SIP-13 Loans for Ondo Liquidity as a Service

Summary

Once tokenomics development completes, launch SDL on SushiSwap with an implied price of $0.30 per SDL by using Ondo’s Liquidity as a Service (LaaS) while agreeing to backstop any potential losses to Frax. Additionally, enter a 3-year loan with a strategic partner for 4.5% of the token supply with a goal to provide liquidity in trading pairs.

Abstract

Saddle will use Ondo’s LaaS to launch and support an SDL/FRAX SushiSwap pool as tokenomics and SDL unlock go into place.

Motivation

The approval of SIP-8 SDL Unlock, Tokenomics, and Liquidity 4 saw the Saddle community vote in favor of several new initiatives including:

• SDL tokenomics including vote escrow and other future plans
• SDL token unlock
• Using Ondo’s LaaS to launch the initial SDL/FRAX trading pair

However, SIP-8 outlined the need for a future proposal which would ask the Saddle community to vote on specifics of the LaaS deal regarding SDL trading.

Specification

Saddle will loan 16.66M SDL to Ondo’s liquidity vault. FRAX will match with 5M FRAX resulting in an implied initial price of $0.30 per SDL on Sushiswap. Saddle will also backstop any potential losses to Frax.

Saddle will enter a 3-year loan with a strategic partner for 4.5% of the token supply, with an option to be repaid in USD at the initial price. This partner intends to provide liquidity in trading pairs and will remain anonymous except to the community multisig.

For: Execute the loans detailed above.

Against: No change.