What is an Omnipool?

Omnipools are liquidity pools that Opal utilizes to allocate a single underlying asset across multiple Balancer pools. For example the wstETH Omnipool accepts deposits of wstETH, and will allocate that to several Balancer pools that have wstETH as an underlying token.

How can a new Omnipool be created?

New Omnipools need to be proposed and approved via governance.

Which Balancer pools are supported?

Opal aims to support all Balancer pools pairing the assets deposited in the Omnipools, offering a wide choice of AMMs design such as weighted or composable pools.

In order to be usable by an Omnipool, a Balancer pool must first be whitelisted via a Opal DAO vote.

How can I earn BAL, AURA and GEM?

$BAL, $AURA and $GEM rewards accrue to stakers of Omnipool LP tokens. By default, Omnipool LP tokens get staked and unstaked via the Opal UI when a deposit or withdrawal is made.

How do Omnipools rebalance funds across multiple Balancer pools?

Omnipools rely on an incentivized and passive rebalancing system based on deposits to and withdrawals from it. When a user deposits into an Omnipool the deposit will always be made to the least allocated Balancer Pool relative to the target distribution, and when a user withdraws it will come from the most over-allocated Balancer Pool. This means that with regular deposits and withdrawals the pool will maintain a balanced state.

To incentivize regular deposits and withdrawals, $GEM emissions are given out to users who deposit into Omnipools while the pools are imbalanced and the rebalancing reward period is active. This period is activated after Balancer pool weights have been updated in an Omnipool (i.e. after a LAV). The $GEM received will be based on the amount deposited, and will also increase over time while a pool is imbalanced, and will stop when the pool is balanced again.

Once the Omnipool is balanced within an allowed deviation threshold, $GEM emissions to incentivize deposits will be set to zero until the next rebalancing period.

How much GEM is paid out to incentivize rebalancing?

The amount of $GEM paid out depends on the deposit amount and increases with time (capped at 5% APR). This incentivizes users to rebalance as soon as the $GEM pay out is high enough for it to be profitable.

What if someone deliberately imbalances an Omnipool?

By design, Omnipools do not allow to be imbalanced deliberately. When depositing into an Omnipool, the deposit will be made into the Balancer pool that is the most under-allocated relative to its target allocation. Similarly, when withdrawing from an Omnipool, the withdrawal will always be made from the most over-allocated Balancer pool. The exception to this is when the deposit or withdrawal is so large, that it would push the balance of that Balancer pool the other way, resulting in it being more imbalanced than before and over a specified imbalance threshold. In this case, a full deposit is made, where the deposit is split over several Balancer pools such that the Omnipool is relatively balanced after the deposit/withdrawal.

Does an Omnipool contain some idle funds to reduce gas costs on deposits?

All deposits into an Omnipool are always transferred directly to one or more Balancer pools. However, the Balancer pool LP tokens may not always get deposited (and subsequently staked) on Aura.

What can I do with my Omnipool LP tokens?

An LP may stake their Omnipool LP tokens to receive an amount of sGEM that depends on the LP's value of staked LP tokens relative to the total Opal TVL.

Who decides how much of an Omnipool's underlying asset a Balancer pool should receive?

In an Omnipool, each supported Balancer pool has a liquidity allocation weight, which determines the amount of liquidity that the Balancer pool should receive. These weights get updated in biweekly liquidity allocation votes (LAVs).

Are BAL and AURA earnings compounded?

No. Omnipools pay out all the $BAL and $AURA that a user has earned as soon as the user claims their rewards. However, any "extra rewards" (e.g. LDO or FXS) that a Balancer pool receives will be sold for $GEM and get paid out to Omnipool LPs.

Do Omnipools support Balancer pools that do not directly hold the underlying asset?

No, Balancer pools that do not directly hold the underlying asset are not supported.

What happens if a token depegs in one of the Balancer Pools used by an Omnipool?

In the event that a token depegs in one of the Balancer Pools, an action can be triggered by anyone which helps to protect the Omnipool from the impact of the depegging. This action results in the weight of the Balancer Pool being set to 0 and $GEM rebalancing rewards being enabled again. The effect of this is that the Omnipool should withdraw funds from the depegged Balancer Pool and move them to other Balancer Pools.

The definition of a Balancer Pool being depegged is if the Balancer LP Token has deviated by more than the depeg threshold since the last time the Omnipool weights were updated. The depeg threshold can be updated through governance, it is initialized to 3% on contract deployment.

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