Title: Establish DAO Allocation for CEX Listings & SAUCE Liquidity on Base
Author(s): SaucerSwap Labs
SaucerSwap Voting Interface: TBA
Related Discussions: Establish DAO Treasury Allocation for Current & Future CEX Listings
Submission Date: 2025-09-17
Summary
This proposal incorporates community feedback from Establish DAO Treasury Allocation for Current & Future CEX Listings and introduces a standing framework that allocates 60% of the DAO Treasury (USD-equivalent NAV across all assets) to fund future CEX listing fees and to provide initial and ongoing liquidity for both current and future CEX spot and derivatives markets. Liquidity support applies retroactively and prospectively (to backfill existing listings and bootstrap new ones), while listing fees are forward-looking only. Immediate precedent includes an upcoming Southeast Asian CEX listing and a pending Kraken application, but the framework is designed to be generalized and CEX-agnostic. Of the 60% Allocation, 5% is dedicated to seeding and maintaining a SAUCE/WETH pool on Uniswap V3 (Base chain), broadening access to SAUCE through Coinbase and Uniswap apps and increasing visibility among DeFi-native users.
Abstract
CEX listings expand token accessibility, deepen liquidity, and reach KYC-verified retail users with fiat on-ramps. Rather than holding one-off votes per listing, this proposal creates a single, capped allocation (60% of the Treasury) to fund future listing fees and provide SAUCE (or other required asset) liquidity for both new and existing spot markets, as well as to support perpetuals with defined, budgeted costs and recoverable collateral. The goal is to reach an inflection point where visibility and liquidity prompt CEXs to list proactively—ideally waiving fees over time. Liquidity support may also be deployed retroactively to replace company-provided liquidity on existing markets, allowing SaucerSwap Labs to withdraw its inventory and ensuring that liquidity is held directly by the DAO. Past listing fees paid by SaucerSwap Labs are non-reimbursable.
A further motivation is establishing SAUCE liquidity on Base chain: Base has become one of the fastest-growing Layer-2s, with 28.4M monthly active addresses and 5.14B in TVL, demonstrating strong user growth and engagement. By strategically positioning liquidity there, we improve access via Uniswap, Coinbase mobile, and other on/off ramp-enabled platforms, while aligning with a high-momentum chain.
Motivation
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Distribution & Access: Additional CEX coverage helps non‑DeFi users acquire SAUCE and provides fiat pathways.
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Market Quality: Seed and maintenance liquidity, as required by CEXs, help reduce slippage and promote orderly price discovery.
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Growth: Programmatic coverage can compound awareness, volumes, and integrations across CEXs.
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DAO Stewardship: Retroactive and forward liquidity deployment transfers responsibility from SaucerSwap Labs to the DAO, ensuring that exchange liquidity is transparently held and governed on-chain.
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Strategic Positioning: Establishing SAUCE liquidity on Base expands accessibility through Coinbase (native fiat rails) and Uniswap (via integrated fiat partners), creates additional secondary markets that drive volume through arbitrage, and increases visibility among DeFi-native users, drawing them into the SaucerSwap ecosystem.
Specification & Rationale
Scope of the Program
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Allocate 60% of total DAO Treasury NAV (USD equivalent, measured at drawdown using 24-hrs TWAP on SaucerSwap) as a CEX + Base Liquidity Allocation (the “Allocation”).
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Authorized uses within the Allocation:
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Future CEX listing / integration fees for spot and derivatives (non-retroactive).
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Initial and maintenance liquidity for current and future spot markets (retroactive and forward-looking).
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Market making retainers and related support for both spot and derivatives markets, including incentives, operational / indexing / insurance costs, and recoverable collateral posted to CEXs or MMs.
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Seeding and maintaining SAUCE/WETH liquidity on Base (Uniswap V3), with rebalances as needed to maintain a 5% Treasury allocation.
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Budget Framework
Listing cadence and fees are assumptions intended for planning purposes only.
Spot
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Tier 1 (e.g., Kraken, OKX, Bybit): $500K fee + $500K liquidity ($250K SAUCE + $250K stables) → $1,000,000 total per listing; 0.5 listings / year.
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Tier 2 (e.g., Gate.io, KuCoin, MEXC): $200K fee + $200K liquidity ($100K SAUCE + $100K stables) → $400,000 total per listing; 1.0 listings / year.
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Tier 3 (e.g., BitMart, LBank, CoinEx): $25K fee + $100K liquidity ($50K SAUCE + $50K stables) → $125,000 total per listing; 1.0 listings / year.
| Tier | Listings / Yr | Fee / Listing | Liquidity / Listing | Total / Listing | Annual Total |
|---|---|---|---|---|---|
| Tier 1 (Spot) | 0.5 | $500,000 | $500,000 ($250k SAUCE + $250k stables) | $1,000,000 | $500,000 |
| Tier 2 (Spot) | 1.0 | $200,000 | $200,000 ($100k SAUCE + $100k stables) | $400,000 | $400,000 |
| Tier 3 (Spot) | 1.0 | $25,000 | $100,000 ($50k SAUCE + $50k stables) | $125,000 | $125,000 |
| Combined (Spot) | 2.5 | — | — | — | $1,025,000 / yr |
Derivatives
- Tier 2 Perpetuals (e.g., Gate.io, KuCoin, MEXC): $50K integration fee + $240K MM retainer + $75K incentives + $25K ops / index / insurance → $390,000 cash total per market (excluding $250K recoverable collateral); 0.5 markets / year.
| Product | Listings / Yr | Fee / Integration | MM Retainer / Yr | Incentives | Ops (Index/Insurance) | Cash Total / Listing | Recoverable Collateral |
|---|---|---|---|---|---|---|---|
| Tier 2 (Perpetuals) | 0.5 | $50,000 | $240,000 | $75,000 | $25,000 | $390,000 | $250,000 |
Definitions: Fee / Integration covers one-time exchange work to launch the perpetual contract (product configuration, risk parameterization, index linkage to SAUCE spot data, testing, and any compliance setup). The MM retainer is an ongoing payment required by exchanges for market makers to maintain order-book depth, tight spreads, and risk management across both spot and derivatives markets. Incentives refer to market-function support (maker rebates, funding rebates, or volume-based MM incentives) and explicitly exclude exchange-mandated promotional token allocations or marketing campaigns. Ops / Index / Insurance bundles recurring exchange charges for index maintenance and data, risk/operations infrastructure, and insurance-fund contributions. Recoverable collateral is capital posted to the CEX or MM to underwrite positions; it is tracked within the Allocation but is not an expense and should be returned upon exit subject to CEX terms. Cash totals shown exclude collateral.
Base
The DAO will seed a Uniswap V3 SAUCE[base]/WETH 0.3% pool on Base, where SAUCE[base] is the Hashport-bridged representation of SAUCE. The pool will be ~$63,400 in protocol-owned liquidity (POL), entered 50:50 SAUCE:WETH (swapping for or entering into an OTC deal to obtain the necessary WETH at entry). Of the 5% Treasury allocation, 3% sits in a ±50% band (wide backstop) and 2% in a ±25% band (tighter execution), with periodic rebalances if price deviates materially from the YTD weekly average used for sizing or if SAUCE/WETH diverges materially. The wide band reduces out-of-range risk during volatility, while the tighter band improves execution for everyday trades. Using these parameters, a $100 swap shows a negligible price impact of ~0.045% price impact (fee excluded), making Base a practical entry point for cross-chain users and supporting arbitrage across markets.
Budget Summary
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Program totals (cash basis): $1,220,000 per year ($1,025,000 spot + $195,000 derivatives), plus an initial ~$63,400 Treasury allocation for Base liquidity (calculated using the YTD weekly average SAUCE price), with rebalances if the price deviates significantly from this mean—bringing Year 1 to $1,283,000 and $1,220,000 in subsequent years.
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Quarterly planning figure (cash): $368,400 in the first quarter (Base liquidity front-loaded) and $305,000 in subsequent quarters.
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Capital locked (recoverable collateral): $250,000 per derivatives market (tracked within the Allocation but not treated as expense).
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With the exception of the first quarter (Q4 2025), the proposed 60% CEX + Base Liquidity Allocation is delta-positive for the DAO Treasury, as the quarterly planning spend ($305,000) remains below projected quarterly inflows from emissions (~$346,485K, assuming YTD weekly average price of SAUCE). This ensures the treasury continues to grow while fully funding Base liquidity and expected annual cadence of spot and derivatives markets.
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Any deviation from these planning levels that would cause annual cash spend to exceed the budget requires a separate DAO proposal; outsized single‑quarter needs are permitted so long as total annual spend remains within the approved limits and will be disclosed in the per‑draw memo with transaction hashes (TXIDs).
Gating Criteria
Actual cadence and CEX selection will be determined by SaucerSwap Labs in coordination with the DAO, based on prevailing market conditions, liquidity, and strategic priorities.
Retroactive Liquidity Backfill
The DAO may deploy liquidity to existing CEX markets so SaucerSwap Labs can remove its liquidity.
| CEX | Pair(s) | Current SaucerSwap Labs ↔ DAO Liquidity Backfill Target |
|---|---|---|
| MEXC | SAUCE/USDT | 690.4k SAUCE; 47.2k USDT |
| Gate.io† | SAUCE/USDT | 3.6M SAUCE |
| Total | 4.2904M SAUCE; 47.2k USDT |
† SaucerSwap Labs entered into a zero interest rate loan agreement with Skynet (market maker) where Skynet will return the lesser of 3.6M SAUCE or $125.5k upon request. In exchange, Skynet provides the USDT liquidity and market making services.
Actual token amounts will be calculated at execution using 24-hrs TWAPs on SaucerSwap.
Current Treasury Snapshot
DAO Treasury multi‑signature account: 0.0.1056814
| Asset | Balance | USD Equivalent* |
|---|---|---|
| SAUCE | 24,564,527.40 | $1,267,529.61 |
| HBAR† | 422,046.02 | $105,384.89 |
| USDT/USDC | 0.00 | $0.00 |
| Other | N/A | N/A |
| Total | — | $1,372,914.5 |
† All DAO Treasury HBAR is allocated to the ongoing Incentives Campaign and is excluded from calculations.
*USD Equivalent calculated using the YTD weekly average price of SAUCE ($0.0516)
- Percentages / values to be finalized via on‑chain / market data at time of drawdown and summarized in post‑execution memos.
Conversions / Asset Mix
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The Allocation is defined as a percentage of total Treasury across all assets. To meet CEX requirements (e.g., USDT for fees or quote pairs) and obtain WETH to seed the SAUCE/WETH pool on Base, the DAO may swap within the Allocation between Treasury assets (e.g., to stablecoins, WETH, or SAUCE).
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To minimize market impact, SaucerSwap Labs may also execute OTC swaps with the DAO Treasury (e.g., company‑held stablecoins for DAO‑held SAUCE) at a fair‑value reference price (24‑hrs TWAP on SaucerSwap at execution). OTC will be used when conversions required for liquidity seeding or listing fees could cause material price impact on SAUCE. All conversions—including OTC—will be disclosed with TXIDs in per‑draw memos and will be sized and timed to avoid material price impact on SAUCE.
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A designated single-sig account will manage conversions on behalf of the DAO. The account ID will be published once created, and all transactions from this account will be fully disclosed in reporting.
Execution Controls & Transparency Protocols
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Custody & Transfers: Funds move from the DAO Treasury multi‑sig to designated deposit addresses solely for listing fees, liquidity seeding/maintenance, and approved derivatives support.
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Confidentiality: CEX names will remain undisclosed pre‑listing. Within 7 days post‑listing, Labs will post an update identifying the CEX, the final amounts deployed (and any conversions), and transaction hashes (TXIDs).
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Per‑Draw Memo: Each draw includes purpose (fee vs. liquidity vs. derivatives support), CEX, chain, USD notional, assets used/swapped, and expected timeline; the memo will include relevant TXIDs.
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Publish Conversions & Transfers: All conversion transactions (including direct and OTC swaps) funded by the Allocation, as well as all transfers to/from CEXs and Base, will be published with TXIDs, routing details, and reference pricing.
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Delisting/Failure Contingency: If a listing is canceled prior to execution, no transfer occurs. If a CEX later delists SAUCE or POL is withdrawn from Base, any recoverable funds (including derivatives collateral) will be returned to the DAO Treasury.
Pros
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Programmatic funding accelerates CEX coverage (spot and perps) and improves launch/maintenance liquidity.
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Operational efficiency: fewer one‑off votes, faster execution within a capped, transparent envelope.
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Capital‑efficient deployment of otherwise idle treasury funds.
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Centralizing both new and backfilled exchange liquidity within the DAO strengthens on-chain governance, improves transparency, and reduces dependence on company-held assets.
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Establishing SAUCE/WETH liquidity on Base broadens access through Coinbase and Uniswap apps, creates secondary markets that drive arbitrage volume, and increases visibility among DeFi-native users.
Cons
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Treasury spend on listing fees and derivatives support has uncertain, market‑dependent ROI.
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Reduction of the DAO’s SAUCE (and/or other assets) depending on conversions and liquidity needs.
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CEX custody/operational risk; recovery on delisting can be delayed or partial.
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Asset conversions may introduce price impact, slippage, and opportunity cost.
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Deploying treasury funds on a new chain introduces bridge and smart contract risk, and the allocation size may be modest relative to demand, limiting immediate depth.
Voting Options
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YES — Approve
Approve allocating 60% of total DAO Treasury NAV to a standing CEX + Base Liquidity Allocation that may be used for (i) future spot listing fees, (ii) spot liquidity, (iii) Tier-2 derivatives support (integration fees, MM retainers, incentives, ops, and recoverable collateral), and (iv) seeding and maintaining SAUCE/WETH liquidity on Base. Authorize swaps within the Allocation (between Treasury assets and into required assets such as SAUCE, WETH, or stablecoins), including OTC swaps with SaucerSwap Labs, to meet CEX and Base requirements. Drawdowns are expected to align with the $305K/quarter ($368.4k in the first quarter) planning figure (non-binding) and require the reporting described above, including TXIDs.
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NO — Reject
Do not create a standing allocation; continue to consider listings, Base liquidity, and derivatives support on a case-by-case basis.
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ABSTAIN