SIP-X: Launch L2D4 Pool on Arbitrum
Launch L2D4 Pool and Gauge on Arbitrum.
This is a proposal to launch a new pool and gauge on Saddle, called L2D4, on the L2 network Arbitrum. The intent is to spark L2 adoption and Saddle TVL and user growth on Ethereum Layer2 networks. By creating and incentivizing this new pool/gauge, Saddle has the opportunity to become the clear market leader as the premier low slippage swap DEX on L2, and each stablecoin protocol collaborating here as well stands to benefit not only economically by deeper liquidity on L2, but also by demonstrating leadership in the DeFi ecosystem at an important regulatory and industry crossroads.
Layer2DAO spent significant time identifying the best protocols to likely make this initiative a success and a win-win scenario for all parties involved. Ultimately these include Frax Finance, Alchemix, dForce, and Sperax. The respective stablecoins that would comprise the L2D4 pool would be: $FRAX/$alUSD/$USX/$USDs.
This proposal is unique in a few ways - first by demonstrating leadership from Saddle in continued innovation - as well as excellent alignment to the core ethos of standing for DeFi and expanding Web3 adoption to L2 networks. The first Gauge in DeFi history with rewards in six (6) native governance tokens will also create strong attention around Saddle Finance and all the new and exciting developments the protocol is working to build.
This SIP-X seeks to deploy a pool and gauge on Saddle’s Arbitrum pools called “L2D4”, consisting of 4 stablecoins that have demonstrated strong demand in the marketplace and are the right fit for alignment with Saddle’s long term strategic objectives. Working with the Layer2DAO 6; all innovative and leaders in their own right; collaborating here on supporting L2 adoption as well as the growth of Saddle TVL.
Passing of this SIP will allow Saddle to launch the L2D4 pool on Arbitrum, incentivized by 6 native governance tokens over 12 weeks to begin, with reassessment at the end of the 12 initial week timeline, a first in DeFi. Web3 evolves fast, and in order to remain competitive, a protocol needs to adapt just as fast. The merge is over and everyone wants to know what is next. L2 networks are the current landscape where massive opportunity exists to onboard new users and capital to DeFi and an unprecedented L2 collaboration between 6 leading protocols can serve as a strong catalyst.
The SIP-X would see Saddle work alongside Layer2DAO as the L2DAO team works to usher in mass adoption to Ethereum Layer2 scaling solutions; in particular Arbitrum.
Deploy a pool and gauge to Arbitrum called L2D4, consisting of the stablecoins $FRAX/$alUSD/$USX/$USDs and provide yield farming incentives in 6 governance tokens for a period of no less than 8 weeks in the native protocols goverances tokens which are: $FXS, $AlCX, $DF, $SPA, $L2DAO, $SDL.
For: Launch L2D4
Against: No change.