SIP #15 - Launch STG Liquidity on Optimism via Arrakis Finance Vaults on UniV3

Currently, the liquidity situation for Stargate Protocol on Optimism is non-existent, even though the protocol owns sufficient protocol owned liquidity.

Therefore, Arrakis has proposed to provide Stargate Protocol with the full spectrum of liquidity management services on Uniswap V3, to create deep and sustainable liquidity for STG on Optimism.

Phase 1 - Vault Creation & Management

Arrakis will assist Stargate Protocol on setting up an Arrakis vault. As liquidity is being deposited into the vault, the underlying strategy will focus on maintaining deep liquidity for STG while minimizing the IL risk as much as possible.

Phase 2 - Monitoring & Adapting

Furthermore as the volume or volatility profile changes Arrakis Vault will re-range accordingly.

For the services provided, Arrakis charges a fee of 2.5% on top of trading fees generated.

• Arrakis proposes to become a liquidity management arm of Stargate Protocol and use its domain expertise to provide dedicated liquidity management solutions, while the core team can save the technical & operational overhead and focus its resources on building Stargate Protocol.
• Arrakis’ liquidity management solutions will significantly improve the current liquidity situation of STG.
• Arrakis will also assist and advise on any market making related decision makings, and the future growth & expansion of STG liquidity, to provide a full spectrum of liquidity management services.

The voting options will be for deploying 100%, 50%, or 0% of the POL on Optimism.