SIP -12: Transition Protocol Owned Liquidity Pool on Velodrome Finance (OP mainnet) to SONNE/USDC

Summary

This proposal advocates for transitioning the existing SONNE/USDC.e liquidity pool on Velodrome Finance to a SONNE/USDC LP. This upgrade aligns with the SONNE platform's and wider optimism mainnet ecosystem adoption of native USDC (as proposed on https://snapshot.org/#/sonnefi.eth/proposal/0x4a5c71044e85634c17a25e5b7594480e8edae2524f2f1d040697039047d6db0a) and offers significant benefits for both SONNE and its users.

The current SONNE/USDC.e LP utilizes the bridged version of USDC, potentially causing confusion and missing out on the advantages of native USDC. Additionally, this pool may not be eligible for future Velodrome incentives focused on native assets.

Also note the POL on Aerodrome (BASE) was also successfully transitioned to SONNE/USDC on 25/12/2023

Benefits:

Clarity and Consistency: Aligns with the proposed naming change for USDC on SONNE, promoting seamless understanding. Enhanced Security: Leverages the potential advantages of native USDC's robust audit history and secure issuance. Access to Incentives: Enables participation in Velodrome's upcoming $OP incentives tailored for native USDC LPs, driving increased liquidity and potential rewards for SONNE and its users. https://x.com/VelodromeFi/status/1760378343093149820?s=20 Future-Proofing: Positions SONNE to smoothly integrate native USDC when available, providing users with access to a more efficient and secure ecosystem.

Timeline:

Establish Intent and agreement through rough social consensus and subsequent vote Establish agreement with Velodrome on incentive structure and transition details. Communicate the plan to users and create new SONNE/USDC LP. Facilitate liquidity migration with user support. Provide incentives(bribes) to the new SONNE/USDC LP before the epoch flips.

Proposal:

Transitioning the SONNE/USDC.e LP to SONNE/USDC offers a strategic advancement for SONNE and its users. This change fosters clarity, enhances security, opens doors to attractive $OP incentives, and prepares SONNE for future developments surrounding native USDC.