Ensure the continued safety of user funds by winding down the protocol by pausing all pools and dissolving the community multisig. Additionally, airdrop protocol-owned $ARB tokens to $SDL, veSDL, and Saddle NFT holders and liquidate the remaining DAO treasury tokens to $ARB to be included in the airdrop. For those using contract wallets such as Gnosis Safe, the $ARB will be converted to ETH and then bridged to Ethereum Mainnet using Across Protocol and distributed accordingly. All other holders will receive $ARB on the Arbitrum network.
The eligible SDL supply is ~500M and veSDL supply is ~43M, which implies an airdrop amount of ~$0.0026 in ARB per SDL and ~$0.01 in ARB per veSDL.
This SIP seeks to ensure the continued safety of user funds by winding down the protocol by pausing all liquidity pools and disbanding the community multisig. Additionally, reward $SDL and veSDL holders by distributing the protocol’s treasury to token holders. The distribution will account for the amount of $SDL tokens a wallet has and how long veSDL has been locked for. If passed, liquidity providers are advised to withdraw their funds.**
The north star for Saddle has always been to be a community run and self sustaining protocol. The core contributors with the help of the wider community have completed the necessary groundwork to realize this vision - Saddle is the premier open-source, MIT licensed StableSwap and the 9th most forked protocol by TVL! In light of this, many core contributors intend to step away from being actively involved by 9/30/23.
The community can decide to either:
- Continue operating the protocol
- Wind down the protocol to ensure the continued safety of user funds
If the community decides to continue operating the protocol, it will be necessary to support the community multisig and the Delos HQ multisig on various operational tasks. However, we believe this will be hard to coordinate and manage over the long term.
On the other hand, the recent Vyper zero-day/Curve hack has shown that protocols are always at risk of exploits due to latent bugs. Additionally, the market value of the protocol’s treasury has recently exceeded the protocol’s circulating market cap. Many community members have proposed distributing the DAO’s $ARB airdrop to token holders (past discussion), and after preliminary discussions with the community and core contributors we believe this is the best path forward to ensure the continued safety of user funds and recognize token holder value.
The final multisig transaction will airdrop 1,545,242 $ARB tokens from the DAO treasury to holders, in addition to funds liquidated from other Saddle protocol-owned wallets and admin fees which will be converted to ARB. To calculate how many $ARB tokens holders receive is as follows:
- $SDL held in user’s wallets, LP tokens, staked LP tokens, or held in vote escrow will receive a 1x multiplier
- veSDL will receive a 4x multiplier
- Each of the 9 Saddle Creator NFTs will be counted as holding 350,000 SDL
- Each of the 1,080 Badges for Bandits NFTs will be counted as holding 7,500 SDL
Using these parameters a wallet’s share of $ARB is then dictated by this formula:
wallet's % of airdrop = (wallet_sdl + 4 * wallet_vesdl) / (sdl_supply + 4 * vesdl_supply)
From this formula, we can derive the appropriate value of one SDL and veSDL:
arb_dollar_value = $1.15 * 1_545_242 = $1_777_028 total_sdl = 502_000_000 total_vesdl = 43_000_000 sdl_dollar_value = 1 * arb_dollar_value / (total_sdl + 4 * total_vesdl) = 1_777_028 / (502_000_000 + 4 * 43_000_000) = $0.0026 vesdl_dollar_value = 4 * sdl_dollar_value = $0.0104
Wallets which belong to Saddle or cannot be attributed to specific users (such as CEX’s or bridges) will be excluded from the airdrop. The “RetroVesting” contract used to initially airdrop vesting SDL is also excluded. The Ethereum snapshot block used for all these calculations will be block #17820592 (1 week ago), and the block with the closest timestamp for other chains. The full methodology can be found here (any fixes/corrections would be much appreciated) and a list of excluded addresses is below:
|Saddle Grants Multisig||mainnet||0x87f194b4175d415e399e5a77fcfdfa66040199b6|
|Saddle Operations Multisig||mainnet||0x4802CedbDF865382dbaED8D5e41a65C8AB840676|
|Saddle Operations Multisig||fantom||0x4802CedbDF865382dbaED8D5e41a65C8AB840676|
|Saddle Operations Multisig||arbitrum||0x6d9b26C25993358dCa0ABE9BF6A26Ddb18583200|
For: Airdrop protocol-owned $ARB tokens to $SDL and veSDL holders and ensure the safety of user funds by winding down the protocol by pausing all pools and dissolving the community multisig.
Against: Do nothing (continue operation).