saddlefi

Co-authored by: Yneas (Head BD @ Fluidity Money)

Summary

Expand Saddle’s partnership with Fluidity Money by adding their new pool to the gauges and requesting some SDL from the treasury to co-incentivize it.

Abstract

This SIP seeks to bring the new community pool by Fluidity Money to Saddle’s gauge system, alongside some fabulous incentives from both protocols. The SIP also seeks to add the Fluidity multisig to the veSDL whitelist. Allowing them to lock SDL, participate in governance, and build products that utilize the vote escrow mechanism.

Motivation

NOTE: Fluid USDC (fUSDC) is a yield bearing stablecoin. Whenever transferred, both sender and receiver (split 80%/20% respectively) become eligible for yield on a chance basis. The rewards come in 5 tiers, from 3 cents every other transaction to the current jackpot of 10k. The yield is dynamic, and increases with TVL due to the underlying mechanism. Every action taken on this pool comes with a chance to win.

As members of the Atlantean Embassy, the partnership program of Fluidity Money, Saddle is able to generate revenue for the DAO stemming from Fluid Asset swaps. Users of the pool will be able to earn 80%, while Saddle will receive 20% of the yield in the treasury. This SIP aims to kickstart the utilization of this pool by rewarding liquidity provision with rewards stemming from both parties, hoping to create sustained volume, and thus sustained yield for the DAO which can be utilized in future endeavors.

Additionally, post IDO Fluidity Money will enact Utility Mining campaigns with their governance token $FLUID. This will see the activation of Utility Gauges on their platform, allowing users to vote using veFLUID. The votes on gauges determine pools that will receive emissions of $FLUID through the same mechanism that distributes yield on Fluid Assets.

In the near future, when Fluidity has launched their vote escrow mechanism, Saddle and Fluidity will extend their partnership with a token swap and lock agreement to participate in the gauges of each other’s communities; this would see SDL being distributed through Utility Mining on the fUSDC - USDC pool.

Specification

• Queue up a multisig transaction whitelisting 0xb590e67516e77f74Bb1aeC0c32dF2Fa4602cfe42
• Add the fUSDC-USDC pool to the gauges
• Incentivize gauge with 1MIL SDL from the treasury over 3 months, to be matched with 10000 fUSDC by Fluidity Money