Summary
Following the passage of the Unichain-USDS Growth Management Plan on Snapshot that echoed Unichain as the pillar of Uniswap’s growth strategy, recent months have been dedicated to refining and updating the proposal for Uniswap DAO, based on feedback from various stakeholders.
When the proposal passed, Unichain held less than 20 million USDS; since then, we’ve seen strong growth to nearly 45 million USDS on Unichain. Our aim is to accelerate this growth through strategic deployment and secured incentives from the Spark ecosystem. We have opened up sUSDC as an additional avenue for growth as it utilizes the Sky ecosystem’s mechanism and contributes to the Sky ecosystem.
Additionally, we have raised the minimum KPIs to be more ambitious and implemented a self-imposed “No result, no reward” approach to promote fairness, collaboration, and success for Uniswap DAO.
Motivation
After a period of sharp growth, Unichain’s TVL has steadily declined from over $900 million USD TVL in July 2025 to nearly half that amount in early September. The introduction of USDS, sUSDS, and sUSDC creates opportunities for enhanced collaboration among DeFi protocols. Both sUSDS and sUSDC provide yield, funded by the Sky ecosystem. For example, if Unichain sUSDS TVL grows to $100 million, at the current 4.75% yield, this would cost Sky $4.75 million USD per year. sUSDS can be a crucial driver for Unichain’s DeFi ecosystem growth, offering a stable and scalable yield source.
Furthermore, we strongly believe Uniswap DAO should guide and decide on incentive distribution. The basis is once per three months (with reduced frequency following feedback to avoid overwhelming the governance process, but potentially more frequent in the future), the strategy will be suggested to Uniswap DAO, where they can vote via Snapshot to support the incentive distribution or not.
Goal / Growth Strategy
The strategy centers on coordinating with key protocols to expand the Unichain ecosystem, notably by utilizing Sky’s competitive base savings rate. With incentives from Uniswap DAO and relevant DeFi partners, this rate can be amplified further. While additional incentives are secured, partners have emphasized that Uniswap DAO’s support is essential.
All co-incentive programs will be data-driven to ensure effective growth. Co-incentives will be spent with strategic reasoning and analytical support. Program updates will be shared once per month to communicate with the community.
Beyond 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. We will provide the report regarding strategy and rebalancing weekly.
Currently, the planned methodology for pools and lending markets is an incentive redistribution framework that reallocates a portion of rewards from the bottom 25% performing pools to the top 25% performing pools. This systematic rebalancing attracts more users, increases TVL, and improves overall bottomline metrics by concentrating incentives where they generate maximum impact.
Instead of sending all reallocated rewards directly to the top-performing pools, up to 5% of the total value will be strategically reserved to seed emerging opportunities and strengthen smaller pools. No single test pool can receive more than 2% of the total value, ensuring diversification and controlled risk.
StableLab leverages its deep ecosystem knowledge and ongoing market analysis to identify where these allocations can have the highest long-term impact. By backing promising new pools or overlooked markets at the right moment, these rewards can spark meaningful growth and unlock outsized upside for the protocol. Over time, these allocations fold back into the regular rebalancing cycle, ensuring the system continuously adapts while compounding value across the broader ecosystem.
As with the offchain proposal, Unichain DAO retains the ability to reject any proposed distribution if deemed necessary.
Budget and Duration
As mentioned above, sUSDS and sUSDC provide yield funded by the Sky Ecosystem. For example, if sUSDS grows to $100 million, at the current yield rate of 4.75%, that would cost Sky $4.75 million USD per year. Contributions from various DeFi protocols would further grow Unichain, with Spark having committed to providing additional co-incentives.
We 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.
The program will start with a budget of $1 million USD when the first Snapshot strategy vote passes after this onchain vote passes to kickstart the program. Therefore, only one-fourth of the budget will be fixed, and the remaining portion will be performance-based. The performance-based part will be paid when the agreed-upon KPIs are reached, and we request 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 optimizing and reporting on the incentive program
KPIs
KPIs are intentionally set high to align with the DAO’s interests. Following growth in USDS, and to keep interests aligned and show our commitment, we have raised KPIs by three times (from $20 million to $60 million).
Out of the potential $3,000,000 USD incentive-based payment:
- $1,000,000 USD unlock. 80% allocated to co-incentives.
- Additional $1,000,000 USD unlock. 80% allocated to co-incentives.
- Additional $1,000,000 USD unlock. 80% allocated to co-incentives.
Additional Accountability and Alignment regarding KPIs
- 30 / 60 / 90-day TVL retention, with the goal of 60 % / 50 % / 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
Summary
Following the passage of the Unichain-USDS Growth Management Plan on Snapshot that echoed Unichain as the pillar of Uniswap’s growth strategy, recent months have been dedicated to refining and updating the proposal for Uniswap DAO, based on feedback from various stakeholders.
When the proposal passed, Unichain held less than 20 million USDS; since then, we’ve seen strong growth to nearly 45 million USDS on Unichain. Our aim is to accelerate this growth through strategic deployment and secured incentives from the Spark ecosystem. We have opened up sUSDC as an additional avenue for growth as it utilizes the Sky ecosystem’s mechanism and contributes to the Sky ecosystem.
Additionally, we have raised the minimum KPIs to be more ambitious and implemented a self-imposed “No result, no reward” approach to promote fairness, collaboration, and success for Uniswap DAO.
Motivation
After a period of sharp growth, Unichain’s TVL has steadily declined from over $900 million USD TVL in July 2025 to nearly half that amount in early September. The introduction of USDS, sUSDS, and sUSDC creates opportunities for enhanced collaboration among DeFi protocols. Both sUSDS and sUSDC provide yield, funded by the Sky ecosystem. For example, if Unichain sUSDS TVL grows to $100 million, at the current 4.75% yield, this would cost Sky $4.75 million USD per year. sUSDS can be a crucial driver for Unichain’s DeFi ecosystem growth, offering a stable and scalable yield source.
Furthermore, we strongly believe Uniswap DAO should guide and decide on incentive distribution. The basis is once per three months (with reduced frequency following feedback to avoid overwhelming the governance process, but potentially more frequent in the future), the strategy will be suggested to Uniswap DAO, where they can vote via Snapshot to support the incentive distribution or not.
Goal / Growth Strategy
The strategy centers on coordinating with key protocols to expand the Unichain ecosystem, notably by utilizing Sky’s competitive base savings rate. With incentives from Uniswap DAO and relevant DeFi partners, this rate can be amplified further. While additional incentives are secured, partners have emphasized that Uniswap DAO’s support is essential.
All co-incentive programs will be data-driven to ensure effective growth. Co-incentives will be spent with strategic reasoning and analytical support. Program updates will be shared once per month to communicate with the community.
Beyond 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. We will provide the report regarding strategy and rebalancing weekly.
Currently, the planned methodology for pools and lending markets is an incentive redistribution framework that reallocates a portion of rewards from the bottom 25% performing pools to the top 25% performing pools. This systematic rebalancing attracts more users, increases TVL, and improves overall bottomline metrics by concentrating incentives where they generate maximum impact.
Instead of sending all reallocated rewards directly to the top-performing pools, up to 5% of the total value will be strategically reserved to seed emerging opportunities and strengthen smaller pools. No single test pool can receive more than 2% of the total value, ensuring diversification and controlled risk.
StableLab leverages its deep ecosystem knowledge and ongoing market analysis to identify where these allocations can have the highest long-term impact. By backing promising new pools or overlooked markets at the right moment, these rewards can spark meaningful growth and unlock outsized upside for the protocol. Over time, these allocations fold back into the regular rebalancing cycle, ensuring the system continuously adapts while compounding value across the broader ecosystem.
As with the offchain proposal, Unichain DAO retains the ability to reject any proposed distribution if deemed necessary.
Budget and Duration
As mentioned above, sUSDS and sUSDC provide yield funded by the Sky Ecosystem. For example, if sUSDS grows to $100 million, at the current yield rate of 4.75%, that would cost Sky $4.75 million USD per year. Contributions from various DeFi protocols would further grow Unichain, with Spark having committed to providing additional co-incentives.
We 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.
The program will start with a budget of $1 million USD when the first Snapshot strategy vote passes after this onchain vote passes to kickstart the program. Therefore, only one-fourth of the budget will be fixed, and the remaining portion will be performance-based. The performance-based part will be paid when the agreed-upon KPIs are reached, and we request 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 optimizing and reporting on the incentive program
KPIs
KPIs are intentionally set high to align with the DAO’s interests. Following growth in USDS, and to keep interests aligned and show our commitment, we have raised KPIs by three times (from $20 million to $60 million).
Out of the potential $3,000,000 USD incentive-based payment:
- $1,000,000 USD unlock. 80% allocated to co-incentives.
- Additional $1,000,000 USD unlock. 80% allocated to co-incentives.
- Additional $1,000,000 USD unlock. 80% allocated to co-incentives.
Additional Accountability and Alignment regarding KPIs
- 30 / 60 / 90-day TVL retention, with the goal of 60 % / 50 % / 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
Optimism provided 2,000,000 OP to Spark to deploy on Optimism + Unichain. Those funds are already financing 1/3 of the yield on sUSDS on Unichain. We would prefer to see what USDS supply looks like after those user incentives are exhausted, and it doesn’t make sense to further subsidize users holding sUSDS on Unichain with the existing 7% yield. This is especially important given that neither sUSDS nor USDS appear to be integrated into the DeFi ecosystem on Unichain. There appears to not even be a Uniswap pool with USDS or sUSDS on Unichain, nor is USDS or sUSDS integrated in lending markets like Morpho or Euler on Unichain.
Optimism provided 2,000,000 OP to Spark to deploy on Optimism + Unichain. Those funds are already financing 1/3 of the yield on sUSDS on Unichain. We would prefer to see what USDS supply looks like after those user incentives are exhausted, and it doesn’t make sense to further subsidize users holding sUSDS on Unichain with the existing 7% yield. This is especially important given that neither sUSDS nor USDS appear to be integrated into the DeFi ecosystem on Unichain. There appears to not even be a Uniswap pool with USDS or sUSDS on Unichain, nor is USDS or sUSDS integrated in lending markets like Morpho or Euler on Unichain.
The tiered, performance-based KPIs are ambitious but clear. Moving beyond simple TVL to include metrics like retention rate, new LP addresses, and a specific ROI target ($12 TVL gain per $1 spent) shows a mature approach focused on sustainable, long-term growth. The 80/20 budget split for incentives vs. operations is also a healthy standard.
The tiered, performance-based KPIs are ambitious but clear. Moving beyond simple TVL to include metrics like retention rate, new LP addresses, and a specific ROI target ($12 TVL gain per $1 spent) shows a mature approach focused on sustainable, long-term growth. The 80/20 budget split for incentives vs. operations is also a healthy standard.
Thank you for your detailed proposal.
I would like to offer a new KPI that is more aligned with the interests of Unichain:
Aggregate growth in Stablecoin supply on Unichain.
Your proposed KPIs have an important loophole allowing for program success if existing stablecoins are swapped to USDS / sUSDS.
Thank you for your detailed proposal.
I would like to offer a new KPI that is more aligned with the interests of Unichain:
Aggregate growth in Stablecoin supply on Unichain.
Your proposed KPIs have an important loophole allowing for program success if existing stablecoins are swapped to USDS / sUSDS.
For example, if current Unichain users swap $100M of existing USDC to sUSDC, you will achieve your KPI without any increase in overall TVL on Unichain.
If the success metric is TVL, we should target net new supply of stablecoins on Unichain.
Thank you for your detailed proposal.
I would like to offer a new KPI that is more aligned with the interests of Unichain:
Aggregate growth in Stablecoin supply on Unichain.
Your proposed KPIs have an important loophole allowing for program success if existing stablecoins are swapped to USDS / sUSDS.
Thank you for your detailed proposal.
I would like to offer a new KPI that is more aligned with the interests of Unichain:
Aggregate growth in Stablecoin supply on Unichain.
Your proposed KPIs have an important loophole allowing for program success if existing stablecoins are swapped to USDS / sUSDS.
For example, if current Unichain users swap $100M of existing USDC to sUSDC, you will achieve your KPI without any increase in overall TVL on Unichain.
If the success metric is TVL, we should target net new supply of stablecoins on Unichain.
I think there could be some aspects that can be discussed but then what you suggested actually might be less aligned with the interests of Unichain. Because that would mean even if Sky ecosystem growth in Unichain remains the same, if there’s aggregate growth in stablecoin supply on unichain due to other factors, then we would be able to hit this new KPI thanks to others. So it has pros and cons
I think there could be some aspects that can be discussed but then what you suggested actually might be less aligned with the interests of Unichain. Because that would mean even if Sky ecosystem growth in Unichain remains the same, if there’s aggregate growth in stablecoin supply on unichain due to other factors, then we would be able to hit this new KPI thanks to others. So it has pros and cons
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