Summary

In an era of rapid digital innovation, staying at the forefront of decentralized finance requires embracing new technology and opportunities. This proposal presents an ambitious plan to expand Sonne Finance's ecosystem to Base, Coinbase's Layer-2 blockchain solution, built on Optimism’s OP Stack. By diversifying our platform presence, we can provide our users with a richer, more cost-effective DeFi experience and enhance our ability to onboard new users from the expansive Coinbase ecosystem.

Introduction to Base

Base is the product of a collaborative endeavor between Coinbase and Optimism, engineered to address the challenges of scalability and interoperability faced by Ethereum, while preserving its security standards. Leveraging the capabilities of Optimistic rollups, Base significantly enhances transaction processing capabilities, making it an attractive platform for DeFi projects.

Base shares the commitment to the open-source ethos and public goods, championing the decentralization and permissionless philosophy that aligns closely with the values of Ethereum and the broader cryptoeconomy. Its infrastructure serves as an ideal breeding ground for fostering a more vibrant, decentralized, and permissionless ecosystem.

As the next generation of dapps platform, Base is designed for builders, with the vision of empowering developers to create transformative applications, enriching the onchain experience for users. It presents an enticing proposition for Sonne Finance to access a wider audience, participate in a vibrant ecosystem, and further reinforce our contribution to the cryptoeconomy.

The Expansion Strategy

We propose an integrative expansion strategy to extend Sonne Finance from the Optimism Layer-2 platform onto Base. In an effort to create a unified ecosystem across chains, we plan to bridge 10 million SONNE tokens from the Protocol Growth Fund to Base. Alongside, we intend to initiate a year-long liquidity mining program on Base to incentivize user participation, with rewards distributed linearly to foster consistent community engagement.

Aerodrome will be used for POL strategy similar to engagement between Sonne and Velodrome. The rewards will be distributed to stakers in Optimism. This event have more technical complexity, and it will be done by EOA until a better solution is presented. The claims will be similar to LGE claims, or MARE token claims getting done by Sonne stakers. Stakers will get rewarded by the amount of Sonne they stake on Optimism, but the reward will be on Base.

Pros and Cons of the Expansion

Pros:

• Greater Exposure: As a byproduct of Coinbase, Base offers a larger, diversified user base and an increased visibility for Sonne Finance, enabling us to broaden our reach within the DeFi landscape.
• Increased Liquidity: The proposed liquidity mining incentives on Base are likely to stimulate higher user participation, providing a significant boost to our protocol's liquidity.
• Operational Continuity: The proposed strategy maintains the SONNE token, ensuring continuity of our brand reputation and identity within the market.

Cons:

• Technical Complexity: The transition to a cross-chain operation introduces new complexities and technical challenges that will require careful navigation.
• Risk of Dilution: Bridging additional SONNE tokens onto Base might lead to potential token dilution, impacting the value dynamics.
• Platform Dependence: Our expansion to Base could increase our dependence on the Coinbase ecosystem, introducing potential platform-specific risks.

Voting Options

We believe in collective decision-making and hence, we invite our community members to cast their votes on the proposed expansion:

• Support: If you endorse the expansion to Base, vote 'Yes'.
• Fork: If you are in the favor of forking (similar to Mare) instead of expanding, vote "Fork".
• Reject: If you are against the expansion, vote 'No'.
• Abstain: If you prefer to stay neutral or require more information before making a decision, vote 'Abstain'.

Voting Period

Voting Process will take 1 week.

Post-Approval Steps

Should the proposal be approved, our technical team will work diligently to implement the necessary steps for the expansion:

Arrange the secure bridging of 10M SONNE tokens from the Protocol Growth fund to Base. Establish the liquidity mining program on Base to foster ongoing user engagement.

Conclusion

The proposed expansion to Base marks an ambitious step in Sonne Finance's journey. By leveraging Base's technological capabilities and wide-reaching user base, we strive to enhance our position in the DeFi landscape and provide an enriched user experience. We encourage our esteemed community members to participate in this decision-making process and share their valuable insights. Together, let's shape the future of Sonne Finance and continue our trajectory of innovation in the realm of DeFi.