Launching On-Chain Gauge Voting
We are moving towards a more decentralized future and are excited to announce the launch of On-Chain Gauge Voting using the Compound Governor Bravo. Compound Governor is one of the most widely adopted governance frameworks in Web3.
Saddle Finance is emitting 1.25 million SDL tokens weekly in liquidity mining incentives. The Saddle community determines the SDL emissions for each liquidity pool through the weekly gauge vote.
In order to optimize emission flows, promote greater community engagement within the Saddle dApp, and enhance decentralization of the Saddle protocol, we have launched On-Chain Gauge Votin which was previously carried off-chain through Snapshot.
On-Chain Voting and Voting Gauges
On-Chain Voting is a governance system where votes are submitted as transactions and recorded directly on the blockchain. The outcome of the votes is implemented in a trustless way through smart contracts. Unlike off-chain voting, it does not require a third party or the core team to implement the voting outcome.
Voting gauges allow veSDL holders to direct the flow of weekly SDL emissions. The SDL is distributed proportionally as per the gauge weight of each pool. The gauge weights are a function of how much veSDL has voted for that gauge. The larger the pool votes, the larger the SDL emission allocated to the pool, resulting in a higher APR.
veSDL holders can vote for one or more gauges, choosing the percentage of their voting power to allocate to a specific gauge. Holders will only have to pay gas once for their initial vote, where votes will automatically roll over week after week. Holders can change their vote 10 days after voting, for which they will have to pay the gas fee.
We aim to offer the best of DeFi to our users, partner protocols, and the community. Towards this, we have implemented On-Chain Voting that coincides with the launch of Community Pools. It takes us closer to our overall decentralized vision.
Benefits of On-Chain Gauge Voting
Trustless
With On-Chain Gauge Voting, emissions will be completely trustless with zero participation from the Saddle team.
Better Incentives for veSDL holders
Besides being trustless, On-Chain Gauge Voting will enable SDL emissions and gauge weights to update in real-time. SDL emissions will adjust according to the changes in the voting ratios. This will help veSDL holders put more weight and thought behind their votes to maximize the incentives.
Motivate Voters by Incentivizing Governance
One of the major deterrents of active governance is voter apathy. Governance is healthier when voters are motivated to be engaged in voting. Gauges and bribes have helped incentivize active governance. With on-chain voting, veSDL holders can vote, forget, and earn.
Clear User Interface
On-chain gauge voting is available within the dApp, so you won’t have to leave Saddle.exchange. The interface is easy to use and ideal for beginners and seasoned Degens alike. Governance votes on proposals that affect Saddle Protocol will continue through Snapshot.
Decentralization and democratic governance are critical to DeFi. Saddle recognizes the importance of rewarding active governance participation through a decentralized approach. On-chain gauge voting helps extend that vision. It allows veSDL holders to vote for SDL emissions on-chain without an intermediary – all within the Saddle dApp.
On-chain gauge voting is now live. You can visit https://saddle.exchange/#/vesdl and select the gauge to earn rewards.
Saddle is a decentralized AMM that enables cheap, efficient, fast, and low-slippage swaps. Saddle is built by a team of DeFi natives aimed to bridge the gaps between the different silos of DeFi. We believe in collaboration, building Saddle as a DeFi lego block, and helping DeFi teams bring AMMs to any blockchain.
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