SIP-36: Deploy pSDL/SDL pool, and whitelist Loopfi voter

Proposal Authored by: David | Loopfi

Summary

Loopfi aims to become the home for veSDL stakers and LPs of Saddle Finance to enjoy the best possible returns, and partner with Saddle to make the governance more diversified and resilient.

Background

Loopfi is a decentralized user-owned protocol offering a liquidity solution for Vote-Escrowed Token (i.e., veSDL), allowing users to walk away from the complexity of the gauge boosting system, and maximizing the utility of their deposits with protocols supported (i.e., Saddle Finance).

In the case of Saddle, Loopfi will pool all users' SDL together and lock them up for 4 years, then maximize rewards for Loopfi liquidity providers. Users will also be rewarded with LPF tokens, in addition to SDL emission and Saddle protocol fees. By locking up LPF on Loopfi, users will receive pLPF and vote in the DAO decision-making process to decide the SDL emissions for Saddle gauges.

pSDL is the tokenized version of the time-locked veSDL. When you stake SDL through Loopfi, you will receive pSDL at 1:1 ratio. Each pSDL represents 1 veSDL participating in lock-up staking for a maximum of 4 years.

Loopfi was launched in July with dForce the first partner to support. Loopfi allows users to stake DF for pDF to earn max boost on DF staking rewards while keeping a liquid position. We look forward to building trust and establishing a long-term relationship with Saddle Finance on the basis of mutual benefits.

The Loopfi codebase is based on the code of Convex. Their audit reports can be viewed here.

Motivation

The partnership between Loopfi and Saddle will create a win-win situation for both parties.

For SDL holders, Loopfi enables you to:

• receive max boost on SDL emission and Saddle platform fees;
• access to liquidity for veSDL stakers;
• earn more Saddle governance voting power;
• earn a share of the Loopfi platform fee.

For Saddle liquidity providers, Loopfi enables you to:

• receive max boost on liquidity provided;
• receive max boost on SDL emission and Saddle platform fees;
• access to liquidity for veSDL stakers;
• earn more Saddle governance voting power;
• earn a share of the Loopfi platform fee.

For the Saddle community,

• Loopfi will help to lock up more veSDL to a maximum possible extent, which strongly aligns with Saddle's long-term development.
• Also, onboarding Loopfi will help Saddle diversify its token holder and governance participation.

For the Loopfi community,

• we will be able to accumulate enough veSDL to give a significant boost to the pSDL/SDL pool for higher rewards and deep liquidity.
• we will also be incentivising pSDL/SDL and SDL/LPF pools with LPF token.
  $LPF Incentive

LPF token is the platform token acting as a governance and incentivization tool within Loopfi system.

6,000,000 LPF will be allocated to Saddle to incentivize SDL staking and the pSDL/SDL pool for the first year, subject to governance approval:

• SDL staking: 3,000,000 LPF
• pSDL/SDL pool on Saddle: 3,000,000 LPF

Also, we will set up a LPF/SDL pool on Sushiswap and are happy to incentivize LPs through a joint initiative with Saddle.

Specification

We will be setting up stableasset pool - pSDL/SDL pool on Saddle Ethereum. Therefore, it is proposed that Saddle can support us by:

• setting up a gauge for the pSDL/SDL pool on Ethereum so that TVL will be captured by Saddle;
• allocating some team votes to bootstrap the pSDL/SDL pool;
• staking through Loopfi and providing liquidity for the pSDL/SDL pool, so that Saddle can access liquidity for time-locked veSDL, and accumulate LPF tokens for participation in Loopfi governance;
• Loopfi and Saddle co-incentivise LPF/SDL pool on Sushi (Loopfi and dForce co-incentivize LPF/USX pool on both Ethereum and Arbitrum).

For:

• setting up a gauge for the pSDL/SDL pool on Ethereum so that TVL will be captured by Saddle;
• allocating some team votes to bootstrap the pSDL/SDL pool;
• staking through Loopfi and providing liquidity for the pSDL/SDL pool, so that Saddle can access liquidity for time-locked veSDL, and accumulate LPF tokens for participation in Loopfi governance;
• Loopfi and Saddle co-incentivise LPF/SDL pool on Sushi (Loopfi and dForce co-incentivize LPF/USX pool on both Ethereum and Arbitrum).
• Queue up a multisig transaction whitelisting Loopfi voter at: 0x6E399F1d376237aE705DD015894fC3FB559521b4

Against: Do nothing