SIP-X Loans for Ondo Liquidity as a Service

Summary

Once tokenomics development completes, launch SDL on SushiSwap with an implied price of $0.30 per SDL by using Ondo’s Liquidity as a Service (LaaS) while agreeing to backstop any potential losses to Frax. Additionally, enter a 3-year loan with a strategic partner for 4.5% of the token supply with a goal to provide liquidity in trading pairs.

Abstract

Saddle will use Ondo’s LaaS to launch and support an SDL/FRAX SushiSwap pool as tokenomics and SDL unlock go into place.

Motivation

The approval of SIP-8 SDL Unlock, Tokenomics, and Liquidity saw the Saddle community vote in favor of several new initiatives including:

  • SDL tokenomics including vote escrow and other future plans
  • SDL token unlock
  • Using Ondo’s LaaS to launch the initial SDL/FRAX trading pair

However, SIP-8 outlined the need for a future proposal which would ask the Saddle community to vote on specifics of the LaaS deal regarding SDL trading.

Specification

Saddle will loan 16.66M SDL to Ondo’s liquidity vault. FRAX will match with 5M FRAX resulting in an implied initial price of $0.30 per SDL on Sushiswap. Saddle will also backstop any potential losses to Frax.

Saddle will enter a 3-year loan with a strategic partner for 4.5% of the token supply, with an option to be repaid in USD at the initial price. This partner intends to provide liquidity in trading pairs and will remain anonymous except to the community multisig.

For: Execute the loans detailed above.

Against: No change.

  • For
  • Against

0 voters

2 Likes

This plan looks great and will help set the protocol up for a successful SDL unlock! :cowboy_hat_face:

4 Likes

feels like little / weird info to even think much about this.

who is the anon?
is there any reputation or it is just a) straight up loaning some anonymous entity 45 mill of token at initial price, or b) anon to me but not to thee

I assume the later so wondering why create more than necessary information asymmetry. Whats the point / intention behind it, and how is anyone meant to vote on such a thing.

The wording overall is kind of confusing for my smooth brain.

1 Like

I vote for, of course!

2 Likes

Yes, a good partner. I’m interested too. I’ve seen Gus have a good weight, I’m inclined to the same opinion as him.

2 Likes

I have waited this for long

2 Likes

Hi everyone - Gabriel from Ondo here. We’re excited to kickstart this partnership with Saddle for our Frax-as-a-Service vaults!

Please feel free to ask us any questions here or on our Discord.

(Just to clarify: the 3-year loan is not related to Ondo and our offerings.)

3 Likes