$GEM flywheel

Opal is a project whose operation is based on the pooling and deployment of liquidity on a certain index of markets. The value proposition of the protocol is a set and forget, gas cost efficient, diversified and less time consuming access to numerous farming opportunities.

In order to ensure the sustainability and stability of Opal, it is necessary to encourage the different stakeholders to coordinate and balance their interests (represented here by the different incentives)

Instead of securing Opal's native liquidity by locking single sided $GEM to access $vlGEM, resulting in a major imbalance in the idle float of $GEM supply, Balancer BPT token from the GEM-ETH pool will be required. This will ensure liquidity depth for the token as well as allowing it to keep accruing trading fees.

Because the Balancer ecosystem is younger and the emissions higher than Curve/Convex, it offers more convenient opportunities on low TVL pools to farm with higher APRs, and all things being equals the liquidity directed by Opal is far more valuable and can be incentivized through $vlGEM voting incentives. Thus, the Alignment between protocol depositors and governors is being enhanced.

By offering a supercharged $GEM APR to Omnipools LPs (sGEM) who also holds $vlGEM it encourages governors to become depositors and reduce the conflicts of interest.

It can be voted by the DAO to redirect a part of the treasury or fees generated by the protocol toward voting incentives for the GEM/ETH pool, to veBAL or vlAura holders.