This XBorg Improvement Proposal suggests transferring half of the XBG/WETH liquidity from Arbitrum to set up an XBG/USDC pool on Base via Aerodrome Finance and provide XBG liquidity incentives to support the new trading pool.

• If accepted, XBorg will transfer 50% of the current XBG/WETH liquidity to create an XBG/USDC pool on Aerodrome Finance. This will be accompanied by a liquidity mining program with 800,000 XBG tokens allocated over 90 days.
• If rejected, the core team will maintain the current liquidity positions and discuss alternative DEX strategies with the community.

Context

Aerodrome Finance has emerged as the leading DEX on Base, consistently maintaining high trading volumes and offering attractive incentives through its veAERO tokenomics. By establishing a presence on Base through Aerodrome, XBorg can tap into a growing ecosystem while diversifying its liquidity across networks.

Our XBG/WETH liquidity on Arbitrum is greater than necessary for current trading volumes. Splitting this liquidity to establish an XBG/USDC pair on Aerodrome would create new trading opportunities while maintaining sufficient liquidity on Arbitrum.

About Aerodrome Finance

Aerodrome Finance is the premier DEX on Base, built on Velodrome's proven architecture. It features sustainable yield through veAERO emissions, a gauge voting system for enhanced rewards and deep protocol-owned liquidity.

Benefits

• Access to Base's growing DeFi ecosystem and user base
• Additional trading pair (XBG/USDC) provides more options for traders
• Potential for enhanced rewards through: -- Base layer rewards (AERO emissions) -- XBG liquidity provision incentives -- Bribes and gauge voting incentives
• Increased visibility within the Aerodrome ecosystem

Risks

• Initial slippage may be higher on Arbitrum due to reduced liquidity
• Success depends on Aerodrome's continued growth and adoption
• Additional sell pressure from liquidity mining rewards
• Smart contract risks inherent to new protocols

Implementation Details

• Transfer 50% of XBG/WETH liquidity from Arbitrum to Base
• Create XBG/USDC volatile pool on Aerodrome
• Implement a 90-day liquidity provision program:
• Total allocation: 800,000 XBG
• Distribution: ~8,889 XBG per day
• Additional AERO rewards based on gauge weight

Cost-Benefit Analysis

The proposed 800,000 XBG allocation represents a strategic investment to:

• Establish a presence within a fast-growing ecosystem
• Create deeper liquidity for the XBG/USDC trading pair
• Attract new users through dual reward incentives (XBG + AERO) The combination of protocol-native rewards (AERO) and XBG incentives should create sustainable liquidity while minimising the need for extended emissions.

Next Steps

If approved, the entire process will likely take 30 days to complete as development work is required.

If rejected, the core team will maintain the current liquidity positions and discuss alternative DEX strategies with the community.