SaucerSwap x The HBAR Foundation | 2024 Spring Incentives Campaign

On Monday, June 3rd, SaucerSwap will launch the Spring Incentives Campaign in collaboration with The HBAR Foundation. This campaign, running for approximately three months with opportunity to extend, aims to boost liquidity, increase Hedera network participation, and reward the SaucerSwap community. The campaign will distribute a total of 23,125,000 HBAR through various initiatives, including liquidity rewards, network fee rebates, and a Discord faucet initiative. These efforts are designed to improve the health and efficiency of our protocol while supporting the ecosystem’s long-term growth and sustainability.

• 21,000,000 HBAR for liquidity rewards
• 1,875,000 HBAR for network fee rebates
• 250,000 HBAR for a faucet initiative

Liquidity Rewards

Farm

A third of the liquidity rewards portion of the grant, 7,000,000 HBAR, is designated for yield farm rewards in V1 pools. Starting June 3rd, 1,073,971 HBAR will be distributed over the first two weeks, across 28 pools including new additions like HBAR/BSL and HBAR/DAVINCI. Each farm will receive dual token rewards in SAUCE and HBAR based on the weighting schema detailed in Table 1.

Table 1. Initial allocations of SAUCE and HBAR to V1 yield farms. DAO and LARI weights were added following enactment of the Tokenomics V2 proposal.

The focus will initially be on supporting pools containing Hedera-native and hashport-bridged tokens, with the potential to extend incentives to other native projects and bridges in the future. The total HBAR emission rate and individual farm weights will be re-evaluated after two weeks. If the boosted incentives achieve the anticipated TVL increase while assuming APRs equilibrate at their current levels, a 40% TVL increase for V1 is projected.

Liquidity-Aligned Reward Initiative (LARI)

Two-thirds of the liquidity rewards portion of the grant, 14,000,000 HBAR, will fund LARI rewards in V2 pools. Commencing June 3rd, 2,333,333 HBAR will be distributed in the first two weeks (Epoch 15). To grow the DAO’s strategic reserve and reduce inflation, the rate of SAUCE emissions to LARI will be reduced by a factor of one-third during the campaign. Despite this reduction in SAUCE emissions, APRs will increase across the board due to the added HBAR incentives, assuming constant TVL.

The campaign will initially support 28 pools, including new ones like HBAR/KARATE 0.30% and HBAR/PACK 0.30%. Each V2 pool will receive dual token rewards in SAUCE and/or HBAR as per the weighting schema in Table 2.

Table 2. Epoch 15 (June 3rd — 17th) allocations of SAUCE and HBAR to V2 pools via LARI. Note that project-specific token incentives (e.g., DOVU, PACK) are omitted from this graphic.

Active liquidity partner campaigns will continue, offering additional incentives in project tokens. Similar to V1, the focus will initially be on Hedera-native and hashport-bridged token pools, with opportunities to expand to other native projects and bridges. The total HBAR emission rate and individual LARI weights will be reassessed after Epoch 15. Assuming the incentives drive a substantial TVL increase that equilibrates at current APRs, a projected 324% TVL increase for V2 would follow.

Network Fee Rebates

To incentivize trading on SaucerSwap, a network fee rebate system has been introduced. For both V1 and V2 router contracts, transaction fees incurred by accounts during swap interactions are recorded. Each month, 90% of these fees are rebated to the accounts via an airdrop, boosting trading activity and not requiring any user action on claims.

Note: Rebates are in HBAR and will be sent from account 0.0.4138717.

Faucet Initiative

The SaucerSwap Discord server features a faucet bot dispensing small amounts of HBAR. To access this:

1. Open Discord and navigate to the SaucerSwap server.
2. Follow the Wickbot prompts to verify your Discord account.
3. After verification, navigate to the faucet bot channel and enter !sparechange <YOUR_ACCOUNT_ID>, using your Hedera account ID or EVM address from MetaMask.
4. Your account will receive a one-time allotment of $0.275 worth of HBAR, intended to cover network fees for initial transactions.

For more detailed instructions, see the Tutorial.

Other Remarks

SaucerSwap has recently integrated Moonpay, a leading crypto-to-fiat gateway, enabling direct crypto purchases from bank accounts. Currently, Moonpay has waived its fees, allowing users to buy HBAR and Hedera-native USDC easily and cost-effectively.

Stader, another project involved in The HBAR Foundation’s Spring Incentives Campaign, is offering 4.63% APR on HBAR liquid staking via their yield-bearing HBARX token. This is significantly higher than the native staking rate of 0.282% (as of the date of publication). HBARX can be paired with HBAR or other HTS assets and supplied in SaucerSwap to compound yield.

Summary

The 2024 Spring Incentives Campaign represents a significant collaboration between SaucerSwap and The HBAR Foundation, allocating 23,125,000 HBAR to various initiatives. With 21,000,000 HBAR for liquidity rewards, 1,875,000 HBAR for network fee rebates, and 250,000 HBAR for a Discord faucet initiative, the campaign aims to drive substantial growth in TVL and trading activity. Key initiatives include yield farming, the Liquidity-Aligned Reward Initiative, and a network fee rebate system, all designed to support the long-term sustainability and growth of the SaucerSwap ecosystem.