# Create & Incentivize Axelar USDC Pool on SaucerSwap V2 **URL:** \ **Category:** Request for Comment\ **Created:** [March 2, 2026, 12:53am UTC](https://gov.saucerswap.finance/t/create-incentivize-axelar-usdc-pool-on-saucerswap-v2/330 "2026-03-02T00:53:40Z")\ **Posts on this page:** 2\ **Page:** 1
**Author:** ![Larry](https://yyz1.discourse-cdn.com/flex003/user_avatar/gov.saucerswap.finance/larry/32/161_2.png) [@Larry](https://gov.saucerswap.finance/u/Larry)\ **Post date:** [March 2, 2026, 12:53am UTC](https://gov.saucerswap.finance/t/create-incentivize-axelar-usdc-pool-on-saucerswap-v2/330/1 "2026-03-02T00:53:40Z")
**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](https://www.saucerswap.finance/bridge), 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](https://www.saucerswap.finance/governance/elections/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: - 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** - **NO — Reject** - **ABSTAIN** ---
**Author:** ![H-Barbara](https://yyz1.discourse-cdn.com/flex003/user_avatar/gov.saucerswap.finance/h-barbara/32/59_2.png) [@H-Barbara](https://gov.saucerswap.finance/u/H-Barbara)\ **Post date:** [March 2, 2026, 1:34am UTC](https://gov.saucerswap.finance/t/create-incentivize-axelar-usdc-pool-on-saucerswap-v2/330/2 "2026-03-02T01:34:49Z")
I have no question about the creation part of the proposal. How much institutional liquidity are we expecting for initialization of the pool? I do wonder about the incentivization, since there’s barely any reasons to hold axlUSDC as itself.