Title: Create & Incentivize Axelar USDC Pool on SaucerSwap V2
Author(s): SaucerSwap Labs
SaucerSwap Voting Interface: TBA
Related Discussions: None
Submission Date: 2026-03-02
Summary
This proposal creates an axlUSDC/USDC 0.05% pool on SaucerSwap V2 and assigns it a 1.5% LARI weight of SAUCE rewards. The new allocation will be funded by (i) reducing the existing USDC[hts]/USDC hashport pool by 0.44% and (ii) reducing all other V2 pools currently receiving LARI SAUCE rewards on a pro rata basis for the remaining ~1.05% (with final basis-point rounding applied at implementation to reach the full 1.50% target). Upon ratification, the pool will be created. The LARI reweights of SAUCE rewards will take effect at the start of the next epoch.
Motivation
What is axlUSDC?
axlUSDC is Axelar’s wrapped, multichain representation of USDC, backed 1:1 by USDC locked in the Axelar Gateway on Ethereum.
Why add this pool now?
Axelar integrated with Hedera on February 24, 2026, and the integration launched with Squid support. SaucerSwap Labs has also added a dedicated bridge to their interface, powered by Squid and Axelar.
Squid’s routing architecture routes cross-chain transfers through (a) axlUSDC/USDC stable pools and (b) USDC/native pools. On Hedera, an axlUSDC/USDC pool therefore serves as the stable conversion endpoint that enables users to bridge canonical USDC via Squid and finalize into native Hedera USDC with a local swap step.
This matters because Circle’s official CCTP (Cross-Chain Transfer Protocol) supported-chains list does not include Hedera; until that changes, a liquid Axelar→Hedera USDC path on SaucerSwap is a practical way to strengthen stablecoin onboarding and execution on Hedera.
Why a 1.5% / 1.5% balance?
Setting both axlUSDC/USDC (Axelar) and USDC[hts]/USDC (Hashport) to 1.5% is an intentionally measured baseline: it seeds liquidity for a newly launched route without over-allocating emissions on day one, and it produces comparable starting incentives across the two USDC routes. This follows the same governance pattern used when LayerZero markets were introduced in Proposal 5609: establish the route, begin with a fair baseline weight, then reevaluate based on observed usage and apply the fee-primary driven methodology for future reweights.
Specification
Target pool (0.05% fee tier)
- Create: axlUSDC/USDC V2 — Axelar USDC / native Hedera USDC
Mechanism
-
Allocate 1.5% of LARI SAUCE emissions to the new axlUSDC/USDC pool.
-
Fund that allocation by:
-
reducing USDC[hts]/USDC by 0.44%; and
-
reducing all other V2 pools currently receiving LARI SAUCE rewards on a pro rata basis for the remaining ~1.05%, with final basis-point rounding applied at implementation to reach the full 1.50%.
-
-
This proposal adjusts LARI SAUCE weights only. No other reward streams are changed by this proposal.
LARI weight changes
-
axlUSDC/USDC (Axelar): 0% → 1.5%
-
USDC[hts]/USDC (Hashport): current weight − 0.44% → 1.5%
-
All other eligible V2 pools receiving LARI SAUCE rewards: pro rata reductions in aggregate equal to the remaining balance required to fully fund the new 1.5% allocation
For each eligible pool i, the new weight is calculated pro rata based on its current SAUCE weight:
new weight = current weight × (1 − p / W)
Where:
-
p = the aggregate pro rata reduction required from the eligible set to complete the new 1.5% allocation after the 0.44% reduction from USDC[hts]/USDC
-
W = the sum of current SAUCE weights across all eligible V2 pools receiving LARI SAUCE rewards, excluding axlUSDC/USDC and USDC[hts]/USDC
USDC[hts] denotes Hashport-bridged USDC, while axlUSDC denotes Axelar-wrapped USDC.
Activation
-
Upon ratification: create the axlUSDC/USDC 0.05% V2 pool
-
Start of the next epoch: apply the LARI SAUCE reweights above
Rationale and benefits
Bridge diversification and market structure
This proposal adds a second bridge-based USDC route anchored against native Hedera USDC. That improves route diversity, strengthens price discovery between Hashport and Axelar flows, and creates a cleaner basis for arbitrage and execution across stablecoin ingress paths.
Support for the SaucerSwap bridge stack
SaucerSwap’s front-end bridge is powered by Squid and Axelar, and Squid’s liquidity model is explicitly built around axlUSDC/USDC and USDC/native endpoints. Creating this pool strengthens the bridge path already surfaced to users and reduces friction for users entering Hedera through Axelar-powered flows.
Measured initial weighting with explicit reevaluation
Equalizing Axelar and Hashport USDC routes at 1.5% each is a starting configuration, not a permanent commitment. The weights will be reevaluated based on demand signals such as volume, TVL, and fee generation, and adjusted through follow-up governance if warranted—consistent with the emissions-splitting approach used for the initial introduction of LayerZero markets.
Trade-offs
The trade-off is a modest reduction in LARI SAUCE emissions for other V2 pools. The intent is that improved stablecoin onboarding, deeper USDC liquidity, and incremental fee generation justify that reallocation. A conservative starting weight and explicit reevaluation criteria keep this risk bounded.
Voting options
-
YES — Approve
Create the axlUSDC/USDC 0.05% V2 pool upon ratification and apply the specified LARI SAUCE reweights at the start of the next epoch.
-
NO — Reject
Do not create the new axlUSDC/USDC pool and do not reallocate LARI SAUCE emissions; retain the current weighting scheme.
-
ABSTAIN