ARC - Strategic Partnership with Balancer Part #1

Sure thing @pakim249.

I am glad you asked as there are probably many people wondering just this. The reasoning is rather simple, if we do an on-market purchase there is a risk market participants will know when the AIP will execute, will see the transaction and will be able to sandwich the trade. We would also need to write the code rather than use something already audited. A 15K BAL purchase via Cowswap incurs 52 bps slippage. Therefore we would need several transactions over a period of time. The Bonding Curve is an easy, governance friendly approach.

With the bonding curve, what we are doing is crowd sourcing the BAL and providing a small price incentive for participants to purchase the BAL and deposit it into the Bonding Contract. At 50bps, is it quite small. If we used just the oracle feed and no premium, we risk the order not being filled. I think of the 50 bps as paying for a service and also the ability to acquire BAL via a transparent on-chain governance process. We intend to work with audited code that has been used before.

I am open to suggestions and want the best outcome that is time efficient to implement. ie: light on dev time.

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