Balancer Protocol Fee Allocator v2

Project Overview

The Protocol Fee Allocator v2 is the official system for distributing protocol fees collected across the Balancer ecosystem on a biweekly basis.

This system processes fee data from multiple chains, calculates fee allocations according to governance-approved parameters, and generates executable Safe transactions for distribution.

Getting Started

Setup

# Install dependencies
pip install -r requirements.txt

# Set up environment variables
cp .env.example .env

Environment Variables

Required:

• DRPC_KEY - API key from dRPC for querying multichain data

Optional (but recommended for deterministic block fetching and reproducible results):

• GRAPH_API_KEY - API key for The Graph
• EXPLORER_API_KEY_MAINNET - Etherscan API key
• EXPLORER_API_KEY_ARBITRUM - Arbiscan API key
• EXPLORER_API_KEY_POLYGON - Polygonscan API key
• EXPLORER_API_KEY_BASE - Basescan API key
• EXPLORER_API_KEY_GNOSIS - Gnosisscan API key

Running the Allocator

Combined Mode (Recommended for biweekly runs)

# Run both v2 and v3 allocations with automatic payload merging
python main_combined.py

# Run with specific timestamps
python main_combined.py --ts_now <end_timestamp> --ts_in_the_past <start_timestamp>

# Run with specific date range string
python main_combined.py --date_range_string 2025-04-24_2025-05-08

Single Protocol Version

# Basic run (uses default timestamps - last 2 weeks from odd Thursday)
python main.py

# Run with specific protocol version (v2 or v3)
python main.py --protocol_version v3

# Run with custom output file names
python main.py --fees_file_name v2_fees_2025-04-24_2025-05-08.json --output_file_name v2_incentives_2025-04-24_2025-05-08.csv

# Full example for v2
python main.py \
  --ts_now 1715270400 \
  --ts_in_the_past 1714060800 \
  --fees_file_name v2_fees_2025-04-24_2025-05-08.json \
  --output_file_name v2_incentives_2025-04-24_2025-05-08.csv \
  --protocol_version v2

Testing

# Install dev dependencies
pip install -r requirements-dev.txt

# Run all tests
python -m pytest -s

Workflow Process

Biweekly Process

1. Fee Collection: Every Thursday at 9am UTC, GitHub Actions triggers fee collection via Mimic API

   • Workflow: .github/workflows/get_mimic_report.yaml
   • Creates fee files in fee_allocator/fees_collected/

2. Fee Allocation: When fee files are merged, allocation is automatically triggered

   • Workflow: .github/workflows/trigger_fee_collection.yaml
   • Runs combined allocation for both v2 and v3 using main_combined.py
   • Automatically merges payloads and deduplicates transfers

3. Manual Collection: Can be triggered manually for specific dates

   • Workflow: .github/workflows/collect_fees.yaml
   • Runs single protocol version allocation
   • Specify end date and protocol version (v2 or v3)

Output Files

The allocator generates several output files:

• Incentive CSVs: fee_allocator/allocations/incentives/

  • v2_incentives_<start>_<end>.csv
  • v3_incentives_<start>_<end>.csv

• Bribe CSVs: fee_allocator/allocations/output_for_msig/

  • v2_bribes_<date>.csv
  • v3_bribes_<date>.csv

• Non-core pool CSVs: fee_allocator/allocations/noncore/

  • v2_noncore_<start>_<end>.csv
  • v3_noncore_<start>_<end>.csv

• Partner CSVs: fee_allocator/allocations/partner/

  • v2_partner_<start>_<end>.csv
  • v3_partner_<start>_<end>.csv

• Payloads: fee_allocator/payloads/

  • v2_<date>.json - Safe transaction payload for v2
  • v3_<date>.json - Safe transaction payload for v3
  • <date>.json - Combined v2+v3 payload

• Reconciliation: fee_allocator/summaries/

  • v2_recon.json - v2 reconciliation data
  • v3_recon.json - v3 reconciliation data

Project Structure

• fee_allocator/ - Main package
  • fee_allocator.py - Main allocator logic
  • accounting/ - Defines chain-agnostic configuration and data as well as chain-specific accounting logic
  • allocations/ - Output CSV files
  • fees_collected/ - Input fee JSON files from Mimic
  • payloads/ - Safe transaction payloads
  • summaries/ - Reconciliation reports
• tests/ - Test suite
• main.py - CLI entry point for single protocol runs
• main_combined.py - CLI entry point for combined v2+v3 runs
• combine_payloads.py - Utility to merge v2/v3 payloads with deduplication

Branch Strategy

• biweekly-runs - Main branch for biweekly fee runs
• gha-mimic-fees-* - Auto-created branches for Mimic reports
• gha-biweekly-fees-* - Auto-created branches for fee allocations
• manual-fees-* - Branches for manual fee collections