[HIP-26] - Approve BOOP gauge

Proposal ID: S1.1

Introduction

This proposal seeks community approval to add a new gauge to Hermes, in collaboration with BOOP;

• BOOP/WETH (Minimum width: 1800)

Liquidity for the gauge is already in place on UniV3 on Arbitrum:

• BOOP/WETH - https://app.uniswap.org/explore/pools/arbitrum/0xe24F62341D84D11078188d83cA3be118193D6389

Onchain Action:

Target: 0xE64278005e0F00cd6199d000386b018d7C000000

Calldata:  0x5d6b2a9d000000000000000000000000e24f62341d84d11078188d83ca3be118193d6389000000000000000000000000000000000000000000000000000000000000004000000000000000000000000000000000000000000000000000000000000000200000000000000000000000000000000000000000000000000000000000000708

Strategic Alignment

BOOP is the most loved and owned memecoin on Arbitrum, with over 9,000 holders and an active community:

X - https://x.com/boopthecoin TG - t.me/boopthecoin

BOOP have further been pursuing partnerships within the Arbitrum DeFi ecosystem, with integrations including Stryke, Jones DAO, Orange Finance, Fanko Tech, and WINR. As an Arbitrum Native protocol, Hermes would like to support the culture, and thus a gauge for BOOP's Uniswap liquidity makes sense.

As BOOP is a community run project with fully circulating supply, they don't have meaningful treasury to carry out bribes/incentivization. They can however support the gauge by recycling trading fees back into it as bribes.

BOOP are 100% comfortable with supporting us via media channels, as they do with all their other collabs, both through X and TG. The BOOP community is often extremely supportive with these announcements.

Gauge performance analysis

Snapshots of the relevant historical metrics of the UniV3 pool on Arbitrum:

• BOOP/WETH TVL

Market impact analysis

Hermes gauges will give optionality to BOOPs LPs, who can choose to stake their positions, exchanging fees for emissions of the Hermes tokens. This in many cases will offer boosted rewards, incentivising LPs to join the pool and thicken the depth of liquidity for the BOOP token on Uniswap V3.

Risk assessment

BOOP is a standard ERC-20 token, the contract is renounced and 100% of supply is in the open market. Thus there are no significant technical risks.

Price volatility is relatively high and LPs should take care with positions, remaining aware of the potential for impermanent loss.

Systemmic Risk - LP's should be aware of BOOP tokens use elsewhere in DeFi including in some leveraged strategies, and thus potential for liquidations in periods of high volatility, impacting the price stability of the pools.