Reallocation of Reward Weights from Hashport-Bridged V1 and V2 Pools

Title: Reallocation of Reward Weights from Hashport-Bridged V1 and V2 Pools

Author(s): SaucerSwap Labs

SaucerSwap Voting Interface: TBA

Related Discussions: Asset Expansion Strategy, Create & Incentivize Axelar USDC Pool on SaucerSwap V2, Create & Incentivize USDT0 Pools on SaucerSwap V2, SaucerSwap Incentives Realignment and HBAR Rewards Simplification, Expand & Incentivize LayerZero Markets on SaucerSwap

Submission Date: 2026-04-02


Summary

Hashport will be sunsetting operations on May 31, 2026. This RFC continues SaucerSwap’s bridge-diversification and asset-expansion strategy by reallocating incentives away from legacy Hashport markets and toward Axelar-aligned liquidity routes that better reflect the protocol’s forward bridge stack.

The proposal is emission-neutral. It does not increase aggregate incentives in either V1 or V2. Instead, it retires or redirects existing farm and LARI weights from Hashport-bridged markets where (i) better-supported alternatives already exist, (ii) SaucerSwap Labs has already prepared Axelar deployments, or (iii) recent governance has already established the preferred successor route.

In V1, Hashport farms for QNT, LCX, LINK, and WAVAX are replaced with Axelar markets, while the legacy WBTC[hts] and WETH[hts] farms are retired without direct replacements until V1 supports ERC-20 assets. In V2, the remaining unresolved Hashport LARI allocations for LINK, QNT, WAVAX, and WBNB are redirected to new Axelar markets, while no additional changes are proposed for routes already handled through recent governance or where duplication would unnecessarily fragment liquidity.

Important user notice: This RFC does not automatically migrate liquidity. Users holding LP positions or bridged assets associated with Hashport should plan to unwind and migrate well before May 31, 2026.

Abstract

Hashport’s planned sunset creates a clear need to finish a migration that SaucerSwap has already started. The DAO has already moved in this direction through the Asset Expansion Strategy, the axlUSDC/USDC initiative, the USDT0 pool initiative, and the earlier expansion of LayerZero markets. This RFC extends the same logic to the remaining incentivized Hashport markets: support bridge routes with forward relevance, maintain emissions discipline, avoid redundant liquidity fragmentation, and provide LPs with a clearer path toward successor markets.

Motivation

1. Complete an already-started transition

This RFC is best understood as a continuation of existing governance, not a fresh change in direction. SaucerSwap has already begun shifting toward Axelar and LayerZero routes through recent proposals and implementation work.

2. Keep incentive capital aligned with the forward bridge stack

As Hashport winds down, continuing to subsidize legacy routes beyond what is operationally useful would misalign incentives with the markets SaucerSwap expects users to rely on going forward.

3. Preserve emissions neutrality

The objective is not to add new rewards, but to redirect existing rewards more coherently. This keeps the aggregate reward budget unchanged while improving the fit between incentive spend and future market structure.

4. Avoid unnecessary liquidity fragmentation

Not every Hashport market should receive a new one-for-one replacement. In several cases, the appropriate successor route has already been introduced, or adding another bridge-specific market would split liquidity and routing depth across too many similar venues.

5. Respect current product constraints

For V1 in particular, the preferred WBTC and WETH successor routes currently depend on ERC-20 support that V1 does not yet offer. It is cleaner to retire those specific V1 farms and redistribute their weight through the fee-primary methodology than to force an inferior or redundant substitute.

Specification

V1 Farm Reallocation

This RFC proposes the following direct V1 farm changes:

Farm Before After Treatment
HBAR / WBTC[hts] 2.03% 0.00% Retire V1 farm; no direct replacement until V1 ERC-20 support
HBAR / WETH[hts] 2.28% 0.00% Retire V1 farm; no direct replacement until V1 ERC-20 support
HBAR / QNT[hts] 2.03% 0.00% Deprecated in favor of Axelar market
HBAR / QNT (Axelar) 0.00% 2.16% New target farm
HBAR / LCX[hts] 1.52% 0.00% Deprecated in favor of Axelar market
HBAR / LCX (Axelar) 0.00% 1.65% New target farm
HBAR / LINK[hts] 1.65% 0.00% Deprecated in favor of Axelar market
HBAR / LINK (Axelar) 0.00% 1.78% New target farm
HBAR / WAVAX[hts] 1.52% 0.00% Deprecated in favor of Axelar market
HBAR / AVAX (Axelar) 0.00% 1.65% New target farm

Additional implementation notes:

  • Only farm weights are reallocated. The existing LARI and DAO MasterChef rows remain unchanged.

  • The 34 allocPoints previously associated with HBAR / WBTC[hts] and HBAR / WETH[hts] are redistributed across the remaining V1 farms using the fee-primary methodology introduced in SaucerSwap Incentives Realignment and HBAR Rewards Simplification.

  • The resulting full V1 weight schedule is provided in Appendix C.

V2 LARI Reallocation

This RFC proposes the following direct V2 LARI weight changes:

Pool Current Weight Proposed Weight Treatment
LINK[hts] / HBAR 1.23% 0.00% Reallocate LARI weight to corresponding Axelar pool
HBAR / LINK (Axelar) 0.00% 1.23% Receives reallocated LARI weight
QNT[hts] / HBAR 1.59% 0.00% Reallocate LARI weight to corresponding Axelar pool
HBAR / QNT (Axelar) 0.00% 1.59% Receives reallocated LARI weight
WAVAX[hts] / HBAR 0.61% 0.00% Reallocate LARI weight to corresponding Axelar pool
HBAR / AVAX (Axelar) 0.00% 0.61% Receives reallocated LARI weight
WBNB[hts] / HBAR 0.51% 0.00% Reallocate LARI weight to corresponding Axelar pool
HBAR / BNB (Axelar) 0.00% 0.51% Receives reallocated LARI weight

Additional implementation notes:

  • These changes apply only to the affected V2 LARI SAUCE weights.

  • No additional LARI emissions are introduced.

  • The final target V2 weight schedule remains at 100.00% in aggregate and is provided in Appendix D.

  • New Axelar target pool contract IDs are listed as TBD until pool creation and confirmation.

Markets Explicitly Left Unchanged or Already Addressed

This RFC does not attempt to create a fresh one-for-one replacement for every historical Hashport market. The following treatment is intentional:

  • USDC[hts] / USDC: no additional change in this RFC because USDC / USDC.axl was already added through prior governance.

  • USDC[hts] / USDT[hts] and USDT[hts] / HBAR: already addressed through the recent USDT0 / USDC and USDT0 / HBAR proposal.

  • WETH[hts] / HBAR, WBTC[hts] / HBAR, USDC[hts] / WETH[hts], and USDC[hts] / WBTC[hts] in V2: no additional change in this RFC because LayerZero counterparts already exist.

  • USDC[hts] / HBAR: no Axelar replacement is proposed because an additional USDC.axl / HBAR market would be redundant and would likely increase fragmentation of core USDC routing liquidity.

Axelar Readiness

Axelar’s interchain deployer / ITS model allows assets to be made bridgeable without waiting for a centralized legacy bridge listing process. SaucerSwap Labs has already prepared the following assets under that model:

These assets provide the basis for the Axelar replacement markets proposed in this RFC.

Activation

Upon ratification:

  • Create any missing Axelar target pools required for execution.

At the start of the next epoch from when this proposal is ratified:

  • Apply the V1 farm reweights described above.

  • Apply the V2 LARI reweights described above.

No other reward streams are modified by this RFC.

Rationale and Benefits

Bridge diversification with continuity

This RFC is consistent with the broader governance direction already established by the DAO. It continues the move toward a more diversified bridge stack without abandoning the principle of staged, measured transitions.

Better alignment between incentives and future usage

As users migrate away from Hashport routes, reward support should increasingly follow the venues expected to matter going forward. The proposed reweights move incentive capital toward markets with clearer long-term utility.

Selective replacement rather than blanket duplication

A one-for-one replacement for every legacy market would not be optimal. In some cases the best successor market already exists. In other cases, creating another market would split liquidity across too many similar venues. This RFC therefore prefers targeted replacement over automatic duplication.

V1 compatibility where available

One advantage of the Axelar routes proposed here is that they arrive on Hedera as HTS-compatible assets, which makes them usable in V1. That is why assets such as LINK, LCX, QNT, and WAVAX can be migrated in V1 now, while WBTC and WETH remain deferred pending ERC-20 support.

Clearer migration path for LPs

A defined reward-transition plan reduces ambiguity for LPs. Instead of leaving markets subsidized by inertia, the proposal gives the community an explicit map of which legacy routes are being retired, which are being replaced, and which were already addressed in prior governance.

User Migration and Execution Notes

  • Users should plan to migrate Hashport-linked liquidity before May 31, 2026.

  • Axelar / Squid flows currently rely on an ECDSA-compatible wallet flow for bridging.

  • On Hedera, the relevant Axelar-delivered assets are handled as HTS-compatible assets, which is what makes the V1 replacements in this RFC viable.

  • This RFC changes incentives only. It does not itself execute user migrations, bridge user balances, or remove liquidity on behalf of LPs.

Benefits (Pros)

  • Continues the bridge-diversification strategy already approved or initiated through recent governance.

  • Maintains aggregate emissions neutrality in both V1 and V2.

  • Reduces dependency on a bridge route that is being sunset.

  • Redirects incentives toward markets with clearer forward relevance.

  • Avoids creating redundant pools where LayerZero, axlUSDC, or USDT0 successor routes already exist.

  • Uses Axelar HTS compatibility to preserve V1 coverage where that is technically feasible.

Downside (Cons)

  • LPs in deprecated Hashport markets will need to migrate positions.

  • Some liquidity fragmentation may persist during the transition period.

  • V1 still lacks direct WBTC and WETH replacements until ERC-20 support is added.

  • New Axelar markets may take time to bootstrap depth and prove durable usage.

  • Any migration away from a longstanding bridge route creates some operational overhead for users and the protocol.

Voting Options

  • YES — Approve

Approve the V1 and V2 reward reallocations described in this RFC, authorize creation of any missing Axelar replacement pools or farm metadata required for execution, retire the specified legacy Hashport incentives, and apply the new weights at the start of the next epoch after ratification.

  • NO — Reject

Do not create the new Axelar replacement pools described in this RFC and retain the current incentive configuration for the affected legacy Hashport markets.

  • ABSTAIN

Register neutrality without affecting the final outcome.


Appendix

Appendix A — V1 Legacy Hashport Markets and Treatment

Legacy V1 Market Treatment Replacement / Note
WETH[hts] / HBAR Retire V1 farm Do not replace until V1 supports ERC-20 assets
QNT[hts] / HBAR Redirect farm weight HBAR / QNT (Axelar)
WBTC[hts] / HBAR Retire V1 farm Do not replace until V1 supports ERC-20 assets
WAVAX[hts] / HBAR Redirect farm weight HBAR / AVAX (Axelar)
LCX[hts] / HBAR Redirect farm weight HBAR / LCX (Axelar)
LINK[hts] / HBAR Redirect farm weight HBAR / LINK (Axelar)

Appendix B — V2 Legacy Hashport Markets and Treatment

Legacy V2 Market Treatment Replacement / Note
USDC[hts] / USDC No additional change in this RFC axlUSDC / USDC already added via prior governance
USDC[hts] / USDT[hts] Already addressed outside this RFC USDT0 / USDC recently approved
WETH[hts] / HBAR No additional change in this RFC LayerZero WETH / HBAR already exists
WBTC[hts] / HBAR No additional change in this RFC LayerZero WBTC / HBAR already exists
USDC[hts] / HBAR No additional change in this RFC axlUSDC / HBAR would be redundant and fragment liquidity
LINK[hts] / HBAR Redirect LARI weight HBAR / LINK (Axelar)
QNT[hts] / HBAR Redirect LARI weight HBAR / QNT (Axelar)
USDT[hts] / HBAR Already addressed outside this RFC USDT0 / HBAR recently approved
WAVAX[hts] / HBAR Redirect LARI weight HBAR / AVAX (Axelar)
USDC[hts] / WBTC[hts] No additional change in this RFC LayerZero USDC / WBTC already exists
USDC[hts] / WETH[hts] No additional change in this RFC LayerZero USDC / WETH already exists
WBNB[hts] / HBAR Redirect LARI weight HBAR / BNB (Axelar)

Appendix C — V1 Farm Weights (Before vs. After)

Farm Before After
USDC-SAUCE 2.03% 2.16%
HBAR-SAUCE 45.56% 46.07%
HBAR-USDC 13.83% 14.97%
HBAR-HST 1.02% 1.02%
HBAR-WBTC[hts] 2.03% 0.00%
HBAR-WETH[hts] 2.28% 0.00%
HBAR-QNT[hts] 2.03% 0.00%
HBAR-QNT (Axelar) 0.00% 2.16%
HBAR-XSAUCE 2.16% 2.28%
SAUCE-XSAUCE 0.89% 0.89%
HBAR-LCX[hts] 1.52% 0.00%
HBAR-LCX (Axelar) 0.00% 1.65%
HBAR-LINK[hts] 1.65% 0.00%
HBAR-LINK (Axelar) 0.00% 1.78%
HBAR-GRELF 0.63% 0.63%
HBAR-WAVAX[hts] 1.52% 0.00%
HBAR-AVAX (Axelar) 0.00% 1.65%
HBAR-KARATE 1.52% 1.65%
HBAR-DOVU 5.84% 6.22%
HBAR-SENTX 0.63% 0.63%
HBAR-PACK 2.79% 3.05%
HBAR-DAVINCI 1.14% 1.27%
HBAR-BSL 1.40% 1.52%
HBAR-STEAM 0.63% 0.76%
HBAR-HSUITE 3.43% 3.68%
HBAR-DINO 0.00% 0.00%
HBAR-HAI 0.00% 0.00%
HBAR-GIB 3.05% 3.30%
HBAR-KBL 1.14% 1.27%
HBAR-GC 1.27% 1.40%
UNALLOCATED 0.00% 0.00%

Appendix D — V2 Final Target LARI Weights

Pair Contract Pool Before LARI Weight After LARI Weight
0.0.3948521 USDC[hts]-USDC 1.50% 1.50%
0.0.3964782 USDC[hts]-USDT[hts] 0.97% 0.00%
TBD USDT0-USDC 0.00% 0.97%
0.0.3964790 SAUCE-XSAUCE 2.16% 2.16%
0.0.3961531 HBAR-HBARX 3.74% 3.74%
0.0.3964795 WBTC[hts]-HBAR 1.49% 1.49%
0.0.3964800 WETH[hts]-HBAR 1.22% 1.22%
0.0.3951117 SAUCE-HBAR 16.82% 16.82%
0.0.3964827 xSAUCE-HBAR 1.06% 1.06%
0.0.3964834 WAVAX[hts]-HBAR 0.61% 0.00%
TBD HBAR-AVAX (Axelar) 0.00% 0.61%
0.0.3964837 QNT[hts]-HBAR 1.59% 0.00%
TBD HBAR-QNT (Axelar) 0.00% 1.59%
0.0.3964840 LINK[hts]-HBAR 1.23% 0.00%
TBD HBAR-LINK (Axelar) 0.00% 1.23%
0.0.3964804 USDC-HBAR 20.53% 20.53%
0.0.3964808 USDC[hts]-HBAR 1.78% 1.78%
0.0.3964809 USDT[hts]-HBAR 1.14% 0.00%
0.0.10414792 USDT0-HBAR 0.00% 1.14%
0.0.3964821 USDC[hts]-WBTC[hts] 0.77% 0.77%
0.0.3964825 USDC[hts]-WETH[hts] 0.54% 0.54%
0.0.3964860 USDC-SAUCE 1.70% 1.70%
0.0.6071074 WBNB[hts]-HBAR 0.51% 0.00%
TBD HBAR-BNB (Axelar) 0.00% 0.51%
0.0.5328590 DOVU-HBAR 8.98% 8.98%
0.0.6071041 KARATE-HBAR 1.66% 1.66%
0.0.4601632 JAM-HBAR 2.39% 2.39%
0.0.6071911 CARAT-USDC 0.34% 0.34%
0.0.9774523 USDC-WETH (LayerZero) 2.09% 2.09%
0.0.10018365 HBAR-WETH (LayerZero) 7.66% 7.66%
0.0.10093026 HBAR-WBTC (LayerZero) 6.13% 6.13%
0.0.10092996 USDC-WBTC (LayerZero) 3.20% 3.20%
0.0.3964855 HBAR-HST 0.40% 0.40%
0.0.8315114 HBAR-BONZO 1.62% 1.62%
0.0.6071119 HBAR-PACK 2.07% 2.07%
0.0.6126395 HBAR-GRELF 1.06% 1.06%
0.0.4129330 HBAR-CLXY 0.63% 0.63%
0.0.6078459 HBAR-HLQT 0.46% 0.46%
0.0.6078473 USDC-HCHF 0.45% 0.45%
0.0.10387648 USDC-USDC.axl 1.50% 1.50%