SIP-20: Diffusion Finance tokenswap and exclusivity agreement

Voting ended almost 4 years agoSucceeded

Summary

Establish a relationship with Diffusion Finance on Evmos via a token swap and exclusivity agreement.

Abstract

This SIP seeks to establish a relationship between Saddle Finance and Diffusion Finance by means of a token swap and exclusivity agreement. The DIFF tokens received by Saddle from Diffusion will be used to incentivize Saddle’s new 4pool (USDT, USDC, FRAX, DAI) on Evmos. The SDL tokens received by Diffusion from Saddle will be used to incentivize their Evmos:FRAX pool. Both protocols will agree to an exclusivity agreement outlined below.

Motivation

Diffusion is a cutting edge AMM on the new Evmos network which facilitates swaps between ERC-20 tokens while also being plugged into the Cosmos hub via Evmos’ IBC-compatibility. Diffusion is working closely with Nomad bridge, the preferred bridging partner of both Saddle Finance and the Evmos core teams. This token swap + exclusivity agreement will bring together Saddle, Diffusion, Nomad, Evmos and Frax, by aligning incentives in the following ways:

Saddle will incentivize their 4pool (USDT, USDC, FRAX, DAI) with DIFF tokens which will drive liquidity to a) Evmos, b) Saddle, c) Nomad, and d) Frax
Diffusion will incentivize their FRAX:Evmos pool with SDL, which will drive liquidity to a) Evmos, b) Diffusion, c) Nomad, and d) Frax.
The exclusivity agreement will ensure that liquidity is not fragmented between multiple DEXs/AMMs, StableSwap providers, and bridges – a crucial requirement to ensure the efficiency and smooth user experience of the burgeoning Evmos/Cosmos DeFi ecosystem.

Specification

Diffusion will send 225k $DIFF tokens to Saddle. Saddle will send Diffusion SDL of an equal value priced at the 7day moving average starting 1 week after the SDL token unlock.

Additionally, establish the following exclusivity agreement for 6 months between Saddle and Diffusion:

For any other DEX or AMM on Evmos, Saddle will not: incentivize poos or vaults, purchase/stake governance tokens, or otherwise integrate.
Diffusion will provide stableswap incentives exclusively to Saddle. For any other DEX or AMM on Evmos, Diffusion will not: incentivize poos or vaults, purchase/stake governance tokens, or otherwise integrate.

For : Establish a partnership with Diffusion, as laid out in the specification of this SIP

Against : No change

Off-Chain Vote

For

830.36K SDL97.6%

Against

20.31K SDL2.4%

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Timeline

May 23, 2022Proposal created

May 23, 2022Proposal vote started

May 26, 2022Proposal vote ended

Oct 26, 2023Proposal updated

Abstract

Motivation

Saddle will incentivize their 4pool (USDT, USDC, FRAX, DAI) with DIFF tokens which will drive liquidity to a) Evmos, b) Saddle, c) Nomad, and d) Frax

Diffusion will incentivize their FRAX:Evmos pool with SDL, which will drive liquidity to a) Evmos, b) Diffusion, c) Nomad, and d) Frax.

The exclusivity agreement will ensure that liquidity is not fragmented between multiple DEXs/AMMs, StableSwap providers, and bridges – a crucial requirement to ensure the efficiency and smooth user experience of the burgeoning Evmos/Cosmos DeFi ecosystem.

Specification

Diffusion will send 225k $DIFF tokens to Saddle. Saddle will send Diffusion SDL of an equal value priced at the 7day moving average starting 1 week after the SDL token unlock.

Additionally, establish the following exclusivity agreement for 6 months between Saddle and Diffusion:

For any other DEX or AMM on Evmos, Saddle will not: incentivize poos or vaults, purchase/stake governance tokens, or otherwise integrate.

Diffusion will provide stableswap incentives exclusively to Saddle. For any other DEX or AMM on Evmos, Diffusion will not: incentivize poos or vaults, purchase/stake governance tokens, or otherwise integrate.

For : Establish a partnership with Diffusion, as laid out in the specification of this SIP

Against : No change