Summary
Unichain is currently the main focus of Uniswap’s growth strategy, presenting a significant opportunity for collaborative growth. The launch of USDS and sUSDS opens doors for close collaboration among two of the premier DeFi protocols Uniswap and Sky Ecosystem.
Following the launch of USDS and sUSDS on Unichain, this proposal aims to boost growth on Unichain through a combination of partnerships and matched incentives, driven by aligned KPIs related to USDS and sUSDS growth on Unichain.
Motivation
Unichain is currently growing almost exclusively in Uniswap pools. Growth in other DeFi protocols on Unichain is growing but still behind. The introduction of USDS and sUSDS creates opportunities for enhanced collaboration among DeFi protocols.
sUSDS provides yield, which itself is paid for by the Sky ecosystem. For example, if Unichain sUSDS TVL grows to 100 million, and at the current 4.5% of sUSDS yield, that would cost Sky 4.5 million USD per year. sUSDS can be a crucial part of the growth of the Unichain DeFi ecosystem, as it allows a stable and scalable yield source. For example, just examining Euler, removing Euler’s extra incentive, the lending APY is 3.19% for USDC and 2.05% for USDT as of June 4th 2025. However, if Euler were to integrate sUSDS yield and also provide its own incentive on top of incentive from Unichain, it could make it much more competitive yield compared to all other chains.
Source: DeFillama - Unichain May 16,2025
Source: DeFillama - Unichain June 4,2025
In addition, we strongly believe in Uniswap DAO having guidance and decision over the incentives distribution. Once per month, the strategy will be suggested to UniswapDAO where they can vote via snapshot to support the monthly incentive distribution or not.
Goal / Growth Strategy
The strategy involves coordinating with key protocols to expand the Unichain ecosystem such as by utilizing Sky ecosystem’s competitive base savings rate, which with the incentive from Uniswap DAO along with relevant DeFi partner can amplify it further. This can be done via three main ways:
- Collaboration with protocols to Increase TVL and Users
StableLab will onboard protocols and, where applicable, negotiate co-incentive plans. For example, it could be that co-incentives are discussed with Euler and/or Compound to provide even additional incentives on top of sUSDS yield and co-incentives from Unichain.
- Focus on optimizing incentive programs
All co-incentive programs will be data-driven to ensure effective growth. Co-incentives will be spent with strategic reasoning and analytical support. The program update will be shared once per month to communicate with the community.
- Continuous improvement and optimization
In addition to the monthly program updates, we’ll refine the strategy in real-time, allowing for continuous improvement and optimization. KPI-driven growth will enable ongoing adjustment of both partnership targets and co-incentives distribution to ensure maximum ROI on spending.
Budget and Duration
As mentioned above, sUSDS provides yield, paid for by the Sky ecosystem. For example, if sUSDS grows to 100 million, at the current yield rate of 4.5%, that would cost Sky 4.5 million USD cost per year. And various DeFi protocols’ contributions would be added to further grow Unichain.
We believe in Uniswap DAO having guidance and decision over the incentives distribution. Once per month, the strategy will be suggested to UniswapDAO where they can vote via snapshot to support the monthly incentive distribution or not.
We also strongly believe the majority of the budget that Uniswap DAO provides should be tied to objective KPIs like USDS and sUSDS supply on Unichain, which is inherently tied to TVL on Unichain.
Therefore, we propose a $1,000,000 USD budget over the course of a year with an additional $3,000,000 USD based on KPIs. In other words, only one fourth of the budget will be fixed, while the remaining part will be performance-based. The initial fixed payment will be paid in monthly installments while the performance based part will be paid at a time when the agreed upon KPIs are reached and we request the unlock by submitting on-chain proof.
In addition, 80% of the budget will be directly spent on co-incentives that focus on USDS and sUSDS growth to boost Unichain TVL and usage. For instance, additional yield for sUSDS to make sUSDS yield on Unichain more attractive or an incentivized USDS and/or sUSDS pool such as UNI-USDS on Unichain.
The remaining 20% of the budget, would be used for operations and logistics - such as coordinating with partners and also optimizing and reporting on the incentive program
KPIs
KPIs are intentionally set high to align with the DAO’s interests. Currently stablecoin market in Unichain is 279.4 million, with around 60% being USDC. The aim is to grow USDS / sUSDS to at least 100 million, which will help to increase Stablecoin market by close to 35%.
Source: DeFillama - Unichain June 4,2025
Out of $3,000,000 USD potential incentive based payment:
- USDS and sUSDS combined supply grow its TVL above 20 million USD on Unichain
- $1,000,000 USD Unlock. 80% will be used for co-incentives.
- USDS and sUSDS combined supply grow its TVL above 50 million USD on Unichain
- Additional $1,000,000 USD Unlock. 80% will be used for co-incentives.
- USDS and sUSDS combined supply grow its TVL above 100 million USD on Unichain
-Additional $1,000,000 USD Unlock. 80% will be used for co-incentives. But for this specifically, the 20% will be able to claim only in case of 90-day TVL retention after the incentives from Unichain with the 40% or above compared to the peak.
Additional Accountability and Alignment regarding KPIs
- We will share monthly updates on the distribution and use of co-incentives and relevant metrics such as:
-90-day TVL retention, with the goal of 40 % each of peak
-Net new liquidity provider addresses, with the goal of more than 1200 addresses by the end of the program
-Δ TVL / $ incentive (ROI), ≥ $12 TVL gain per $1 variable spend, measured 30 d after each unlock
- The total payment will first go to UAC, with the fixed payment disbursed monthly. Co-incentives will be distributed based on the monthly snapshot voting.
- Once a KPI is achieved in terms of reaching KPI, we will submit a request to UAC with proof.