Hi @John_Galt , I’d like to re-iterate my points laid on Discord.
Not incentivising ASTRO-LUNA pool
We currently have both LUNA-axlUSDC & ASTRO-axlUSDC incentivised. There is no point wasting ASTRO emissions into LUNA-ASTRO since users are able to swap LUNA to ASTRO via axlUSDC which are both relatively well incentivised. Even in Terra Classic, LUNA-UST and ASTRO-UST are the only two pools incentivised, and not LUNA-ASTRO because it’ll be a waste of emissions. The current trading activity you see on LUNA-ASTRO is the result of arbing opportunities between LUNA-axlUSDC & ASTRO-axlUSDC pools. Even without incentives, this pool will be able to provide a decent APR for LPs.
Reduce emissions to axlUSDT-axlUSDC
I agree that this pool should have a reduction from their current alloc_points of 10,000 due to the lack of utility for USDT on Terra.
Incentivising a second LSD Luna token, ampLUNA
I’d like to iterate my point that we should look at decentralising the LSD derivatives on Terra from the get-go. Rather than splitting the emissions over various LSDs, I suggest we go with Eris Protocol’s ampLUNA as an alternative to LunaX. Keeping emissions to LunaX will just breed complacency, and Eris Protocol indicated that they will continue to build on Terra. This is certainly a better signal of a protocol committing itself to Terra compared to Stader Labs, which have gone radio silence since the Terra emergency grants and only markets itself as 20% returns.
Capapult is currently building a stablecoin, SOLID, on Terra & they have indicated that they will be lockdropping their CAPA tokens to LUNA LPs. The APR for the LSD pools will certainly be the main pools that they will be lockdropping to ensure there are sufficient liquidity in them. By building up ampLUNA-LUNA’s liquidity, Capapult will be able to lock ampLUNA-LUNA LPs & LunaX-LUNA LPs into Astroport & further build up the liquidity.
Other LPs for Future Considerations
The other two LPs that we could consider could be USK-axlUSDC & ATOM-LUNA. I’ve laid out the proposal for USK-axlUSDC, but due to an USK IBC error on Terra, I’m placing it on hold. ATOM is widely available in centralised exchanges & widely accepted throughout Cosmos. Having a deep ATOM-LUNA LP will allow seamless onboarding of Cosmos users.
Therefore, I’m proposing the following alloc_points adjustments.
| Astroport Pools | Current alloc_points | Proposed alloc_points | % of total emissions |
|---|---|---|---|
| VKR-axlUSDC | 2,050 | 2,050 | 2% |
| ASTRO-axlUSDC | 30,000 | 30,000 | 29.397% |
| LUNA-axlUSDC | 40,000 | 40,000 | 39.196% |
| LUNA-LunaX | 15,000 | 10,000 | 9.799% |
| axlUSDT-axlUSDC | 15,000 | 10,000 | 9.799% |
| ampLUNA-LUNA | 0 | 10,000 | 9.799% |
| Total | 102,050 | 102,050 |