SIP X - Whitelist Pitch to Stake veSDL, Offer pitchSDL, and Establish Liquidity Pool

Summary

This proposal suggests whitelisting the Pitch Foundation to stake veSDL through a smart contract so it can offer pitchSDL: a liquid wrapper with governance integration. It also proposes establishing an SDL/pitchSDL liquidity pool and gauge to allow pitchSDL holders to exit their governance positions.

Background

Earlier this month, Saddle and Pitch entered into a comprehensive partnership to provide services for the former’s budding governance infrastructure. The first solution we provided was a robust vote incentives marketplace for Saddle’s 11 Ethereum Mainnet gauges, which debuted on Wednesday, August 24, 2022.

Using the Governance Console, liquidity providers can now incentivize votes for their pools to optimize emissions flows and boost ROI, all while rewarding their voters for ensuring emissions go to their gauges.

Motivation

But the vote incentives marketplace still revolves around vote-escrow tokenomics, forcing governance participants into highly illiquid positions for up to 4 years. Pitch has routinely used liquid wrapper tokenomics to mitigate against this illiquidity, and plans now to do so for Saddle.

With a liquid wrapper, SDL holders will be able to provide Pitch with their unlocked tokens in return for pitchSDL, which they will then use to vote on gauge weights through Pitch’s Snapshot. Once their proxy votes are cast, Pitch will vote on their behalf using its veSDL treasury. Any rewards accrued will be distributed back to voters pro rata, at which point they may be relocked for more pitchSDL or swapped for other tokens.

To ensure that the pitchSDL liquid wrapper is truly liquid, this proposal also suggests establishing a liquidity pool and corresponding gauge for the pitchSDL/SDL pair. This pool will allow pitchSDL holders to exit their governance positions at any time. The gauge will ensure adequate emissions flows as rewards to pitchSDL/SDL liquidity providers.

Specification

This SIP will provide liquidity for those in Saddle governance positions with the liquid wrapper tokenomics described above. This will effectively render governance positions liquid while retaining access to vote incentives and ve-token yield through on-demand exit functionality with a pitchSDL/SDL liquidity pool. It will also establish a liquidity gauge to facilitate the wrapper’s liquidity.

For:

  • Whitelist the following contracts to enable veSDL staking for pitchSDL:
    • 0x1a381C7a8A47E2e7247d45eC374391129d1B6021
    • 0x17A67BDb5cfB7A21781240997505d69A398813Bc
    • 0xF942f26188229025AA81aE96cc0D19408Bd62dd9
  • Establish SDL/pitchSDL liquidity pool on all platforms supporting any Saddle liquidity pools
  • Establish SDL/pitchSDL liquidity gauge on all platforms supporting any Saddle liquidity gauges

Against: Do nothing

Poll:

  • For
  • Against

0 voters

1 Like

Seems like a wonderful idea!