XIP #22: Base Liquidity

This XBorg Improvement Proposal suggests two options for securing the initial liquidity for the XBG/USDC trading pair on Base. XBorg will provide $100,000 in XBG and an additional 100,000 USDC via the option most voted for.

Context

Last month, XIP #21: XBG on Base was approved. It suggested creating a USDC/XBG trading pool on Base, setting up liquidity provision incentives via Aerodrome Finance, and transferring 50% of the Aribitrum trading pool liquidity to the pair on Base. However, due to the current market correction, the liquidity on Arbitrum has decreased significantly, and a new solution is needed to fund the initial liquidity on Base.

Options

1. Community Raise

• Target raise: 100,000 USDC
• Terms: 5% discount on the XBG spot price
• Allocation: 5,000 USDC max per wallet
• Location: xbg.xborg.com via a smart contract
• KYC: Yes, one wallet per KYC
• Timeframe: 7 days
• Distribution: Once 100,000 USDC is reached or a refund occurs

2. Solana Liquidity Reallocation

• Withdraw 100,000 USDC equivalent from the XBG/SOL trading pool
• Maintain a minimum of 70% of the current liquidity on Solana

Additional Liquidity Strategy

To add to the initial Base liquidity, we will implement liquidity provision incentives via Aerodrome Finance, the leading DEX on Base. This will make the trading experience smoother, increase the XBG holder count and increase our awareness in the Base ecosystem.

• Aerodrome $AERO incentives
• Proprietary liquidity incentive program
• Total expected liquidity (one-sided USDC): $1,000,000 within Q2 2025

Success Metrics

We will view the initiative as a success if:

• The initial Base liquidity is secured within a week following the end of the vote
• There is a minimal price impact on existing XBG trading pairs
• Base trading volume is greater than $50,000 daily average in the first month

Risks

Option 1:

• Not reaching the target raise amount within a week following the end of the vote
• KYC requirements could detract XBG buyers

Option 2:

• Temporarily reduced Solana liquidity could hurt the trading experience on Solana
• Short-term XBG price impact

Implementation

The selected option will be executed within 7 days after the vote has ended.