[SIPS-071] Upcoming Turbo SWETH Cellar Proposal

Goal

The goal of this forum post is to discuss the upcoming Cellar proposal asking Governance to accept the Turbo SWETH strategy.

Context

Swell is a growing liquid ETH staking ecosystem (swETH), with an emphasis on vault integrations. As a result, we see a significant opportunity for a collaboration between Swell and Sommelier.

The Turbo SWETH vault will accept ETH as deposit asset, and will LP swETH/WETH on Uniswap V3 and Balancer. The purpose of the vault is two-fold:

  1. Earn competitive ETH-denominated yields by taking exposure to swETH.
  2. Provide an efficient managed solution to liquidity provisioning in the Swell ecosystem.

We believe Sommelier has the opportunity to play the role of DeFi infrastructure that provides support for specific ecosystems. In particular, this vault is being built to serve the needs of the Swell community. The vault will take exposure to the following assets:

  • WETH
  • SWETH

and the following protocols:

  • Balancer
  • Uniswap V3

Proposal for cellar authorization for strategy Turbo SWETH

If approved, the chain will accept signed function calls submitted to the cellar contract from the strategy provider.

Name: Turbo SWETH

Cellar share token: TurboSWETH

Strategy providers: Seven Seas Capital and DeFine Logic Labs

We will update this post with more details in the coming days, including fee information and contract deployments

Link to relevant audits

Redstone oracle pricing (for swETH) and Balancer adaptor: Sommelier A-8 | Macro Audits | The 0xMacro Library
Uniswap V3 adaptor: Sommelier A-4 | Macro Audits | The 0xMacro Library