SIP-9: Extend Saddle USDs Metapool Rewards

Governance proposals (discussed) Approved SIPs
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Voting window will begin 8/25/22 at 7:30AM ET and run through 8/28/22 at 7:30AM ET

SIP-9: Continue Current Saddle USDs Farm

Author(s): Sperax Team

Reference: N/A

Created: 8/22/22

Labels: #LiquidityMining

Simple Summary

Maintaining USDs liquidity on Arbitrum is very important. The USDs farm on Saddle currently has a total TVL of ~$800K at the time of writing. This farm has been used as a swapping method for those looking to acquire USDs, and also serves as a to LP USDs and earn yield. Extending this farm with the current parameters for 30 days is necessary to bridge the gap to a longer term USDs liquidity strategy on Arbitrum.

Abstract

Extending the USDs farm on Saddle with its current parameters of 111.111K SPA/day supplied by the Bootstrap Liquidity budget for 30 days. This is designed to compliment our developing partnership with Saddle community.

Motivation

Having sources of liquidity for USDs on Arbitrum is paramount. With the ushering in of the Sperax Demeter Protocol and its eventual gauge on the horizon, it is necessary to bridge the liquidity gap and extend the Saddle farm in its current form. The parameters of the farm will remain the same and the rewards will come from the Bootstrap Liquidity budget.

Improves the ratio of Auto-yield v non-auto yield USDs. Having USDs is Saddle means that the collateral backing these coins are generating yield but the LP doesn’t receive rebase. This allows for Auto-yield to be funded with lower risk on collateral yield strategies.

This SPA budget will incentivize liquidity through the successful token swap with Saddle.finance. Once this token swap is complete, the Sperax protocol will have power to determine SDL rewards on the USDs metapool.

Overview

The USDs farm on Saddle has been successful in attracting liquidity to be used for swapping USDs or benefitting from the yield as an LP. It is necessary to extend this farm to bridge the gap to longer term liquidity options both within Saddle and with the Sperax Demeter Protocol.

This is fund the farm until a successful token swap with Saddle which is currently up for vote in the saddle snapshot.

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 for 30 days.

  • Yes
  • No

0 voters

2

I support this proposal, it will serve as a nice bridge to further involvement with Saddle.

3

Saddle has been instrumental in generating the initial buzz and has helped us in generating a good amount of TVL. We should continue supporting their community.