Simple Summary
Proposal to partner with Solidex by providing our ve(3,3) NFT in exchange for tokens which serve as a fractionalized representation of the NFT in addition to governance and vote locking power over Solidex thus ensuring long term treasury revenue growth.
Abstract
Solidex is a Convex-like protocol built on top of Solidly. In exchange for permanently depositing our ve(3,3) NFT with Solidex, we are able to fractionalize our ability to boost rewards from providing liquidity on Solidly. We receive additional benefits such as vote power, the ability to stake for further rewards, and the ability to bribe for even more rewards.
Specification
In exchange for our veSOLID NFT, Saddle will receive SOLIDsex tokens which represent the underlying NFT. This enables us to:
- Effectively factionalize our veSOLID NFT. SOLIDsex tokens could either be distributed among community members or used by the Saddle to accumulate more SEX tokens depending on how Saddle sees fit
- Earn more fees from the Solidly protocol
By opting to join as SEX partner protocol, we therefore become one of the few protocols which share at least 10% of the entire SEX token supply. If more than 10 partners join, this number changes to 15%.
The solidSEX token will allow partners such as Saddle to votelock our solidSEX tokens in exchange for boosted revenue. On top of boosted revenue from LPing, partners such as Saddle will receive:
- Voting power
- Trading fees + 3rd party incentives
- Bribes from the pools we vote for
- ve(3,3) emissions in the form of SOLIDsex
- 5% of all SOLID farmed as SOLIDsex
Saddle would therefore immediately benefit by receiving SOLIDsex tokens which we can distribute, stake, or LP for further SOLID and SEX emissions. Long term, Saddle would have powerful voting rights over Solidex which would allow us to earn increased fees, bribes, and SOLIDsex tokens (which can be staked for SOLID and SEX rewards).
Motivation & Rationale
With the Saddle token launch on the horizon, we want to maximize the value of the token for future holders. In light motivation along with the recent explosion of DeFi on the Fantom ecosystem and the much anticipated ve(3,3) launch, we believe the best way to position ourselves for maximum value capture is to partner with Solidex.
The thinking is that, within the space of all possible partnerships (particularly in the Fantom ecosystem), the most bang for our buck lies in getting a stake in votelocking protocols. The ve(3,3) NFT Saddle has recently acquired presents us a unique opportunity therefore to lock in votelocking power on Solidex, a protocol vouched for by multiple major DeFi devs and players.
The votelocking power we would secure would allow the Saddle team to provide liquidity on Solidly and earn boosted yields thus increasing the TVL of Saddle. An increase in Saddle’s TVL is, of course, beneficial to future SDL token holders as not only does this increase the reach of governance decisions but a larger TVL increases the amount of downstream benefits the protocol can provide SDL token holders once more specific tokenomics are set in stone in the upcoming months.
We believe that partnering with Solidex is the most beneficial partner relative to any other potential Solidex competitors because of the synergies between Solidly and Solidex. By virtue of being developed by the same team behind Solidly, Solidex stands to benefit from perceived legitimacy compared to any possible competitors developed by a 3rd party. Furthermore, Solidex will benefit from first mover advantage and in a game of network effects, this makes a world of difference.
We would also join in good company as the Fantom DeFi community respected veDAO has also recently opted to join in the same arrangement.
In summation, approving SIP-6 means getting ahead of the curve via fractionalization to have the option to either stake, boost, distribute or partially sell the ability to have strong governance power to members of the Saddle community.
