SIP-X: Token swap with L2DAO

SIP-X: Token swap with L2DAO

Summary

Exchange the equivalent of 1MM $SDL for an equivalent dollar value of $L2DAO, calculated with a 30-day moving average at time of this proposal.

Abstract

This SIP seeks to strengthen the partnership between Saddle and L2DAO by way of a token swap and lock agreement between our protocols.

Motivation

Motivation Authored by: Weston Nelson | Layer2DAO

Maintaining active governance in Saddle Finance will provide strong economic advantages for Layer2DAO, and in turn, Saddle as well - due to the nature of the collaboration between the two protocols. By staking SDL, the Layer2DAO can control a significant portion of locked SDL and this provides a major benefit such that: Layer2DAO can vote for SDL emissions to be directed towards L2 farms on Saddle, ensuring deep liquidity and strong returns for those providing liquidity on L2 Ethereum.

L2DAO is laser-focused on growing L2 ecosystem projects and partnering with Saddle paves the way for TVL to grow on L2s such as Arbitrum and Optimism. Layer2DAO will be focusing all governing power towards directing SDL emissions to L2s.

Swap Executed Trustlessly Thanks To Hedgey Finance

This DAO-to-DAO on-chain token swap was executed in collaboration with our partner, Hedgey Finance. The transaction was completed seamlessly through the Hedgey UI, allowing The Layer2DAO treasury to execute an entirely trustless token swap with the Saddle Finance treasury, on Arbitrum(?).

Hedgey sees DAO-to-DAO token swaps as a new way for DAOs to collaborate with each other; allowing DAOs to strengthen their partnership by investing in each other, participating in each other’s governance, and staking. To learn more about how you can utilize Hedgey for DAO-to-DAO token swaps, DAO compensation/locked token distributions, or OTC trades, go to hedgey.finance or join their Discord.

About Saddle Finance:

Saddle is a decentralized automated market maker on the Ethereum (and other EVM) blockchains, optimized for pegged value crypto assets across multiple chains.

Saddle believes in collaboration, in building Saddle as a DeFi lego block, and in helping DeFi teams bring pegged asset swaps to any blockchain or L2. Go to saddle.finance on the web to learn more. Saddle is collaborative and fun to work with: We root our ethos in the desire to support the DeFi ecosystem and partner with like-minded protocols.

Saddle stands for DeFi: We commit ourselves to open-source software and collaboration to fulfill the promise of DeFi, of financial Lego blocks.

About Layer2DAO:

Layer2DAO is expanding the Ethereum L2 ecosystem and investing in L2 ecosystem projects. The DAO uses its treasury to invest into high-impact L2 protocols and ecosystem plays, serving as a diversified venture fund for investors looking to gain exposure to the L2 ecosystem growth.

Learn more about the Layer2DAO at layer2dao.org or check out the project’s documentation

Twitter | Discord

Specification

Request 1MM SDL from multisig: 0x3F8E527aF4e0c6e763e8f368AC679c44C45626aE, for multisig: 0x5318f07A3a20A2f8bb0DDf14F1DD58C517a76508.

Saddle to lock all L2DAO obtained in this agreement in the xL2DAO vault for the max duration of two 2 year terms. Layer2DAO vaults only allow for a maximum lock of 2 years. At the end of the first lock Saddle will roll the lock for another 2 year term, for a total of 4 years.

L2DAO to lock all SDL obtained in this agreement as veSDL for the max duration of 4 years.

Use Hedgey.Finance to execute the swap.

Swap to be executed no longer than 72 hours after the passing of this SIP.

Poll:

  • For: Enter into a tokenswap agreement with L2DAO.

  • Against: No change.

0 voters