SIP-42: Token swap with Alchemix

Summary

Exchange 1,500,000$SDL for an equivalent dollar value of $ALCX.

Abstract

This SIP seeks to strengthen the partnership between Saddle and Alchemix by way of a tokenswap and lock agreement between our protocols.

Motivation

Since the launch of our popular alETH pool, Saddle and Alchemix have collaborated to bring deep liquidity to the popular $alUSD, and $alETH tokens. A tokenswap would stand to tighten the bond between our protocols, and give Alchemix the power to vote in Saddles gauges, furthering the incentive for Alchemix users to continue supporting the liquidity of $alUSD and $alETH.

In addition to deepening the relationship between both protocols, this swap and lock would further diversify the nascent veSDL voting blocks; strengthening veSDL voting communally by renewing the ALCX incentives currently directed at the alETH pool to veSDL holder bribes– via Redacted Cartel’s Hidden Hand for a time.

Specification

Transfer 1,500,000 SDL from multisig: 0x3F8E527aF4e0c6e763e8f368AC679c44C45626aE, to multisig: 0x851abef4d67e8bb4ee2f90e5de5e880f6235d028.

Saddle to lock all ALCX obtained in this agreement in the gALCX vault. Alchemix to lock all SDL obtained in this agreement for the max duration of 4 years.

Redirect all ALCX incentives from Saddles alETH pool, to veSDL holder bribes via Hidden Hand for a duration of 6 weeks, at the end of which another proposal will appear to reassess the distribution mechanism.

For: Enter into a tokenswap agreement with Alchemix.

Against: No change.