Countdown: Spaceship Sovryn to Planet Uniswap

brought to you by Edan Yago

April 28, 2021

First there was Bitcoin, the birth-star of crypo-economic civilization. This civilization birthed many child-civilizations that spread out across the crypto-galaxy. These offshoots were cut off from the mother-system until the invention of bridges - wormholes allowing fast travel between systems.

Meanwhile, orbiting the Bitcoin mother-star, the Sovryns constructed a technologically advanced Ringworld. To reconnect the child-systems with the Bitcoin homeworld, the Sovryns, constructed bridges. Now a bridge to perhaps the most important child-system, Ethereum, was ready. The time had come to bind the entire crypto-galaxy together once more, with Bitcoin at its core.

Intergalactic SOV

Allowing SOV (eSOV) to trade on Uniswap (and other Ethereum dapps) will open Sovryn up to a much larger audience, bringing greater awareness of the project. It will bridge Sovryn with the Ethereum community and ecosystem.

Transferring funds over the bridge to Ethereum can be extremely expensive due to Ethereum gas fees. Interacting with the Uniswap contract is similarly expensive. To avoid subjecting Sovryn users to these costs, while still enabling them to provide incentivized liquidity to Uniswap, we propose a contract to aggregate provided funds into one transaction.

Funds will be deposited into a Sovryn escrow account, allowing Sovryns to contribute SOV in advance. Funds will then be bridged to Uniswap and a trading pool initiated.

The SOV contributors will be able to earn 60% APY or more.

How Will it Work?

  1. An Escrow Contract will be created to allow SOV holders to act as liquidity providers on Uniswap.
  2. The escrow contract will be an exchequer multi-sig, with the ability to transfer SOV over the bridge to Ethereum.
  3. LPs (liquidity providers) who provide SOV to the escrow will receive Staked SOV rewards.
  4. The Rewards will be provided in the form of Locked SOV, to allow users to convert to staked SOV when they choose, and to save gas fees.
  5. Vesting contract gas fees can cost about $6 USD. Locked SOV allows users to choose to create the vesting contract when they have accumulated enough loot that this fee would not be too expensive.
  6. Rewards will cover any impermanent loss, provide an additional 5% SOV for the month (60% APY) and also provide the trading fees (APY unknown).
  7. There will be a hardcap on the amount of SOV that can be contributed. This will initially be set to 75K SOV, although this may be increased if enough ETH is also contributed.
  8. SOV contributed will be locked in the escrow for 1 month.
  9. There will be a 3 day period to deposit SOV into the escrow before the funds are bridged to Ethereum.
  10. It is currently planned to also create an escrow to provide ETH for the SOV/ETH Uniswap pool.

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