SAUCE Buyback Revision, Emissions Realignment, & HBAR Reward Extension

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1

SAUCE Buyback Revision, Emissions Realignment, & HBAR Reward Extension

Title: SAUCE Buyback Revision, Emissions Realignment, & HBAR Reward Extension
Author(s): SaucerSwap Labs
SaucerSwap Voting Interface: TBA
Previous Discussions: RFC thread — SAUCE Buyback Allocation Update: Balancing Rewards, Burn, and Growth
Submission Date: 21 July 2025

1 . Introduction

SaucerSwap Labs proposes an integrated update to the protocol’s incentive framework that

  1. Realigns Masterchef V1 : V2 emissions to 44.44% : 55.56% for both HBAR and SAUCE;
  2. Cuts the remaining THF-granted HBAR emissions by 87.55% while extending their life by seven epochs (to 3 Nov 2025);
  3. Reallocates SAUCE buybacks from 100% xSAUCE to a 65% xSAUCE / 35% protocol‑owned liquidity (POL) + Incentive Reserve, with the entire 35% routed to farms and LARI during a stabilization period; and
  4. Updates the weighting schemes of farms and V2 pools receiving LARI rewards, aligning reward distribution more closely with capital efficiency, as measured by volume-to-TVL ratios.

Collectively, these measures mitigate a decline in rewards, keep LP yields competitive, and create a flexible emissions buffer—all while reinforcing circular deflationary feedback within the ecosystem.

2 . Background

  • HBAR grant status. Of the original 23 million HBAR liquidity‑mining grant (referred to as ‘Incentives Campaign’), ≈ 851,820 HBAR will have yet to be distributed as of epoch 45 (28 Jul 2025).
  • Current emissions. Masterchef emits 0.747 HBAR s⁻¹ (~ 903,571 HBAR/epoch), ending the grant halfway through epoch 46 under status‑quo parameters.
  • SAUCE buybacks. 100% of bought-back SAUCE is currently auto‑compounded into xSAUCE, leaving no allocation for POL or tactical incentives. Annualized buybacks (FTM) are projected to be $1,594,761.

Industry peers (GMX, PancakeSwap, Osmosis) have shown that balancing staking rewards with strategic liquidity and growth reserves stabilizes token velocity and deepens liquidity. This proposal adapts these principles to SaucerSwap’s tokenomics model.

3 . Proposal Overview

3.1 Emission Realignment

Parameter Current Proposed Δ
HBAR/second 0.747 0.093 −87.55%
SAUCE/second 2.114 Unchanged 0%
V1 : V2 split (HBAR & SAUCE) 51.48% : 48.52% 44.44% : 55.56% ↑ V2 weight

Resulting per‑epoch flows (epoch length = 14 days):

Destination HBAR/epoch SAUCE/epoch
V1 Farms 50,000 1,136,486
V2 (LARI + DAO) 62,500 1,420,722
Total 112,500 2,557,208
  • Campaign extension. 851,820 HBAR ÷ 112,500 HBAR = 7 epochs, plus a buffer to account for any rounding errors or other inaccuracies that might arise. The grant therefore lasts through epoch 52, concluding 3 Nov 2025.
  • LARI boost. The V2 allocation of SAUCE is split 33% : 67% between LARI and DAO treasury, raising LARI rewards to 450,000 SAUCE/epoch (+ 20%).

3.2 Revised SAUCE Buyback Allocation

Destination Allocation Purpose
xSAUCE 65% Maintain competitive single‑sided staking APR (projected > 5 %).
POL + Incentive Reserve 35% Top‑up farm/LARI rewards during a stabilization period following the reduction in HBAR emissions; deepen key liquidity pools in the future.

Annualized at current volumes:

xSAUCE: $1,036,595

POL + Incentive Reserve: $558,166

Stabilization period. Until either (i) the 7‑day avg. V1 and V2 pool APRs return to ≥ 30% and ≥ 82%, respectively, or (ii) 90 days elapse, 100% of the 35% POL + Incentive Reserve is diverted to farms (15.56% of buybacks) and LARI (19.44% of buybacks).

3.3 Updated Weighting Schemes

Capital Efficiency Alignment. The weighting schemes for farms and V2 pools receiving LARI rewards have been updated to align reward distributions more closely with capital efficiency, as determined by volume-to-TVL ratios. Refer to Figures 1 and 2 in Appendix A for detailed updated weights.

4 . Rationale

  1. Extend Incentive Runway. A seven‑epoch runway smoothens the yield curve, cushioning LPs against an abrupt rewards cliff.
  2. Protect LP Yields. Diverting 35% of buybacks to farms/LARI, realigning Masterchef V1 : V2 emissions, and re-weighting farms/LARI offsets much of the HBAR reduction—projected V1 yields fall 25% instead of 40%, V2 yields fall just 6% instead of 45%.
  3. Deepen Liquidity. Once the stabilization period ends, the same 35% POL + Incentive Reserve can be re-allocated to growing key liquidity pools and incentivizing other areas of the protocol, lowering slippage and ensuring rewards remained aligned.
  4. Long-term sustainability. The 4% burn allocation (discussed in the original buyback proposal) was removed because buybacks are better allocated to POL and incentives to deepen liquidity and sustain LP yields. This approach creates circular deflationary feedback by redirecting bought-back SAUCE into the protocol to reward active participation. Conversely, the burn mechanism might only temporarily support protocol endeavors but increase reliance on passive and speculative holders, risking fundamental exposure to broader market sentiment cycles.
  5. Conserve Treasury. No Treasury draw‑downs or increase in SAUCE emission rate are required; this model uses existing grant balances and bought-back SAUCE.

5 . Benefits to the DAO & Community

  • Smoother Yield Curve. The seven-epoch extension in which HBAR is emitted at a reduced rate results in a smoother yield curve, supporting LP retention.
  • Competitive APRs. Buyback top‑ups blunt the impact of the HBAR cut, keeping SaucerSwap yields competitive and sustainable.
  • Liquidity Depth & Price Resilience. Future POL growth reduces slippage and drives volume.
  • Treasury Sustainability. Using market‑bought SAUCE avoids new dilution and preserves treasury reserves for future initiatives.

6 . Risks & Mitigations

Risk Mitigation
xSAUCE APR drops xSAUCE APR still projects > 5%; DAO may redirect part of the 35% flow back to xSAUCE by simple majority.
POL vs. Incentive tug‑of‑war Track POL and liquidity incentive balances; SaucerSwap Labs commits to transparent reporting in public channels regarding efficacy and distribution.

7 . Communication & Transparency

  • Transparent Documentation. Updated tokenomics data will be published in the SaucerSwap Docs.
  • Real‑time Reporting. On‑chain analytics for buybacks will continue to be displayed in Discord via the Buyback Bot.
  • Comms. Channels. LARI and farm specifications will continue to be communicated in Discord and on X.

8. Conclusion

This proposal strategically updates SaucerSwap’s incentive framework to extend liquidity incentives, realign emissions, and optimize SAUCE buybacks, thereby balancing protocol-owned liquidity and yields without token dilution. The refined weighting schemes further align rewards with capital efficiency, reinforcing a sustainable, circular token economy that supports ecosystem growth, liquidity depth, and competitive yields for liquidity providers.

We respectfully request the community’s support.

9 . Voting Options

  • For — Implement the reduced HBAR emission rate (0.093 HBAR s⁻¹), new 44.44 % : 55.56 % V1 : V2 split, 65 % xSAUCE / 35 % POL + Incentive Reserve buyback routing, and updated farm/LARI weighting schemes.
  • Against — Retain current 0.747 HBAR s⁻¹ emission rate, existing V1 : V2 weights, 100 % xSAUCE buyback allocation, and farm/LARI weighting schemes.
  • Abstain — No position on this proposal.

Appendix A

Figure 1 — Updated Farm Weights

Pool Volume/TVL Current Weight Proposed Weight Change
SAUCE/HBAR 0.08 48.33% 48.56% 0.47%
USDC/HBAR 1.50 15.71% 15.75% 0.28%
HBAR/BSL 0.38 1.21% 1.26% 4.29%
HBAR/XSAUCE 0.08 4.83% 4.50% -6.89%
HBAR/PACK 0.16 2.90% 2.88% -0.68%
HBAR/DAVINCI 0.01 1.21% 1.13% -6.89%
SAUCE/XSAUCE 0.02 1.45% 1.35% -6.89%
WETH[hts]/HBAR 0.43 2.17% 2.48% 13.81%
HST/HBAR 0.10 2.42% 2.03% -16.20%
GRELF/HBAR 0.07 1.45% 1.35% -6.89%
QNT[hts]/HBAR 0.58 1.21% 1.35% 11.74%
STEAM/HBAR 0.13 0.72% 0.68% -6.89%
DOVU/HBAR 0.76 0.72% 0.90% 24.15%
WBTC[hts]/HBAR 0.77 2.42% 2.57% 6.15%
LCX[hts]/HBAR 0.19 1.45% 1.35% -6.89%
WAVAX[hts]/HBAR 0.42 0.72% 0.77% 5.53%
USDC/SAUCE 0.50 3.09% 3.24% 4.75%
HAI/HBAR 0.11 0.97% 0.81% -16.20%
HSUITE/HBAR 0.98 0.72% 0.86% 17.94%
LINK[hts]/HBAR 0.48 0.97% 1.04% 7.08%
KARATE/HBAR 0.61 2.17% 2.30% 5.53%
DINO/HBAR 0.20 1.21% 1.04% -14.33%
CLXY/HBAR 0.07 0.72% 0.59% -19.30%
JAM/HBAR 1.12 0.48% 0.63% 30.36%
SENTX/HBAR 0.05 0.72% 0.63% -13.09%

Figure 2 — Updated LARI Weights

Pool Fee Tier Volume/TVL Current SAUCE Weight Proposed SAUCE Weight Change Current HBAR Weight Proposed HBAR Weight Change
USDC/HBAR 0.15% 6.54 18.00% 19.00% 5.56% 14.46% 15.00% 3.76%
HBARX/HBAR 0.15% 0.06 7.00% 7.00% 0.00% 4.34% 4.50% 3.76%
SAUCE/HBAR 0.30% 1.55 19.00% 19.00% 0.00% 18.31% 19.00% 3.76%
USDC/USDC[hts] 0.05% 1.70 6.00% 5.55% -7.50% 5.78% 6.00% 3.75%
GRELF/HBAR 0.30% 0.11 0.00% 0.00% -% 0.48% 0.50% 3.73%
SAUCE/XSAUCE 0.15% 0.66 3.00% 2.50% -16.67% 1.93% 1.93% 0.10%
PACK/HBAR 0.30% 1.51 0.00% 0.00% -% 2.89% 2.89% -0.03%
WBTC[hts]/HBAR 0.15% 1.93 5.00% 5.00% 0.00% 2.89% 2.89% -0.03%
DOVU/HBAR 1.00% 1.86 0.00% 0.80% -% 0.96% 0.96% -0.41%
USDC[hts]/USDT[hts] 0.05% 1.74 4.00% 3.50% -12.50% 3.86% 3.86% 0.13%
KARATE/HBAR 0.30% 0.33 0.00% 0.50% -% 0.96% 0.96% -0.41%
PACK/XPACK 0.15% 0.73 0.00% 0.00% -% 0.00% 0.50% -%
WETH[hts]/HBAR 0.15% 2.59 3.00% 3.50% 16.67% 2.89% 3.50% 21.07%
CLXY/HBAR 0.30% 0.16 0.00% 0.00% -% 0.96% 0.50% -48.13%
XSAUCE/HBAR 0.30% 0.70 3.00% 2.50% -16.67% 2.89% 3.00% 3.77%
USDC[hts]/DAI[hts] 0.05% 0.60 2.00% 0.00% -100.00% 1.93% 0.00% -100.00%
USDC[hts]/HBAR 0.15% 3.66 7.00% 7.50% 7.14% 6.75% 7.00% 3.75%
HLQT/HBAR 0.30% 0.07 0.00% 0.00% -% 2.52% 1.70% -32.48%
QNT[hts]/HBAR 0.30% 2.74 3.50% 4.00% 14.29% 2.41% 3.00% 24.48%
USDT[hts]/HBAR 0.15% 2.90 5.00% 5.15% 3.00% 4.82% 5.00% 3.76%
USDC/HCHF 0.05% 0.11 0.00% 0.00% -% 2.03% 2.03% 0.00%
USDC[hts]/WBTC[hts] 0.15% 2.78 2.00% 2.50% 25.00% 1.93% 2.00% 3.73%
HST/HBAR 0.30% 0.50 1.00% 0.00% -100.00% 0.96% 1.00% 3.73%
LINK[hts]/HBAR 0.30% 2.88 2.00% 2.50% 25.00% 1.93% 2.25% 16.70%
JAM/HBAR 1.00% 2.65 0.00% 0.50% -% 0.96% 1.05% 8.54%
USDC/SAUCE 0.30% 5.75 4.00% 4.00% 0.00% 3.86% 4.00% 3.76%
WAVAX[hts]/HBAR 0.30% 0.56 1.50% 1.00% -33.33% 1.45% 1.45% 0.28%
WETH[hts]/USDC[hts] 0.15% 2.04 1.00% 1.50% 50.00% 0.96% 1.00% 3.73%
WBNB[hts]/HBAR 0.30% 4.05 1.50% 1.75% 16.67% 1.45% 1.50% 3.81%
DAI[hts]/HBAR 0.15% 5.13 1.50% 0.00% -100.00% 1.45% 0.00% -100.00%
USDC/CARAT 0.15% 3.87 0.00% 0.75% -% 0.96% 1.00% 3.73%
HBAR/HCHF 0.30% 1.93 0.00% 0.00% -% 0.04% 0.04% 0.04%
2

I could argue about some of the margins (like the a few points from this or that farm/LARI weight, or even the proportions of the Buybacks/POL+ incentives), but overall I like it.

The big concern that was brought up by a few people was the HBAR emissions cliff and it seems this proposal addresses it.

3

I get the need to extend the runway. Why aren’t fees being considered to cover some or all of this? What is the competitive advantage SS possesses in terms of low fees compared to other dexs? Couldn’t an approach where more sauce was needed to swap to support rewards ensure a more balanced sauce utility structure? The no front running thing should be a big differentiator especially in a cross chain perspective even if fee gap closed?

Active engagement is Important, but juicy passive APY can attract long term holders and fingers crossed there will be more users coming to a regulated crypto space(many who might not be ready to LP). Highly attractive APY is effective in keeping sauce off the market

Speaking of that APY, what was the xsauce apy last year? Distribution of APY is not symmetrical so, a day with higher buyback skews average higher more than a low apy day would skew the average downward. So, wondering how that 5% projection was determined. Median a better indicator of the expected APY than average for this type of distribution.

Finally, As an xsauce holder, this proposal is a tough pill to swallow, especially after not being delivered the planned community pool benefits. I advocate for a more balanced approach to ensure long term sustainable reward APYs without further diminishing the value and promise of xsauce.

4

Hi @SmuggMuggler, thank you for the feedback. To address your points in order:

  1. Increasing swap fees to fund rewards would make SaucerSwap less competitive in the current DeFi landscape—it’s more difficult to rely on Hedera’s low fees with the normalization of low network fees on Ethereum and EVM chains post-EIP-4844 upgrade. It’s now a direct competition between dexes in terms of fees and the network cost to transact is less relevant. The other option you proposed is integrating SAUCE into the protocol’s fee system (for example, if it were required to swap). This requires extensive smart contract development and adds complexity, creating barriers to user entry. The protocol’s unique advantage, such as preventing front-running, would be diluted if fee competitiveness and simplicity are compromised.

  2. While attractive passive APRs are beneficial for long-term holders, active engagement through liquidity provision is foundational to SaucerSwap’s operational sustainability. Prioritizing LPs ensures deeper pools, higher trade volumes, and consequently greater buybacks, thereby supporting single-sided staking APRs indirectly. Without a strong LP base, the protocol’s overall health and sustainability would be jeopardized.

  3. The single-sided staking figures represent a forward twelve-month projection based on last week’s trading volume and core metrics. After implementing the proposed changes (35% diverted to POL + incentives), we have high confidence that the remaining 65% of buybacks auto-compounded into xSAUCE will yield an APR greater than 5%, based on the annualization of recent weekly data.

Prioritizing liquidity provision and POL in response to reduced HBAR emissions is necessary to avoid a significant reward drop-off. This balanced approach ensures the long-term viability and competitiveness of both liquidity and staking rewards, ultimately preserving the function xSAUCE serves in the ecosystem.

1 Like
5

Just wondering.. with all these changes would it be possible to lower the “interface fee”?

6

Hi Larry,
Thanks for your response.
It feels like either there isn’t a lot of flexibility or you have made the decisions for us.

If fee adjustment isn’t an option then that should be in the proposal so we understand why the ask is framed like it is.

I remain interested in seeing a chart of fees/ competitive advantages of saucerswap to other dexs. And in seeing how xsauce apy is projected to be above 5%….last weeks buybacks were much higher than typical, think you ought provide a range of where the ApY is likely to be.

This would be more agreeable, If there was a greater commitment to rebuilding the xsauce APY once things stabilize

7

Thank you for the feedback, @bangus. Reducing the interface fee has always been a priority, and the adjustments outlined in this proposal do make it viable. We’ve updated the proposal accordingly—please see below:

1 . Introduction

SaucerSwap Labs proposes an integrated update to the protocol’s incentive framework that

  1. Lowers the interface fee from 0.4% to 0.25%—a 37.5% reduction;
  2. Realigns Masterchef V1 : V2 emissions to 44.44% : 55.56% for both HBAR and SAUCE;
  3. Cuts the remaining THF-granted HBAR emissions by 87.55% while extending their life by seven epochs (to 3 Nov 2025);
  4. Reallocates SAUCE buybacks to a 45.5% xSAUCE / 30% Development Fund / 24.5% Protocol‑Owned Liquidity (POL) + Incentive Reserve, with the entire 24.5% routed to farms and LARI during a stabilization period; and
  5. Updates the weighting schemes of farms and V2 pools receiving LARI rewards, aligning reward distribution more closely with capital efficiency, as measured by volume-to-TVL ratios.

Collectively, these measures mitigate an HBAR rewards cliff, lower fees for our users, keep LP yields competitive, and create a flexible emissions buffer—all while reinforcing circular deflationary feedback of SAUCE within the ecosystem.

2 . Background

  • HBAR grant status. Of the original 23 million HBAR liquidity‑mining grant (referred to as ‘Incentives Campaign’), ≈ 851,820 HBAR will have yet to be distributed as of epoch 45 (28 Jul 2025).
  • Current emissions. Masterchef emits 0.747 HBAR s⁻¹ ( 903,571 HBAR/epoch with some HBAR retained for subsequent epochs**)**, ending the grant halfway through epoch 46 under status‑quo parameters.
  • SAUCE buybacks. 100% of bought-back SAUCE is currently auto‑compounded into xSAUCE, leaving no allocation for POL, development, or tactical incentives. Annualized buybacks (FTM) are projected to be $1,594,761. Buybacks are sourced from the 1/6 protocol fee, HBAR native staking rewards, and Masterchef emissions.
  • Interface Fee. SaucerSwap Labs’ interface fee is currently 0.4%, lower than HashPack’s 0.7% fee but considerably higher than Uniswap Labs’ fee of 0.15%.

Industry peers (GMX, PancakeSwap, Osmosis) have shown that balancing staking rewards with strategic liquidity and growth reserves stabilizes token velocity and deepens liquidity. This proposal adapts these principles to SaucerSwap’s tokenomics model, enabling lower interface fees and a more integrated revenue model.

3 . Proposal Overview

3.1 Reduced Interface Fee

The 0.4% fee incurred when swapping in SaucerSwap Labs’ interface is lowered to 0.25%. This is a 37.5% reduction.

3.1 HBAR Emission Realignment

Parameter Current Proposed Δ
HBAR/second 0.747 0.093 −87.55%
SAUCE/second 2.114 Unchanged 0%
V1 : V2 split (HBAR & SAUCE) 51.48% : 48.52% 44.44% : 55.56% ↑ V2 weight

Resulting per‑epoch flows (epoch length = 14 days):

Destination HBAR/epoch SAUCE/epoch
V1 Farms 50,000 1,136,486
V2 (LARI + DAO) 62,500 1,420,722
Total 112,500 2,557,208
  • Campaign extension. 851,820 HBAR ÷ 112,500 HBAR = 7 epochs, plus a buffer to account for any rounding errors or other inaccuracies that might arise. The grant therefore lasts through epoch 52, concluding 3 Nov 2025.
  • LARI boost. The V2 allocation of SAUCE is split 33% : 67% between LARI and DAO treasury, raising LARI rewards to 450,000 SAUCE/epoch (+ 20%).

3.2 Revised SAUCE Buyback Allocation

Destination Allocation Purpose
xSAUCE 45.5% Maintain competitive single‑sided staking APR (projected >4% median APR, calculated using 2023 - 2025 monthly data).
Development Fund 30% Provide a sustainable revenue stream to support the development and maintenance of the SaucerSwap protocol and interface; offsets loss in revenue due to reduction in interface fee.
POL + Incentive Reserve 24.5% Top‑up farm/LARI rewards during a stabilization period following the reduction in HBAR emissions; deepen key liquidity pools in the future.

Stabilization period. Until either (i) the 7‑day avg. V1 and V2 pool Total APRs return to ≥ 30% and ≥ 80%, respectively, or (ii) 90 days elapse, 100% of the 24.5% POL + Incentive Reserve is diverted to farms (10.89% of buybacks) and LARI (13.61% of buybacks).

3.3 Updated Weighting Schemes

The weighting schemes for farms and V2 pools receiving LARI rewards have been updated to align reward distributions more closely with capital efficiency, as determined by volume-to-TVL ratios. Refer to Figures 1 and 2 in Appendix A for detailed updated weights.

4 . Rationale

  1. Reduced Interface Fee and Integrated Revenue Model. By allocating 30% of buybacks to a development fund, SaucerSwap Labs is able to offset a loss in revenue from reducing the interface fee to a more competitive 0.25%. This bolsters growth and development of the project, while simultaneously making swapping much cheaper in a post-EIP-4844 environment where it’s increasingly important. This allows for lower fees across the board for users of the SaucerSwap interface and no increase in fees for programmatic trades. This is achieved all while maintaining the single-sided staking APR close to its median based on 2023 - 2025 data.
  2. Extend Incentive Runway. A seven‑epoch runway smoothens the yield curve, cushioning LPs against an abrupt rewards cliff.
  3. Protect LP Yields. Diverting 24.5% of buybacks to farms/LARI, realigning Masterchef V1 : V2 emissions, and re-weighting farms/LARI offsets much of the HBAR reduction—projected V1 yields fall 27.5% instead of 40%, V2 yields fall just 7% instead of 45%.
  4. Deepen Liquidity. Once the stabilization period ends, the same 24.5% POL + Incentive Reserve can be re-allocated to growing key liquidity pools and/or incentivizing other areas of the protocol, lowering slippage and ensuring rewards remained aligned.
  5. Long-term sustainability. The 4% burn allocation (discussed in the original buyback proposal) was removed because buybacks are better allocated to POL and incentives to deepen liquidity and sustain LP yields. This approach creates circular deflationary feedback for SAUCE by redirecting bought-back tokens into the protocol to reward active participation. Conversely, the burn mechanism might only temporarily support protocol endeavors but increase reliance on passive and speculative holders, risking fundamental exposure to broader market sentiment cycles.
  6. Conserve Treasury. No treasury draw‑downs or increase in SAUCE emission rate are required; this model uses existing grant balances and bought-back SAUCE.

5 . Benefits to the DAO & Community

  • Cheaper Swap Fees. The reduced interface fee makes trading via the SaucerSwap interface much more affordable.
  • Smoother Yield Curve. The seven-epoch extension in which HBAR is emitted at a reduced rate results in a smoother yield curve, supporting LP retention.
  • Competitive APRs. The incentive reserve allocation blunts the impact of the HBAR emission reduction, keeping SaucerSwap yields competitive and sustainable.
  • Liquidity Depth & Price Resilience. Future POL growth reduces slippage and drives volume.
  • Treasury Sustainability. Using market‑bought SAUCE avoids new dilution and preserves treasury reserves for future initiatives.

6 . Risks & Mitigations

Risk Mitigation
xSAUCE APR drops xSAUCE yield is projected to be approximately equal to its median; DAO may redirect a larger allocation of the buyback flow to xSAUCE by simple majority.
POL vs. Incentive tug‑of‑war Track POL and liquidity incentive balances; SaucerSwap Labs commits to transparent reporting in public channels regarding efficacy and distribution.

7 . Communication & Transparency

  • Transparent Documentation. Updated tokenomics data will be published in the SaucerSwap Docs.
  • Real‑time Reporting. On‑chain analytics for buybacks will continue to be displayed in Discord via the Buyback Bot.
  • Comms. Channels. LARI and farm specifications will continue to be communicated in Discord and on X, as well as our documentation.

8. Conclusion

This proposal strategically updates SaucerSwap’s incentive framework to lower the interface fee, extend liquidity incentives, realign emissions, and optimize SAUCE buybacks, thereby balancing protocol-owned liquidity and yields without token dilution. The refined weighting schemes further align rewards with capital efficiency, reinforcing a sustainable, circular token economy that supports ecosystem growth, liquidity depth, and competitive yields for LPs.

We respectfully request the community’s support.

9 . Voting Options

  • For — Implement the reduced HBAR emission rate (0.093 HBAR s⁻¹), new 44.44 % : 55.56 % V1 : V2 split, 45.5 % xSAUCE / 30% Development Fund / 24.5 % POL + Incentive Reserve buyback routing, and updated farm/LARI weighting schemes. SaucerSwap Labs will reduce its interface fee to 0.25%.
  • Against — Retain current 0.747 HBAR s⁻¹ emission rate, existing V1 : V2 weights, 100 % xSAUCE buyback allocation, and farm/LARI weighting schemes. SaucerSwap Labs will leave its interface fee unchanged at 0.4%.
  • Abstain — No position on this proposal.

Appendix A

Figure 1 — Updated Farm Weights

Pool Volume/TVL Current Weight Proposed Weight Change
SAUCE/HBAR 0.08 48.33% 48.56% 0.47%
USDC/HBAR 1.50 15.71% 15.75% 0.28%
HBAR/BSL 0.38 1.21% 1.26% 4.29%
HBAR/XSAUCE 0.08 4.83% 4.50% -6.89%
HBAR/PACK 0.16 2.90% 2.88% -0.68%
HBAR/DAVINCI 0.01 1.21% 1.13% -6.89%
SAUCE/XSAUCE 0.02 1.45% 1.35% -6.89%
WETH[hts]/HBAR 0.43 2.17% 2.48% 13.81%
HST/HBAR 0.10 2.42% 2.03% -16.20%
GRELF/HBAR 0.07 1.45% 1.35% -6.89%
QNT[hts]/HBAR 0.58 1.21% 1.35% 11.74%
STEAM/HBAR 0.13 0.72% 0.68% -6.89%
DOVU/HBAR 0.76 0.72% 0.90% 24.15%
WBTC[hts]/HBAR 0.77 2.42% 2.57% 6.15%
LCX[hts]/HBAR 0.19 1.45% 1.35% -6.89%
WAVAX[hts]/HBAR 0.42 0.72% 0.77% 5.53%
USDC/SAUCE 0.50 3.09% 3.24% 4.75%
HAI/HBAR 0.11 0.97% 0.81% -16.20%
HSUITE/HBAR 0.98 0.72% 0.86% 17.94%
LINK[hts]/HBAR 0.48 0.97% 1.04% 7.08%
KARATE/HBAR 0.61 2.17% 2.30% 5.53%
DINO/HBAR 0.20 1.21% 1.04% -14.33%
CLXY/HBAR 0.07 0.72% 0.59% -19.30%
JAM/HBAR 1.12 0.48% 0.63% 30.36%
SENTX/HBAR 0.05 0.72% 0.63% -13.09%

Figure 2 — Updated LARI Weights

Note that the HLiquity grant is factored in, so the HCHF and HLQT pairs have weights matching their grant allocations.

Pool Fee Tier Volume/TVL Current SAUCE Weight Proposed SAUCE Weight Change Current HBAR Weight Proposed HBAR Weight Change
USDC/HBAR 0.15% 6.54 18.00% 19.00% 5.56% 14.46% 14.3492% -0.77%
HBARX/HBAR 0.15% 0.06 7.00% 7.00% 0.00% 4.34% 4.2718% -1.57%
SAUCE/HBAR 0.30% 1.55 19.00% 19.00% 0.00% 18.31% 17.2225% -5.94%
USDC/USDC[hts] 0.05% 1.70 6.00% 5.55% -7.50% 5.78% 5.6957% -1.46%
GRELF/HBAR 0.30% 0.11 0.00% 0.00% -% 0.48% 0.4746% -1.12%
SAUCE/XSAUCE 0.15% 0.66 3.00% 2.50% -16.67% 1.93% 1.8321% -5.07%
PACK/HBAR 0.30% 1.51 0.00% 0.00% -% 2.89% 2.7434% -5.07%
WBTC[hts]/HBAR 0.15% 1.93 5.00% 5.00% 0.00% 2.89% 2.7434% -5.07%
DOVU/HBAR 1.00% 1.86 0.00% 0.80% -% 0.96% 0.9113% -5.07%
USDC[hts]/USDT[hts] 0.05% 1.74 4.00% 3.50% -12.50% 3.86% 3.5542% -7.92%
KARATE/HBAR 0.30% 0.33 0.00% 0.50% -% 0.96% 0.9113% -5.07%
PACK/XPACK 0.15% 0.73 0.00% 0.00% -% 0.00% 0.4746% -%
WETH[hts]/HBAR 0.15% 2.59 3.00% 3.50% 16.67% 2.89% 3.3225% 14.97%
CLXY/HBAR 0.30% 0.16 0.00% 0.00% -% 0.96% 0.4746% -50.56%
XSAUCE/HBAR 0.30% 0.70 3.00% 2.50% -16.67% 2.89% 2.8478% -1.46%
USDC[hts]/DAI[hts] 0.05% 0.60 2.00% 0.00% -100.00% 1.93% 0.00% -100.00%
USDC[hts]/HBAR 0.15% 3.66 7.00% 7.50% 7.14% 6.75% 6.6450% -1.56%
HLQT/HBAR 0.30% 0.07 0.00% 0.00% -% 2.52% 4.4456% 76.41%
QNT[hts]/HBAR 0.30% 2.74 3.50% 4.00% 14.29% 2.41% 2.8478% 18.17%
USDT[hts]/HBAR 0.15% 2.90 5.00% 5.15% 3.00% 4.82% 4.7464% -1.53%
USDC/HCHF 0.05% 0.11 0.00% 0.00% -% 2.03% 4.918524% 142.29%
USDC[hts]/WBTC[hts] 0.15% 2.78 2.00% 2.50% 25.00% 1.93% 1.8986% -1.63%
HST/HBAR 0.30% 0.50 1.00% 0.00% -100.00% 0.96% 0.9493% -1.11%
LINK[hts]/HBAR 0.30% 2.88 2.00% 2.50% 25.00% 1.93% 2.1359% 10.67%
JAM/HBAR 1.00% 2.65 0.00% 0.50% -% 0.96% 0.9932% 3.46%
USDC/SAUCE 0.30% 5.75 4.00% 4.00% 0.00% 3.86% 3.7971% -1.63%
WAVAX[hts]/HBAR 0.30% 0.56 1.50% 1.00% -33.33% 1.45% 1.3765% -5.07%
WETH[hts]/USDC[hts] 0.15% 2.04 1.00% 1.50% 50.00% 0.96% 0.9493% -1.11%
WBNB[hts]/HBAR 0.30% 4.05 1.50% 1.75% 16.67% 1.45% 1.4239% -1.80%
DAI[hts]/HBAR 0.15% 5.13 1.50% 0.00% -100.00% 1.45% 0.00% -100.00%
USDC/CARAT 0.15% 3.87 0.00% 0.75% -% 0.96% 0.9493% -1.11%
HBAR/HCHF 0.30% 1.93 0.00% 0.00% -% 0.04% 0.094576% 136.44%
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