Demeter-Camelot LODE-USDs pair deployment and bribe

This proposal aims to deploy a USDs-LODE trading pair on Demeter, SperaxDAO's concentrated liquidity position management protocol, which has just announced Camelot V3 support. This concentrated liquidity pool would exist in parallel to the actual V2 pool. Camelot aggregates the liquidity from both versions of the AMM to guarantee a smooth trading experience.

The Lodestar team has been in discussion with SperaxDAO these last weeks, and we have been invited to join the initial wave of new USDs pairs on CamelotV3, featuring a concentrated LODE-USDs pool.

Camelot V3 is a Concentrated Liquidity Automated Market Maker (AMM), built off AlgebraV2, that enables liquidity providers (LPs) to allocate funds within specific price ranges of a trading pair, rather than the entire curve. This leads to more efficient capital allocation, reduced slippage, and improved trading rates.

Demeter optimizes liquidity provision and position management through smart contract algorithms that automatically adjust concentrated liquidity positions' price ranges, ensuring relevant and active liquidity within desired trading boundaries.

A unique feature of Demeter is the integration of a Gauge, which directs SPA emissions towards pools with an accompanying bribe system. As a DAO, we can bribe veSPA holders with $LODE tokens to increase SPA emissions for the LODE-USDs pair. This approach is more cost-effective than direct incentives, as the emission-to-bribe ratio is significantly greater than 1. By participating in this initial wave of deployment, our pool would receive additional GRAIL emissions from Camelot in addition to SPA emissions from the gauge, as a bootstrap initiative.

This collaboration presents an exciting opportunity to expand our presence in the ecosystem, fostering synergies with other DAOs, while thickening our liquidity and creating arbitrage opportunities.

We place paramount importance on security when partnering with other DAOs and both AlgebraV2, the foundation of CamelotV3, and Demeter have undergone thorough audits by reputable security firms.

By voting yes, you: Accept Sperax’s invitation and deploy a Demeter LODE-USDs pool on CamelotV3 Accept to allocate 500 $LODE per week to bribe veSPA holders so the LODE-USDs pool gets extra SPA incentives during 2 months.

Will share the Snapshot link in the next hours

Through discussions on our forum post, we will reevaluate at the end of the period