This forum post is to discuss the upcoming Governance proposal for SOMM incentives to bootstrap liquidity for listing the SOMM token on the Camelot Dex on Arbitrum. This is set to go to vote on Monday, May 1, 2023.
Description
This proposal is intended to authorize a one-time transfer of 40,000 SOMM from the community fund to a to-be-created multi-sig address [TBD] on Sommelier. These tokens will be used to incentivize liquidity on Camelot, the largest Arbitrum-native DEX which will list a SOMM-ETH pair. Camelot has also committed to co-incentivize the pair on a month-to-month basis depending on trading volume and other factors. The total amount of tokens for the proposed program represents 0.030% of the tokens in the community fund.
Listing SOMM on Camelot provides several key benefits to Sommelier:
-
Increase brand awareness: While the Sommelier brand is growing within Cosmos and now Ethereum, becoming part of the Camelot community provides a platform for Arbitrum users to become aware of Sommelier.
-
Support multi-chain vaults: This awareness will be critical as Sommelier executes its multi-chain strategy, which includes Arbitrum and other high-value EVM compatible networks.
-
Deepen SOMM liquidity: Deep SOMM liquidity is also critical for any SOMM incentives distributed to vault users. When Sommelier launches vaults on Arbitrum, the perceived value of the incentives is greater because they can be more easily realized. Additionally, deep token liquidity is critical for enabling SOMM integrations in other DeFi applications within the Arbitrum ecosystem as it is required for liquidations, oracles, etc.
In the future, Sommelier may want to launch similar programs with Camelot with different parameters - any future program is outside of the scope of this governance action and will require a new proposal. In the event that there are unused funds, those funds will be returned to the community fund.
The multisig will be composed of a mix of early developers on the Sommelier Chain as well as contributors to the Sommelier ecosystem.
- Kristi Poldsam
- Joseph Terrigno
- Zaki Manian
This proposal, if accepted, will spend 40,000 SOMM from the community fund to a to-be-created multi-sig address [TBD] on Sommelier, to be distributed to incentivize liquidity for the SOMM-ETH pair on Arbitrum.