Introduction

This proposal seeks approval from the Stargate DAO to establish an ETH pool on the Hemi Network.

Motivation

The Hemi Network is a new EVM-compatible layer 2 network that bridges Bitcoin and Ethereum. Hemi is working with LayerZero to get LayerZero deployed on the Hemi network to facilitate cross chain interoperability. Additionally, the Hemi team is working with Stargate to get Stargate deployed on the Hemi Network and for Hemi to become a Hydra chain.

One of Hemi’s unique value propositions is to bridge the Bitcoin and Ethereum ecosystems together, including making Bitcoin assets productive.

To strengthen this relationship with both LayerZero and Stargate, and to promote the use of Hydra, we propose introducing a dedicated ETH pool on the Hemi Network. This bridged ETH is fundamental to the operations of the Hemi Network as it will initially serve as the gas token for the Hemi Network. Easier access to this gas token using existing ETH will help provide a more seamless user experience for Stargate users looking to use/interact with the Hemi network as they will not require use of Hemi’s canonical tunnel (e.g., bridge) to obtain Hemi ETH first.

Proposal

Creation of an ETH Pool on the Hemi Network: Establish an ETH liquidity pool on ETH Network, facilitating efficient transfer of ETH between Ethereum and Hemi Network.

Liquidity Support: The Stargate DAO should be providing initial liquidity from other Stargate pools from Arbitrum and Ethereum. Hemi will provide incentives to help bootstrap the initial liquidity. Over 1 year, Hemi will provide a quarterly 3x points boost as part of its existing incentivization program (subject to market conditions). Any subsequent liquidity should be incentivised according to SIP#23.

Conclusion

Approval of this proposal will establish an ETH pool on the Hemi Network.