Introducing SDL
tl;dr
- SDL, the Saddle DAO governance token, is live! (Max supply of 1 billion tokens)
- SDL contract address: 0xf1dc500fde233a4055e25e5bbf516372bc4f6871
- 51% of the SDL genesis supply is allocated to Saddle community members, of which 15% has already been allocated to historical users (vested over 2-3 years)
- SDL is initially non-transferrable and can be earned via liquidity mining on Saddle pools on Ethereum and Arbitrum and via bounties4bandits community incentives program
- Liquidity mining rewards will begin on 11/18/21 12:00 AM UTC
The Saddle Ethos: Community and OSS
Since its inception, the Saddle Protocol (“Saddle”) has served as community- and developer-first infrastructure that wholly embraces open source collaboration.
Since launching in January 2021, the protocol has:
- Facilitated >$800M in cumulative USD volume across 10 pools and 18 unique pegged value assets
- Secured >$200M in deposits by over 8,600 unique liquidity providers (LPs), who have collectively earned $3.2M in fees
- Helped enable billions of TVL in liquidity for pegged asset AMMs and bridges for many protocols and chains (including SushiSwap, Hop, Nerve/Synapse, Iron Finance, and Snowball) through our open-source contributions
SDL Allocation
The max supply of 1 billion SDL has been minted at genesis and will become available over the course of 3 years. The initial SDL allocation is split between:
The Saddle community tokens (510,000,000 SDL) are further allocated as per the schedule below:
15% of SDL (150,000,000 SDL) can be claimed by past liquidity providers and users with 2-year vesting. This is broken down as follows:
- 10.5% pro-rata to historical liquidity providers (105,000,000 SDL)
- Tokens were distributed per block to historical liquidity providers by accounting for provided liquidity amounts in dollars as a percent of total TVL
- Rewards were doubled during the one month guarded launch period
- 3% split evenly across veCRV holders (30,000,000 SDL) as a token of thanks for the StableSwap maths (using the latest EPS snapshot)
- 0.5% split evenly across each address that has ever called the Saddle contracts (5,000,000 SDL)
- Cutoff date is Oct 1st, 2021 (any addresses interacting with any Saddle contract before then is eligible)
- Addresses swapping less than a total of $100 are excluded to prevent sybils
- 0.5% split evenly across multisig signers (5,000,000 SDL)
- 0.5% pro-rata to early depositors-- we’d like to appreciate and compensate these community members, a few of whom took risks and lost value.
The token is initially non-transferable for a period of between 3 to 12 months. After 3 months, governance may vote to enable transfers. After 12 months, they may be enabled by anyone. The token and vesting contracts have been audited by Quantstamp, read the audit here.
Saddle would not be where it is today without the many community members and LPs who have joined its journey over the past year. We are launching SDL as non-transferrable to allow community members to earn more and deter short-term profit-seekers and mercenaries.
We hope that all of you OGs (and new community members) will help the protocol grow and evolve as it enters its next stage!
How to Earn SDL Tokens
You can earn the Saddle tokens in 2 ways – by LPing in Saddle’s incentivized pools and by participating in the bounties4bandits (b4b) program.
Liquidity Mining
5% of SDL (50,000,000 SDL) has been allocated to liquidity mining programs across Ethereum, Arbitrum, and (later) Optimism which can be earned without any vesting. The initial liquidity mining program will run for 6 months and 2.23% (22,300,000 SDL) will be distributed as follows:
Liquidity mining will begin on 11/18/21 12:00 AM UTC.
The remaining 3.77% of tokens have been earmarked for future pools, to be decided upon by the community. Specific information on SDL incentives for each pool is available on the Pools page on the dApp.
bounties4bandits (b4b) community incentives program
0.75% (7,500,000 SDL) is allocated with no vesting to a community multisig for grants for community contributions through bounties4bandits (b4b), a program run by our community members in collaboration with Encode Club. Encode Club is receiving a 0.25% grant (vested over three years) for their continued support.
b4b is Saddle’s extended hackathon / grants program for Saddle community members to get involved and get rewarded, with several technical and non-technical tracks. Learn more about b4b here.
Community Treasury
The remaining 30% of tokens (300,000,000 SDL) will vest to the governance treasury over 3 years. The community will decide how to distribute these tokens on an ongoing basis through community initiatives, liquidity mining, and other programs.
Governance
SDL token holders can vote on proposals. Initially, the proposals will be on Snapshot, which the current community multisig will then enact. Discourse will be the platform for discussion of the proposals.
We expect proposals in the next few months to migrate to fully on-chain governance using the Compound Governor Bravo and add additional token economics.
Saddle up!
All historical users and liquidity providers can claim their SDL now on the Saddle dApp.
Sign up for an account on the Saddle community Discourse to start participating in protocol governance today!
ABOUT SADDLE
Saddle is a decentralized automated market maker (AMM) on the Ethereum blockchain, optimized for trading pegged value crypto assets with minimal slippage. Saddle enables fast, low-cost, and low-slippage swaps for traders and high-yield pools for LPs.
Our values are rooted in collaboration, in building Saddle as a DeFi lego block, in helping DeFi teams bring AMMs to any blockchain.
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