SIP 11: Add wBTC/pBTC pool to Ethereum & Arbitrum

Amendments from the passed Discourse poll:

• Deploy a wBTC/pBTC pool to Ethereum in addition to the Arbitrum pool.
• Increase the implied SDL valuation from $100M to $300M.
• Direct incentives to the Ethereum pool instead of the Arbitrum pool.

Summary

Launch a wrapped Bitcoin pool on Saddle on both Ethereum and Arbitrum. Specifically, a pBTC/wBTC pool which could be extended later on to include other wrapped versions of BTC (i.e. renBTC, tBTC, etc).

Background

pNetwork is a decentralized cross-chain protocol currently safeguarding >$150M in TVL and supporting 12 different blockchains. We recently crossed the $1 billion mark in cross-chain volume. With the latest release of the pNetwork V2, pTokens like pBTC, become fungible across chains, meaning users will be able to move their pBTC directly across any of the supported chains without the need to go back to the Bitcoin blockchain. pBTC holders are currently providing about $30M worth of liquidity on Ethereum. But we are committed to fostering further adoption across the Ethereum mainnet ecosystem while simultaneously kicking off a liquidity mining campaign to develop liquidity on the Arbitrum ecosystem.

Motivation

While our main goal is to develop liquidity and foster the adoption of pBTC, we think this is an excellent opportunity for Saddle to expand its reach with a new product and attract liquidity in a new ecosystem. Further wrapped versions of BTC can be easily added later on, in the form of meta pools or tri-pools like the ones on Saddle-Ethereum or Curve-Ethereum.

Specification

Regarding the wBTC/pBTC pool on Ethereum, we propose a three month liquidity incentive campaign using Saddle Minichef Contracts, whereby:

• Saddle provides 200,000 SDL , equalling ~2222 SDL/day.
• pNetwork provides 50,000 PNT equalling ~555 PNT/day.
• The incentives structure assumes a 2:1 ratio of SDL/PNT and a FDV valuation of ~$300M for Saddle.finance. 50,000 PNT are valued at roughly $32k at the current market price.

Regarding the wBTC/pBTC pool on Arbitrum, there will be no incentives at the moment, but peculiar rewards can be discussed with the Saddle community later on in the future post-token unlock.

For: Create wBTC/pBTC pools on Ethereum and Arbitrum, with the Ethereum pool receiving 200,000 SDL or 2222 SDL/day, and 50,000 PNT or 555 PNT/day in liquidity mining incentives for 3 months. Against: No change