# Proposal to create a V2 xSauce/Stickbug pool **URL:** \ **Category:** Proposal\ **Created:** [October 27, 2024, 10:01pm UTC](https://gov.saucerswap.finance/t/proposal-to-create-a-v2-xsauce-stickbug-pool/138 "2024-10-27T22:01:54Z")\ **Posts on this page:** 1\ **Page:** 1
**Author:** ![stickbug](https://yyz1.discourse-cdn.com/flex003/user_avatar/gov.saucerswap.finance/stickbug/32/72_2.png) [@stickbug](https://gov.saucerswap.finance/u/stickbug)\ **Post date:** [October 27, 2024, 10:01pm UTC](https://gov.saucerswap.finance/t/proposal-to-create-a-v2-xsauce-stickbug-pool/138/1 "2024-10-27T22:01:54Z")
**Title:** Proposal to create a V2 xSauce/Stickbug pool **Author(s):** Stickbug, Postmaster, and the Stickbug community **SaucerSwap Voting Interface** : n/a **Related Discussions:** ([RFC - Proposal to create a V2 Sauce/Stickbug Yield farm](https://gov.saucerswap.finance/t/rfc-proposal-to-create-a-v1-sauce-stickbug-yield-farm/119)) **Submission Date:** 10/25/24 ### Summary - We propose the creation of a V2 xSauce/Stickbug pool with a 0.30% fee tier on SaucerSwap. The objective of this pool is to increase liquidity for Stickbug token, and incentivize Stickbug holders crosschain to move to Hedera for staking rewards. Additionally this pool should create a healthier market. ### Abstract - The creation of a V2 xSauce/Stickbug pool should increase the amount of liquidity in Stickbug related pairs while minimizing the price impact users see when swapping. This pool creation may help to optimize trading pairs. Stickbug is one of few truly Hedera Native crosschain tokens, and at our core we wish to bring users to Hedera, and Saucerswap By creating this pool linked with Sauce, it would give users the opportunity to interact with Saucerswap with the hopes of bringing more retail to hedera, and SaucerSwap. Additionally the new pool will utilize SaucerSwap V2’s concentrated liquidity features, offering better returns for LPs. ### Motivation - The V2 pool will provide a more efficient and attractive option for LPs, Traders, and bring more retail from cross chain. ### Specification & Rationale - Token pairs - xSauce/Stickbug - Fee Tier - 0.30% - Why V2 - Some other details about Stickbug: - **Even More Information** ### Benefits (Pros) - **Enhanced Liquidity:** Improved trading conditions, reduced slippage, and encouragement of long-term investment in xSauce/Stickbug pool. - **Stronger Community Engagement:** Increased involvement and enthusiasm from the Stickbug community, fostering a more vibrant and active user base. - **Option for LARI Rewards** - **Improved Capital Efficiency:** Higher returns for LPs. - **Sustained Liquidity:** Ensures ongoing trading activity for xSauce/Stickbug. - **Improved market health for Stickbug** - **Incintivises transfer of retail from Solana/Base to Hedera/SaucerSwap.** ### Downside (Cons) - **Transition Effort:** Requires moving liquidity from current Pools to V2, whereas some is locked for several months, some is burned. - **V2 pools are at their core more technical demanding on the platform** - We however believe that these pools give us an opportunity to bring more users to SaucerSwap thereby offsetting these costs. - **Reduced Farm Weight for Other Pools:** The redistribution may decrease incentives for other pools, potentially impacting their liquidity. - **Concerns of liquidity fragmentation** - as Stickbug plans to be crosschain, with a primary focus on Hedera this is a risk. This however is mitigated by using hashport as a hardstop transition and native Base/Solana tokens which are paired to the Hashport token. Initial liquidity to Initialize the V2 pool - as much of xSauce/Stickbug is locked, there will need to be more liquidity brought, which we plan to do. - **Normalization of arbitrage opportunities.** ### Voting - **For:** Create the V2 xSauce/Stickbug pool with a 0.30% fee. - **Against:** Do not create the V2 xSauce/Stickbug pool. We hope that the SaucerSwap community votes in favor of this V2 pool to enhance Stickbug’s growth, impact, and ability to bring new users to Hedera.