[FIP - 167] Add L2D4 Gauge

Governance Proposals Gauges
1

SUMMARY:

Deploy an FXS gauge for the Saddle L2D4 pool (FRAX, USDs, USX, alUSD pool on Arbitrum), which will be co-incentivized by Sperax, dForce, Alchemix, L2DAO, and Saddle.

Saddle pool address: L2D4

BACKGROUND AND MOTIVATION:

The current stablecoin market is dominated by three major players: USDC, USDT, DAI.

While these coins have proven to be mostly reliable in terms of stability and usecase, they also come with certain limitations and risks.

L2D4 intends to offer a focused alternative to the standard, act as a catalyst for rebalancing the markets in favour of less centralised offering, and offer direct swap paths through aligned protocol stablecoins/stablecoin derivatives.

With bribe proposals passed by the constituent protocols, and additional bribes coming from both Layer2DAO and Saddle, establishing a gauge for the pool would represent a massive opportunity to break into Arbitrum for veFXS hodlers-- allowing them to acquire 6 governance tokens and a major footing in the ecosystem in exchange for their votes.

VOTING:

  • For: Deploy an FXS gauge for Saddle’s L2D4 LP token
  • Against: Do nothing.
3 Likes
2

A big L2D-For on this one🦆

Here are the proposals from each constituent protocol for context:

3 Likes
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1 Like
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This proposal is up for voting here: Snapshot

1 Like
5

I don’t really see how these types of pools are efficient. I really doubt there is that much direct volume going between these tokens. Unless data can be shown otherwise?

incentives are also less efficient unless everyone in the group keeps up their share and all is equal, otherwise someone is footing the bill for the other tokens.

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The efficiency come from the fact that all tokens in the pool give out incentives, this will hopefully result in cheaper liquidity for all. When this pool has build significant liquidity, the tokens can then use each others external liquidity by routing via this pool.

2 Likes