[HIP-19] - Launch Parameters: Ulysses Chains and Hermes Gauges

I. Introduction

This proposal aims to approve the initial chains for deploying Ulysses and establish the starting Hermes Incentive System main gauges. With the upcoming V2 update, we have the opportunity to expand our reach by making our systems available across multiple chains. In doing so, we can enhance accessibility and liquidity provision, fostering a more robust ecosystem

The goal of this proposal is to approve:

1. Initial Chains to deploy Ulysses

2. Starting Hermes Main Gauges

3. Structure for current Partners to add Gauges

II. Background and Rationale

As we approach the launch of V2, it's crucial to define the parameters for Ulysses Omnichain launch chains and establish initial gauges for the Hermes incentives system. This preparation ensures smooth integration across key chains, fosters community confidence, and optimizes resource allocation. With clear guidelines in place, we enhance user experience and align our efforts with community needs, laying a solid foundation for a succesful launch.

Here are some resources:

• Ulysses

• Unified Liquidity

• Uniswap v3 Gauges

III. Proposal Details

A. Ulysses Omnichain Launch Parameters

We propose launching Ulysses Omnichain on the following chains. We can launch on chains and not have full support for them on the UI, these are chains that we'll deploy the contracts to make it easier for possible future integrations, this way we can add them in the future if there is any request or liquidity added from these chains.

UI supported chains:

• Arbitrum One

• Ethereum

• Optimism

• Base

• Binance Smart Chain

• Polygon

• Avax

• Metis

Only smart contract deployment chains:

• Fantom

• Scroll

• Mantle

• Fraxtal

• Gnosis Chain

• Berachain

TVL info: https://defillama.com/compare?chains=Optimism&chains=Arbitrum&chains=Base&chains=Mantle&chains=Avalanche&chains=Polygon&chains=BSC&chains=Fantom&chains=Metis&chains=Gnosis&chains=Fraxtal&tvl=true

B. Hermes Incentives System Initial Gauges and Liquidity Structure

The goal is to have an efficient liquidity system that does not require excessive management. For efficient routing, every token should be at most 2 hops away from any main Arbitrum token. In order to optimize the amount of gauges, we can use Balancer Stable Pools as an unifying liquidity token, but the tokens inside a BPT (Balancer Pool Token) should have an equivalent amount of liquidity, demand and security.

With these guidelines in mind, we propose the following initial gauges for the Hermes incentives system.

Native Tokens

The main tokens from each chain that we aim to support routes from/to. These tokens, especially tokens from our root chain (Arbitrum), can also be used in intermediate hops to facilitate swaps with any liquidity from Uniswap V3 or Balancer Composable Stable Pools.

We'd like to clarify that the tokens listed represent the native tokens of each respective blockchain. For instance, when referring to arbETH, it simply denotes Ethereum (ETH) native to the Arbitrum network.

Chain	Token 1	Token 2	Token 3	Token 4
Mainnet	mainnetWETH	mainnetUSDC	mainnetUSDT	mainnetMETIS
Arb	arbWETH	arbUSDC	arbUSDT
OP	opWETH	opUSDC	opUSDT
Base	baseWETH	baseUSDC	baseUSDT
Polygon	polygonUSDT	polygonUSDC
BSC	bscUSDT	bscUSDC
Avax	avaxUSDT	avaxUSDC
Metis	metisWETH	metisUSDC	metisUSDT	metisMETIS

Main Balancer Pool Tokens (BPT)

We can leverage Balancer Composable Stable Pools to aggregate the same tokens from similar chains. This way we can add multiple chains with fewer gauge additions. We propose to aggregate:

• Optimism and Base, that are both from Optimism stack

• Avalanche, Binance Smart Chain and Polygon, that are the largest alt L1 chains

• For Metis token, it's main chains, Mainnet and Metis Andromeda

BPT Name	Amp	Swap Fee	Token 1	Token 2	Token 3
BPT-OP-STACK-WETH	2500	0.01%	opWETH	baseWETH
BPT-OP-STACK-USDT	2500	0.01%	opUSDT	baseUSDT
BPT-OP-STACK-USDC	2500	0.01%	opUSDC	baseUSDC
BPT-ALT-L1-USDT	500	0.03%	polygonUSDT	bscUSDT	avaxUSDT
BPT-ALT-L1-USDC	500	0.03%	polygonUSDC	bscUSDC	avaxUSDC
BPT-METIS	1000	0.03%	mainnetMETIS	metisMETIS

Amp - Amplification Factor. If increased, the pools can be more inbalanced but keep their price closer to 1:1. Visually, this can be thought of as tightening a Uniswap V3 position or (more accurately) flattening the xy=k bonding curve. The similar that tokens from a BPT have liquidity requirements, we can increase the Amplification Factor parameter.

Main Gauges

This is the proposed list of gauges, including MAIA and HERMES. If passed, these gauges will be added to the Uniswap V3 Gauge Factory with these parameters, allowing users, from launch, to swap between any one of these tokens and any other token in Arbitrum's supported liquidity sources.

Gauge Name	Swap Fee	Min. Width
mainnetWETH / arbWETH	0.01%	1
mainnetUSDT / arbUSDT	0.01%	1
mainnetUSDC / arbUSDC	0.01%	1
BPT-OP-STACK-WETH / arbWETH	0.05%	10
BPT-OP-STACK-USDT / arbUSDT	0.05%	10
BPT-OP-STACK-USDC / arbUSDC	0.05%	10
BPT-ALT-L1-USDT / arbUSDT	0.3%	60
BPT-ALT-L1-USDC / arbUSDC	0.3%	60
metisWETH / arbWETH	0.3%	60
metisUSDC / arbUSDC	0.3%	60
metisUSDT / arbUSDT	0.3%	60
BPT-METIS / arbWETH	0.3%	1800
HERMES / arbWETH	1%	1800
MAIA / arbWETH	1%	1800

Because there is already very deep liquidity between Arbitrum tokens, we do not need to support gauges for those pools, as we can see in the diagram:

C. Partner Gauges

Our current V1 partners will have the capability to contribute to our system's growth by adding one gauge per currently whitelisted token (requests are only allowed for their already whitelisted tokens or a new version of their same token). This streamlined process ensures ease of integration and promotes collaborative involvement. Should they require additional gauges to further enhance our system's functionality, they can readily do so through on-chain governance steps. This approach recognizes the contribution of current partners and fosters a decentralized and participatory environment, empowering partners to dynamically adapt and scale according to evolving needs and market demands.

Gauges can be requested by partners either through private chats with out core team or in public in this proposal's discussion (commonwealth or discord). All requests will be included in the last proposal before migrating to V2 approving governance structure parameters.

IV. Implementation Plan

Upon approval of this proposal, the implementation plan will be as follows:

1. Gather final gauge requests from exisitng partners and include them in the final migration proposal

2. Deploy smart contracts and configure the necessary infrastructure for both initiatives

V. Governance Considerations

It's important to ensure that the governance process remains transparent, inclusive, and decentralized. All decisions regarding the Ulysses Omnichain and Hermes incentives system will be made through community-driven governance mechanisms.

VI. Community Engagement and Support

We will actively engage with the community to gather feedback and address any concerns regarding the proposed launch parameters and incentives system. This includes maintaining open communication channels through social media and forums, such as discussing on our discord or during our bi-weekly community calls.

VII. Next Steps and Decision-Making Process

Following the submission of this proposal, the next steps will involve:

1. Community review and feedback collection.

2. Iteration and revision of the proposal based on community input.

3. Formal voting by token holders to approve or reject the proposal.

4. Implementation of the approved parameters and incentives system.

VIII. Conclusion

The launch of Ulysses Omnichain and the implementation of the Hermes incentives system mark significant milestones in the evolution of our protocol. By leveraging multiple chains and incentivizing participation, we aim to create a more robust and vibrant ecosystem that benefits all. This strategic approach not only fosters community engagement and confidence but also ensures our liquidity structure is laid out to support expected user activity across different chains, thereby facilitating efficient resource allocation. We eagerly anticipate the community's support and collaboration in realizing these ambitious goals.

This conversation was started on Commonwealth. See more discussion: here