SIP-13: Extend Saddle USDs Farm

Snapshot Voting link HERE
Voting is open 9/26 at 5:28PM ET to 9/29 at 5:28PM ET.

Author(s): Sperax Team
Reference: Recent AMAs
Created: 9/24/22
Labels: #LiquidityMining

Simple Summary

After a successful token swap, the recently acquired SDL will be used to redirect SDL emissions to the USDs pool on Saddle Exchange. A reduction in SPA emissions on the pool can maintain a constant TVL thanks to the new SDL emissions. The proposal suggests extending the farm until new SDL emissions are added, at which point the rate will be reduced by 50%.

Abstract

Extend the USDs farm on Saddle with its current emissions rate of 111.111K SPA/day, funded by the Bootstrap Liquidity budget. This emission rate will last until October 7th. After October 7th the SPA emission rate will be reduced by 50% and subsidized with new SDL emissions.

Motivation

Reduce liquidity bootstrapping burn rate: Once the SDL is emitting starting October 7th, reduce SPA emission rate by 50%.

Overview

Sperax executed a successful token swap with Saddle Finance. The purpose of this swap was to give each respective group governing power in the others ecosystem by staking the tokens. The 2,000,000 SDL will staked and used to redirect as many SDL to the USDs pool on Saddle as possible. Additional SDL which will be emitted to the pool after our participation in the Minichef Reward Allocation vote. The upcoming vote is for emissions which will start on October 7th.

Technical Specification

Continue the USDs Saddle farm in its current iteration. 111.111K SPA/day in rewards to be supplied from the Bootstrap Liquidity budget until October 7th at which point the emission rate will be reduced to 55,555 SPA/day until another governance proposal suggests otherwise.

Voting

Yes: Approve continuing USDs Saddle farm, reduce by 50% on October 7th

No: Reject continuing USDs Saddle farm

  • Yes
  • No

0 voters

Big supporter of this.
Let’s assess the TVL and APR of the pool after the minichef allocation for October 7th - 21st.

After a few weeks we will have a better grasp on the necessary SPA emission rate to hit a healthy TVL.

2 Likes

Good amount of liquidity in that farm. I think its necessary to bridge the gap to gauge control, then can reconsider protocol emissions. I support this proposal.