Proposal: [Temp Check] Saga Uniswap v3 Liquidity Incentives
Snapshot: link
After reviewing the Saga Foundation’s proposal on the governance forum and considering the feedback from other delegates, I am voting AGAINST the proposal.
Value Proposition
Saga is introducing its Liquidity Integration Layer (LIL) to address liquidity fragmentation in horizontally scalable infrastructures, with Uniswap v3 as the designated decentralized exchange (DEX). The partnership aims to enhance liquidity and promote innovation.
Main Concerns
- It’s Just Another Chain
- Saga may not offer a truly unique value proposition compared to other L2s, rollups, or alternative scaling solutions.
- The Uniswap ecosystem already supports multiple chains, and adding another might dilute focus or stretch resources without clear differentiation.
- There’s a risk that liquidity incentives won’t generate sustained usage beyond the incentive period.
- Lack of Focus on Execution
- The proposal doesn’t provide detailed execution strategies, KPIs, or a clear roadmap for measuring success.
- Without well-defined mechanisms to ensure LP retention and efficient liquidity deployment, the incentives might be wasted.
- The complexity of integrating Saga’s Liquidity Integration Layer (LIL) could lead to unforeseen technical or operational delays.
- Lack of Commitment from Their Side
- The proposal asks for $250,000 in UNI incentives but doesn’t clearly define Saga’s long-term commitment or matching contribution.
- There’s uncertainty about what happens after the incentives run out—will Saga continue supporting Uniswap liquidity, or will liquidity migrate elsewhere?
- The proposal does not specify how Saga will ensure deep, lasting adoption beyond the funded period.