RFC - HBAR incentives to be deployed on SaucerSwap pools associated with HCHF and HLQT

Request for Comment
1

HBAR incentives to be deployed on SaucerSwap pools associated with HCHF and HLQT.

This proposal builds on the discussions from the RFC: Activating/Adapting LARI for SaucerSwap pools:

  1. For HCHF:

a. V2_USDC/HCHF SaucerSwap | Leading Crypto Trading Protocol on Hedera - Fast, Secure Swaps with Low Fees. Stake & Earn.

b. V2_HBAR/HCHF SaucerSwap | Leading Crypto Trading Protocol on Hedera - Fast, Secure Swaps with Low Fees. Stake & Earn.

  1. For HLQT:

a. V2_HBAR/HLQT SaucerSwap | Leading Crypto Trading Protocol on Hedera - Fast, Secure Swaps with Low Fees. Stake & Earn.

The distribution of the amount of HBAR assigned to encourage the use of pools will be adjustable based on the liquidity of the pools, assigning a higher percentage to the most used pools or those with greater liquidity.

Title: HBAR incentives to be deployed on SaucerSwap pools associated with HCHF and HLQT.

Author(s): Cryptonomy, GlobeBit & HLiquity Team

SaucerSwap Voting Interface: na

Related Discussions: Create V2 Pool for HBAR/HCHF 0.30% (Reproposal Due to Updated Criteria)

Submission Date: December 27, 2024

Introduction:

This proposal focuses on incentivizing liquidity provision for the three HLiquity-related V2 pools. The incentives will be in HBAR and the goal is to increase Liquidity for HCHF and HLQT related V2 pools.

Motivation:

Stablecoins are crucial for the Hedera ecosystem, providing stability and fostering broader DeFi adoption. HCHF is an overcollateralized stablecoin backed by HBAR, offering a reliable asset for users. Additionally, HLiquity, the protocol behind HCHF, is the first decentralized borrowing protocol on Hedera, allowing users to draw interest-free loans against HBAR in the form of HCHF, a Swiss Franc stablecoin.

HLQT captures protocol revenue, rewarding users for their participation in the ecosystem.

Benefits:

  • Supports stablecoin liquidity on Hedera, crucial for DeFi adoption.
  • Encourages the use and adoption of HCHF, enhancing the ecosystem’s stability.
  • Helps maintain a diverse range of liquidity pools within the SaucerSwap ecosystem.
  • Rewarding all early protocol participants and those who are participating in staking and as liquidity providers on SaucerSwap

Links:

Website https://hliquity.org/

Documentation https://docs.hliquity.org/

Sentinel Report HCHF Sentinel: Sentinel

X: x.com

Voting:

Yes: We support the implementation of HBAR incentives on SaucerSwap V2 pools associated with HCHF and HLQT.

No: We do not support these incentives.

6 Likes
2

Where are the HBAR for this proposal coming from? From the team proposing, or from the HBAR Foundation grant SaucerSwap Labs been using?

How much HBAR?
For how long?

Also, you wrote Sentinel Report HCHF Sentinel without actually linking to it.

3

from the HBAR Foundation grant SaucerSwap Labs, aprox equivalent to 50K USD

2 Likes
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And where would that allocation come from? How would the emissions weights change?

1 Like
5

Hey, how do these incentives help To achieve these benefits?
Use and adoption of Hchf?
Reward early protocol participants?

There is certainly a liquidity bottleneck here in these pools that impacts the performance of the protocol…how will these incentives leave lasting impact to the depth of these pools after incentives runs dry?

1 Like
6

since HCHF is minted with HBAR as collateral it would help create liquidity and help settling arbitrage and peg-balancing opportunities faster and more efficient and by doing so creating new opportunities for everyone monitoring.

2 Likes
7

And where would this allocation come from? How would the weights of the emissions change?

The allocation is given directly by HF, and the weights or percentages will be determined by the volume and liquidity of each pool in such a way that the most active pools are supported.

8

Okay, that doesnt actually answer the specific question I had in mind, so I’ll asked in another way.

How do you propose this table (specifically the HBAR columns) to change to accommodate your proposal for HBAR LARI rewards?
And how would you plan to justify the changes from the other liquidity pools?

9

I support the proposal. LP Incentives for the HLiquity-related pools will attract more Liquidity. More liquidity in V2_USDC/HCHF and V2_HBAR/HCHF will enable better Arbitration (HCHF becoming more stable) and Hedera Ecosystem integration of HCHF.

2 Likes
10

@nubeasado can you jump in here? THX

1 Like
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So I got clarification from Nube, but I do want to run it by you to make sure everyone is on the same page.

So HLiquidity got grant funds directly by the HBAR Foundation, and are planning to use those funds to support their LARI initiative.

These Funds are completely separate from the SaucerSwap grant they got for the current HBAR LARI emissions?

Are both of these statements correct?

Second part, duration.

V2 LARI Campaign Creation and Amendment: The Liquidity-Aligned Reward Initiative (LARI) allows liquidity providers to earn additional incentives. Proposals for creating or amending LARI campaigns require DAO approval. Each proposal must specify the duration of the campaign and the allocation of token(s) per epoch.

I presume an even distribution of HBARs per Epoch, but my question to you is for how many epochs (or weeks, or months)?

Edit: I know I had this reply to @GlobeBit but it didnt end up as a reply.

12

The Grant is between The HBAR Foundation and SacuerSwap. The purpose is to support the 3 mentioned pools related to HLiquity. This grant is a follow-up of the RFC by THF for Money markets, which was updated.

The incentives are expected to last for 12 Months.

The friends from SaucerSwap should also be able to answer, as they signed the form.

3 Likes
13

I added a slightly updated proposal and included the fact that the incentives are from the THF Grant and will not affect LARI Weights. Furthermore, I added the duration of 12 Months, cleaned up the Sentinel Link and shortened the title to git the SaucerSwap Governance Structure. I think this proposal is beneficial for everyone in the ecosystem and should, therefore, pass. THX for the support. Proposal: HBAR Incentives for HCHF & HLQT V2 Pools

1 Like
14

hey @H-Barbara, this is correct yeap.

It is a specific grant for HBAR LARI rewards for HLiquity pools

1 Like