Proposal to Activate Yield Farming of 0.6% for V1 HBAR/GRELF Pool

Proposal
1

Summary

We propose reassigning the farm weight from the V1 SAUCE/GRELF pool to the V1 HBAR/GRELF pool, setting the latter to 0.6%. This shift aims to leverage HBAR’s stability and GRELF’s growing influence to enhance liquidity, stabilize the pool, and boost community engagement within the Hedera ecosystem. The adjustment aligns with GRELF’s organic growth and supports the broader ecosystem’s development.

Abstract

Since its 2022 launch, GRELF has risen as the premier Hedera Token Service (HTS) meme coin, dominating as the #1 meme token on Hedera. Its growth is fueled by integration with the Bonzo lending platform and visibility on platforms like Hashgraph Enthusiast. Led by Warlock—a skilled developer, artist, and creator of both SaucerSwap and Bonzo tutorials—GRELF has fostered a devoted community and significant influence. Shifting farm weight to the V1 HBAR/GRELF pool will harness HBAR’s stability, enhance pool liquidity, and further galvanize GRELF’s community, aligning with SaucerSwap’s vision for sustainable growth within the Hedera ecosystem.

Motivation

GRELF’s rapid growth and strong community support make it a cornerstone of the Hedera ecosystem. The current SAUCE/GRELF pool, while active, is less stable due to SAUCE’s speculative nature and lower market cap compared to HBAR. Additionally, the planned removal of V2 HBAR/GRELF liquidity in favor of consolidating into the V1 HBAR/GRELF pool necessitates this adjustment to maintain and enhance GRELF’s momentum. This proposal addresses the need for greater liquidity, reduced volatility, and stronger incentives for GRELF’s community to drive ecosystem growth.

Specification & Rationale

The proposal involves setting the farm weight of the V1 HBAR/GRELF pool to 0.6%, reallocating weights from less impactful pools to prioritize GRELF’s growth. Key impacts include:

  • Increased Liquidity and Stability: Pairing GRELF with HBAR, Hedera’s native token with a higher market cap and trading volume, will attract more liquidity providers to the V1 HBAR/GRELF pool. This reduces impermanent loss risks and volatility, making the pool more appealing for long-term investment.
  • Community Engagement: The farm weight increase rewards GRELF’s dedicated community, recognizing their contributions and incentivizing continued participation. This strengthens the social fabric of the ecosystem, fostering enthusiasm and loyalty.
  • Ecosystem Growth: GRELF’s organic growth, with significant emissions reinvested into the ecosystem, positions it as a key driver of Hedera’s DeFi expansion. A 0.6 farm weight amplifies GRELF’s influence, supporting broader adoption and development.
  • HTS Farm Weight Adjustments:
    • SAUCE/GRELF: Reduce from 0.3% to 0 (to prioritize HBAR/GRELF).
    • SAUCE/SAUCEINU: Reduce from 0.2% to 0 (low market cap and volume).
    • SAUCE/SPACEAPE: Reduce from 0.06% to 0 (low market cap and volume).
    • HBAR/BULL: Reduce from 0.04% to 0 (low market cap and volume).

These adjustments reallocate resources to maximize the impact of the HBAR/GRELF pool, phasing out underperforming or less strategic pairs.

Benefits (Pros)

  • Enhanced Liquidity: The HBAR/GRELF pool will benefit from improved trading conditions, reduced slippage, and increased attractiveness for liquidity providers, encouraging long-term investment.
  • Stronger Community Engagement: Higher farm weight incentivizes GRELF’s community, fostering greater participation, enthusiasm, and loyalty, which strengthens the Hedera ecosystem.
  • Ecosystem Synergy: Aligning with HBAR’s stability and Hedera’s growth potential amplifies GRELF’s role, driving broader DeFi adoption and reinforcing SaucerSwap’s position.

Downside (Cons)

  • Loss of SAUCE/GRELF Farm Weight: Eliminating the SAUCE/GRELF farm weight may reduce incentives for SAUCE liquidity providers, potentially impacting trading activity in that pool.

Voting

  • For: Approve the creation of a 0.6% farm weight for the V1 HBAR/GRELF pool, reallocating weights from SAUCE/GRELF, SAUCE/SAUCEINU, SAUCE/SPACEAPE, and HBAR/BULL as outlined.
  • Against: Maintain the existing farm weight of 0.3% for the V1 SAUCE/GRELF pool and keep current weights for other listed pools.

We encourage the community to vote in favor of this proposal to enhance GRELF’s growth, improve pool stability, and strengthen the Hedera ecosystem’s DeFi landscape.

2

I do appreciate you making the formal proposal page for this. A few previous proposals just went from RFC to voting.

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