SIP-59: Start fUSDC - USDs Camelot V2 pool with Incentives

1. Simple Summary

1.1 Proposal

Fluidity Money proposes to work together with Sperax to set up a fUSDC-USDs Camelot V2 pool via Demeter. This pool would be incentivized through SIP-58 to bootstrap liquidity, with additional 5% xSPA rewards. Additional Utility Mining incentives in $ARB will be added on top of the aforementioned incentives, to be paid out whenever a trade with fUSDC occurs.

1.2 Introduction to Fluid Assets and Utility Mining

Fluidity Money is a DeFi protocol that allows users to wrap stablecoins in return for fluid assets (i.e. USDC → ƒUSDC). The stablecoins deposited are lent out on money markets like AAVE, and the yield generated is collected in a reward pool.

Whenever a user transacts a Fluid Asset, they can earn yield from this pool in a no-loss lottery on every transaction. The yield is dynamic and depends on chain variables, with more transactions and higher TVL resulting in more yield. Whenever a transaction is yield bearing, it is split between sender and receiver on an 80–20% split respectively.

Any type of yield can be added on top of the rewards, such as governance tokens or NFTs. This is called Utility Mining and represents a novel way of distributing tokens through the usage of a protocol.

Careful economic modeling ensures resilience against misuse and maintains utility, embodying the platform’s commitment to making finance accessible and rewarding for all.

2. Motivation:

Fluidity is introducing a new narrative centered around incentivising Utility and steering order flow. Through fUSDC, protocols can utilize a novel toolset to better distribute incentives to aligned users and steer productive volume to themselves.

Sperax and USDs will greatly benefit from this through increased activity and higher productive volume going through the pool, as every transaction on the pool will be incentivised with $ARB tokens through Utility Mining. This helps attract more traders to the pool and attract higher liquidity as a second order effect.

3. Overview:

3.1 Proposal

We propose the setup of an incentivized fUSDC-USDs pool and bootstrapping it with liquidity to start it off. The pool will be launched on Camelot V2. For the incentives, we are referring to SIP-58 with additional 5% xSPA rewards.

Additionally, Fluidity will add Utility Mining incentives to the pool, with up to 5k in ARB distributed over the first month.

5. Voting:

Yes: Start fUSDC-USDs Pool on Camelot V2, add SIP-58 emissions with additional 5% xSPA rewards and 5k ARB Utility Mining incentives distributed over one month

No: Reject the proposal

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