How Gauges Work
Voting
Liquidity Mining emissions are distributed among different Gauges according to veBAL voting. All veBAL voting happens on Ethereum mainnet whether the pools are on Ethereum, Polygon, Arbitrum, or any other network on which Balancer has been deployed since this writing. veBAL holders can vote for one or more Gauges, choosing the percentage of their voting power to allocate to a specific Gauge.
Staking
Each pool eligible for Liquidity Mining has a Gauge contract associated with it. In order for Liquidity Providers to be eligible for Liquidity Mining, they must stake their Balancer Pool Tokens (BPTs) in the pool's corresponding Gauge.
Mainnet vs Alternate Chains
Mainnet
On Ethereum mainnet, pool gauges get their BAL directly. Since Ethereum is the core network for Balancer Protocol, it is referred to as the RootChain
.
Alternate Chains
We use the term ChildChain
for non-mainnet chains, whether those are Layer 2 solutions, sidechains, etc. After voting on the RootChain
, liquidity mining tokens are minted by the RootChainGauge
, and bridged to the respective ChildChain
s. The tokens are sent to ChildChainStreamer
contracts and then sent to RewardsOnlyGauge
contracts. As with the RootChain
, Liquidity Providers on ChildChain
s must stake their BPT in a pool's RewardsOnlyGauge
to be eligible for distributions.
Multi-Token Liquidity Mining
Each pool's Gauge contract can distribute up to 8 different kinds of tokens. This allows for multiple partners/protocols/DAOs to incentivize a given pool by adding their own tokens.
In order to prevent spam tokens from occupying those 8 slots and blocking out legitimate tokens, Balancer Governance has the power to allow addresses to be able to add tokens to a Gauge using the Authorizer.
Dividing a pool's LM among LPs
To be eligible for a given pool's BAL emissions, a user must stake their corresponding LP tokens to that pool's gauge. Their share of the BAL emission scales with their proportional stake of LP tokens for that pool.
Additional veBAL Boost
How are Gauges Deployed for a Pool?
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