TLDR:
The proposal to deploy Uniswap on Sei has completed the 7-day RFC phase. This deployment has therefore been optimistically approved by the Uni DAO. We will now turn to a temperature check to vote on whether or not the DAO would like to employ the Uniswap Onboarding Package to help incentivize Uniswap pools on Sei. This vote also includes a veto option, allowing any delegates who hold a dissenting opinion to veto this deployment altogether.
Onboarding Package:
The purpose of the Uniswap Onboarding Package is to allow new deployments of Uniswap v3 to get set up with three months’ worth of liquidity incentives, a frontend, and an incentive distribution tool like Merkl. These resources will help position Uniswap to have a formidable presence on new EVM chains.
Criteria for Package Adoption:
This off-chain vote will be used to determine how much in incentives–if any–the DAO would like to allocate to this deployment. The options are as follows:
- Incentivize $250k
- Incentivize $500k
- Incentivize $750k
- Incentivize $1M
- Deploy without incentives
- Veto this deployment altogether
This temp check will be considered met as long as the total number of votes cast for the funding options is over >10M. If there isn't a clear winner for which level of incentives the chain should receive, a discussion can be had before the onchain proposal. All incentives will be distributed to LPs in terms of $UNI on the target chain.
Further Details:
- Incentivized pools will primarily be blue chips (ETH-USDC, ETH/WBTC, USDC-USDT)–and any local pools if applicable. The onchain vote will include the final details for pool info.
- The Accountability Committee will escrow the inflight incentives.
- Sei Foundation is paying for the Oku Trade integration–the DAO will not be using the funds from this vote for front-end integration and maintenance.
- Angle Merkl will be paid for incentive distribution. The fixed integration cost going to Merkl for this deployment is €20k.
- Angle Merkl charges 3% on incentives distributed with their system. They have offered a 25% discount on their base 3% fee for incentives distributed between $2.5m-$5m, a 50% discount on incentives distributed between $5m-$10m, and a 75% discount on all incentives above $10m in a 365-day period. The Accountability Committee will be responsible for ensuring that the DAO attains properly discounted rates.
- Example scenario: if $500k of incentives are voted in, and the Merkl take rate is 3%, then the grand total that’ll be requested from the DAO during the onchain vote will be $500k + $15k + €20k = ~$536,664
Sei’s Liquidity Bootstrapping Commitment:
Sei Foundation will commit up to $1M worth of liquidity to Uniswap pools on Sei. The tokens will be deployed on Uniswap through the Sei integration with Oku. A tranched approach will be used to bootstrap the liquidity. Each quarter, between Q2 2024 - end of Q4 2024, the Sei team and the Uniswap Accountability Committee will evaluate the TVL, volume, and activity of the Uniswap pools on Sei.
- Q2 2024: $400k guaranteed commitment
- $200k in SEI/USDC
- $100k in SEI/wETH
- $100k in SEI/USDT
- Q3 2024: $300k tentative commitment
- Q4 2024: $300k tentative commitment
- Q3 and Q4 liquidity deployments will be based on Uniswap’s volume/active users from the previous quarter and the TVL at the start of the given quarter. Lower traction will lead to lowered future commitments from Sei Foundation.
Once live, active pools, TVL, volume, and fee metrics will be available on Oku’s analytics page. The Accountability Committee will be responsible for ensuring that these above promises are kept.
