Author(s): Sperax Core Team Reference: Roadmap, Demeter Concept Farm with Partner L2DAO Created: Aug 15, 2022 Labels: #Other
Demeter protocol is a new protocol for DAOs to launch and manage decentralized exchange liquidity - without needing to know how to code.
V1 of Demeter gives users the power to launch incentivized liquidity pools on Uniswap v3. When using Demeter, users benefit from engineering support, marketing support and financial support.
Future versions will support custom liquidity shapes on major DEXs such as Balancer, Saddle, Sushiswap or anything veSPA holders prefer.
Demeter automates the fundamental aspects of launching and managing decentralized exchange liquidity for the DAOs native token:
This product is a public good for the exploding Arbitrum ecosystem. Without needing to know the nuances of a Uniswap farm launch, the newest DAO now has the tools to launch a successful campaign and compete with the big guys.
The fee to use the contracts will be $500 used to burn $SPA. Pools launched with Demeter with trading pairs against $USDs or $SPA won’t be charged this fee.
On Arbitrum, Uniswap has less liquidity than Balancer and Sushiswap. This is because Sushiswap uses the simple Uniswap v2, x*y=k approach. This is simple because all LP tokens are the same, but penalizes the LP because they are forced to provide liquidity from 0 to infinity. With Demeter, DAOs can launch a v3 farm without knowing how to code.
Killed yield farming… until Demeter!
Incentivized liquidity pools on Uniswap V3 lets DAOs benefit from concentrated liquidity - the same TVL offers less slippage compared to diluted liquidity. This directly translates to a lower emissions budget for other protocols.
Demeter protocol will not charge any fee for launching farms against USDs or SPA. USDs currently doesn’t have a lot of liquidity against other tokens, a joint incentivized liquidity campaign would lead to an increase in USDs trading pairs, USDs liquidity and protocol TVL.
To launch a v3 farm, DAOs are currently expected to write complicated v3 farm contracts, get the contracts audited, incentivize LP deposits with only their native token, then promote this new pool… So the community figues they’ll use Demeter instead.
The Demeter protocol provides three fundamental components of growing decentralized exchange liquidity:
Engineering Automation - The Audited Demeter Farm Factory contract will generate the pool and farm contracts for the Demeter user.
Marketing Support - Protocols that launch their farm through Demeter benefit from being whitelisted on the Demeter active farms dashboard. This exclusive list features all of the farms that are actively distributing rewards that were deployed with Demeter. Farmers will regularly look to this dashboard for new projects and become users of these protocols.
Economic Support - When pairing against USDs or SPA, Demeter users receive financial benefits from two sources.
Steps for launching a farm:
Uniswap Pool Parameters
1. For all liquidity providers
2. For lockup liquidity providers (If cooldown period is greater than 0)
Each reward token will be assigned a reward token manager. Farm admin cannot update the reward token manager once the farms are deployed.
Maximum number of reward tokens possible would be 4.
Reward token managers can do the following:
Protocols can call functions through non-EOA addresses and manage the farm. This is for multi-sigs or DAO’s to manage the pool and farm.
Protocols do not have the power to add or update the token reward manager for the SPA token. Once SPA gauge is launched, this functionality will be passed on to the SPA gauge.
NO one can make changes to the farm contract once deployed.
Farm admins can do the following:
Flat $500 fee to launch the farm,
Pair with USDs or SPA for fee to be waived.
The fee collected belongs to the SPA stakers and can be transferred directly to the wallet address where all Sperax protocol fees are collected.
Fee’s Can Be Paid In:
DAI, USDC, USDs, SPA
Initial fee: USD 500
This will be subject to governance. For fee payment in SPA we would need to use the SPA price oracle to determine the price of SPA.
This section should show a diagram that illustrates the overall architecture
Below are the supported blockchains where Demeter can be deployed. Additional blockchains will be added in v2
Arbitrum Optimism Polygon Ethereum