Balancer Yield Aggregators

Rationale

A liquidity provider claims her distributed BAL back to her wallet address from which she originally supplied the liquidity to Balancer pool(s). To compound the return, she needs to take those BAL and supply them back to a Balancer pool manually every week, which is a hassle. Furthermore, supplying liquidity costs about 350,000 gas, while claiming token costs about 100,000 gas. Considering the gas price nowadays, this claim-then-supply action costs (~30 gwei) about $7-$8. For an APY of 2%, this gas fee is quite significant when the supplied principle amount is below say $10k. Moreover, the return is directly impacted by the price of BAL.

Our Balancer Yield Aggregators

To tackle these issues, we plan to roll out the following vaults:
  1. 1.
    Vault for 80/20 BAL/WETH pool
    1. 1.
      Users deposit their BPT for the BAL/WETH pool into the Hammer Vault in return for hBPT.
    2. 2.
      The distributed BAL for all depositors are claimed for them (i.e. transaction aggregated thus gas fee minimized) and supplied back to the BAL/WETH pool. The expected increase in return is about 30%.
  2. 2.
    Vault for 66/33 BAL/WETH pool
    1. 1.
      Users deposit their BPT for the BAL/WETH pool into the Hammer Vault in return for hBPT.
    2. 2.
      The distributed BAL for all depositors are claimed for them (i.e. transaction aggregated thus gas fee minimized) and supplied back to the BAL/WETH pool. The expected increase in return is about 40%.
  3. 3.
    Vault for 50/50 BAL/USDC pool (WIP)
    1. 1.
      Users deposit their BPT for the BAL/USDC pool into the Hammer Vault in return for hBPT.
    2. 2.
      Similarly, the distributed BAL for all depositors are claimed for them and supplied back to the BAL/USDC pool.
  4. 4.
    Vault for 50/50 BAL/USDC pool with hedging (WIP)
    1. 1.
      Users supply USDC to the vault.
    2. 2.
      One part of those USDC is supplied to BAL/USDC pool into the Hammer Vault in return for hBPT.
    3. 3.
      The other part of those USDC is used to buy -1x leveraged tokens for BAL. This is for hedging the price decline of BAL.
Every Balancer pool has a corresponding BPT token to track pool ownership.
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Outline
Rationale
Our Balancer Yield Aggregators