SIP-18: VELA / USDs Genesis Launch Partner Demeter Farm

Author(s): Uncle B Reference: SIP-17 Created: 11-04-2022 Labels: #LiquidityMining

Simple Summary

Vela, an on-chain perpetual trading exchange built by a veteran crypto/defi team that combines advanced trading features and industry leading tokenomics into one powerful, easy to use platform on Arbitrum, is seeking a SPA incentive match to launch their VELA / USDs Demeter Farm and be included in the Demeter Genesis Cohort whose parameters were approved in SIP-17. Vela is seeking a 1:1 incentive match for the 90 day Genesis Campaign as a Day 1 Launch Partner. Vela plans to incentivize the Demeter farm initially with 20,000 VELA /mo.

Abstract

Vela is looking to launch a VELA/USDs Demeter Farm and be included in the Day 1 Genesis Partner Cohort as approved by SIP-17. Vela will be migrating their token, VELA, to Arbitrum in preparation for their protocol launch.

Motivation

Vela is seeking liquidity for VELA on Arbitrum. By launching a VELA / USDs Demeter farm, Vela will have an instant liquidity solution and also take advantage of pairing against USDs to deepen liquidity and receive matched SPA incentives as part of the Day 1 Demeter Genesis Launch that was approved in SIP-17. Pairing with USDs via Demeter will benefit the Sperax community by increasing USDs TVL, improving Univ3 routing for Arbitrum token pairs, and start paving the way for a fruitful partnership between Vela and Sperax that has many future synergies. Vela will be migrating their token, VELA, around middle to late November, a full timeline is still under construction for this process. Thus, the VELA / USDs farm will be launched once the token migration occurs, and the community will be kept up to date on this timing. As the partnership discussions have been ongoing between Vela and Sperax, Vela is requesting to be included in the Day 1 Launch Cohort, to ensure high incentives and quick adoption for their farm.

Additional partnership avenues are under discussion, and include;

• Low risk, high APR strategy option for Sperax USDC collateral
• Potential use case for USDs through VELA platform
  • LP contribution in USDs
  • Using USDs for trading collateral

Overview

The VELA/USDs Demeter farm will be incentivized initially by 20,000 VELA/month and is requesting to be included as a Day 1 Genesis Launch Partner as approved in SIP-17. Vela is asking for 1:1 matching in SPA, rebalancing in dollar terms every 14 days, for the 90 days Genesis Campaign.

Technical Specification

Farm: VELA / USDs

Incentives: VELA = 20,000 VELA/month (20,000 VELA = $12,000 at the time of submitting this proposal)

SPA match: 1:1 SPA match in dollar terms from the bootstrap liquidity budget. To be rebalanced in dollar value on a 7 day TWAP every 2 weeks

Duration: Match guaranteed for balance of 90 days from Demeter launch unless altered via governance proposal. Demeter v2 logic will determine incentives following the Demeter Genesis Campaign.

Farm Launch Date: TBD (Depends on Vela token migration timeline)

Risk Management: If the VELA / USDs farm goes out of price range SPA emissions will be halted until the farm is relaunched or it goes back in range.

Voting

For:

Approve SPA Rewards and Launch VELA / USDs Demeter Farm

Against:

Deny SPA Rewards for VELA / USDs Demeter Farm