[SCP-26] Utilize G-UNI For Future Uniswap v3 Liquidity Mining Program

[SCP 26] Utilize G-UNI For Future Uniswap v3 Liquidity Mining Program

Summary

Utilize G-UNI for ShapeShift’s future liquidity mining program on Uniswap v3 via the G-UNI FOX/ETH pool when the current liquidity mining program ends in early 2022.

Abstract

G-UNI is a fungible (ERC20) wrapper around an LP Position on a Uniswap V3 trading pair. Fees earned by the position are automatically reinvested into the position by Gelato automation for compounding effects. Liquidity is added into the G-UNI Pooled Position and G-UNI tokens are minted. These G-UNI tokens have the ability to be staked into liquidity mining programs such as ShapeShift’s to earn FOX tokens. Currently, Gelato does not charge any fees for minting and burning G-UNI tokens and only charges a 1% fee from fees claimed from the pool.

Motivation

The goal of this proposal is to solidify G-UNI as the solution for ShapeShift’s liquidity mining program when the current one ends. G-UNI corrects multiple points that are lacking for ShapeShift including having liquidity exist on Uniswap v3 at a mass scale and making it easy for people to participate.

Specification

The G-UNI FOX-ETH pool will be a fixed range position that does not change. At first, the pool will be managed by the Gelato multisig but will be handed off to the ShapeShift team shortly after.

Proposed FOX-ETH G-UNI Specs

Fee Tier: 0.3%

Position Lower Bound: 1 FOX = 0.00006 ETH

Position Upper Bound: 1 FOX = 0.0015 ETH

In the coming months, the proposed technical details and specs of this proposal are subject to change via public discussion and team discretion. Many things can change including the appropriate price range to have the G-UNI pool and the emergence of consistent rebalancing strategies that could be implemented. Rewards emissions can be decided at a later date as we see how the current liquidity mining program fairs out.

Benefits

The G-UNI user-experience is simple and intuitive. Essentially turns Uniswap v3 into v2 again from a user perspective. No need to actively manage positions, just “set and forget”. Next, liquidity is aggregated from a wider pool of users who would otherwise not use Uniswap v3, increasing the size of it overall. Furthermore G-UNI helps boost FOX’s Uniswap v3 oracle standing and accuracy making it more attractive in being added to DeFi lending protocols in the future.

Drawbacks

G-UNI is a third party service and although there is always a risk of smart contract failure, hacks, etc, G-UNI has been audited multiple times including by Certik and has been battle-tested on mainnet for months now.

Vote

Yes, utilize G-UNI FOX-ETH for ShapeShift’s liquidity mining program when the current one ends in early 2022

No, do nothing

  • Yes, utilize G-UNI
  • No, do nothing

0 voters

5 Likes

Would be awesome to see this live!

6 Likes

G-UNI is trusted and battle-tested by some of DeFi’s most notable protocols. Here is a selected list of projects that have integrated G-UNI already in different capacities.

Most notably, Maker integrated G-UNI as collateral for the DAI/USDC pair and Hayden tweeted about it https://twitter.com/haydenzadams/status/1440461089133645835?s=20

Rari now has multiple G-UNI pairs as collateral: G-UNI Rari Fuse Pool Is Now Live. G-UNI, Gelato’s Uniswap v3 LP solution… | by Gelato Network | Gelato Network | Sep, 2021 | Medium

Fei Protocol using G-UNI for liquidity mining: Fei Protocol To Utilize G-UNI For Their Liquidity Mining Program | by Gelato Network | Gelato Network | Sep, 2021 | Medium

2 Likes

Proposal is live, go vote :slightly_smiling_face: Boardroom Management Portal