saddlefi

Summary

Modify the results of SIP-15, to launch an incentivized 4pool consisting of USDC / USDT / FRAX / DAI on Evmos and ETH mainnet, pause the current Evmos 3pool, and cancel all UST 4pools on Ethereum and Evmos.

Abstract

This SIP seeks to modify the results of SIP-15 wherein the community voted to deploy a 4pool to Evmos and ETH mainnet. Passing of this SIP will allow Saddle to launch on Evmos and ETH mainnet with an incentivized 4pool consisting of USDC, USDT, FRAX, DAI in lieu of a UST-4pool.

Note: The 4pool deployed on ETH mainnet would not be replacing the well established ‘SaddleUSDPoolV2’.

Motivation

Following the industry wide disruption caused by the depegging of UST, it would be irresponsible to enact SIP-15 as-is. The suggested modification would allow Saddle to maintain a healthy presence, and bring the now battle-tested FRAX to center stage.

DeFi evolves fast and in order to remain competitive, a protocol needs to adapt just as fast. The original motivation for SIP-9, and SIP-15, stand– Evmos will mark the first major foray into EVM-compatible, IBC-enabled blockchains, allowing it to serve as an intersection between the fledgling Cosmos ecosystem, and the well established DeFi landscape of Ethereum.

A FRAX-DAI 4pool in particular would provide a solid foundation for stablecoin based DeFi. This composition is a healthy balance between centralized, and decentralized stablecoins– all of which have proved to have resilient pegs.

Specification

Deploy a 4pool consisting of USDC / USDT / FRAX / DAI to Evmos and ETH mainnet– using Nomad to bridge ETH-native versions of USDC, USDT, FRAX, and DAI to Evmos. 2.5m SDL will be emitted over the course of 2 months, for both the Evmos 4pool and the ETH mainnet 4pool.

The first several weeks of SDL tokens will be distributed as a non-transferable asset using Mini-Chef staking contracts. Post token unlock, Mini-Chef contracts will be swapped out for the gauge system outlined in SIP-8.

Saddle will provide 500k SDL for the Evmos 4pool and 2m SDL for the ETH mainnet 4pool over the course of 2 months.

For: Modify the results of SIP-15 in favor of an incentivized 4pool consisting of USDC / USDT / FRAX / DAI on Evmos and ETH mainnet, and cancel UST 4pool deployments. 500k SDL for the Evmos 4pool and 2m SDL for the Eth mainnet emitted over the course of 2 months.

Against: No change.