ARC-114: Add ASTRO Dual Incentives to the SOLID-axlUSDC and CAPA-SOLID pools

Proposals ARC (Astroport Request for Comments)
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Summary

This proposal aims to seek approval from the Astral Assembly for Dual Incentives within the following two pools on the Terra mainnet deployment of Astroport: SOLID-axlUSDC and CAPA-SOLID. Both pools meet all the criteria set by the Astroport Incentives Framework to be eligible for ASTRO incentives.

Abstract

Capapult is a revolutionary fully decentralized borrowing protocol that introduced SOLID, the first native stablecoin in the Terra 2.0 ecosystem. Our objective is to continue to contribute in fulfilling the need for a decentralized currency with low volatility. Supporting SOLID and Capapult means supporting decentralization within the Terra ecosystem and a belief in a better decentralized future.

This proposal aims to seek approval from the Astral Assembly for Dual Incentives within the following two pools on the Terra mainnet deployment of Astroport:

• SOLID-axlUSDC
• CAPA-SOLID

It is important to emphasize that both pools meet all the criteria set by the Astroport Incentive Framework:

  1. “The pool has been trading on Terra 2 mainnet (Phoenix network) for at least 4 weeks”

Both pools were created in March 2023, so they meet this requirement.

  1. “LPs in the pool should already receive token emissions (using the Astroport dual reward feature)”

Following the approval of both the Capapult Governance Proposal #2 and the ARC-70, the two pools have already been incentivized with CAPA tokens for several months.

  1. “Dual rewards should continue for at least 4 weeks from the moment (and in case) the Assembly passes a vote to direct ASTRO emissions to the pool”

As mentioned before, 10 million CAPA have been allocated as incentives for the two pools, specifically:

• 7 million CAPA for the SOLID-axlUSDC pool
• 3 million CAPA for the CAPA-SOLID pool

These incentives will be distributed over the course of 2 YEARS, highlighting Capapult’s goal of continuing to collaborate effectively and consistently with Astroport and its users.

  1. “The target ratio of fees to incentives should be 0.4, in line with those of Osmosis and Sushiswap as shown above”

In order to calculate the amount of ASTRO tokens per block that should be allocated to the two pools we made the following assumptions and observations:

• Terra block times are ~6 seconds
• The amount of ASTRO distributed per Terra block is approximately 0.05208 ASTRO
• We assumed an $ASTRO price equal to $0.050

• SOLID-axlUSDC:

  • Total Volume = $144,310
  • Fees Earned = $72.23
  • Fees/Day = $2.33

• CAPA-SOLID:

  • Total Volume = $71,228
  • Fees Earned = $213.59
  • Fees/Day = $6.89

• We target a 0.4 fees to emissions ratio

With these points in mind, we propose the following rewards distribution:

• SOLID-axlUSDC: 0.02 ASTRO / BLOCK
• CAPA-SOLID: 0.01 ASTRO / BLOCK

The allocation of rewards in ASTRO, in addition to those already active in CAPA, will lead to an increase in liquidity for the two pools and a rise in trading volume, ensuring an even more stable market for SOLID and attracting more users to the platform. SOLID is gaining increasing importance as the reference decentralized stablecoin in the Terra ecosystem and it is crucial to ensure that the token has sufficient liquidity, especially within the main DEX of the chain.

Furthermore, ASTRO Stakers will benefit as part of the trading fees will be redistributed to them.

We are strongly convinced that incentivizing these pools can bring significant benefits to the Astroport ecosystem and to all Terra users. We sincerely hope that the Astral Assembly can support our proposal.

3 Likes
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Overall supportive of the initiative to add these pools to emissions. Some comments:

  • why have you only taken the volumes from the last 31 days rather than a longer period? Feels like gaming of the system.

  • why assumed ASTRO price of 0.5 when it’s trading 30% higher?

  • which pools will you be diluting incentives from?

2 Likes
3

Full support.

Terra and TFL provide massive value to Astroport.

If a simple prop like this, supporting the Terra ecosystem on fair terms and based on the incentive framework is not provided, the community and TFL should reconsider deploying capital and incentives to Astroport.

2 Likes
4

Hi,
The fees from the last astro proposal are computed using the last 30 days of volumes.

Astro price when we wrote the proposal was at 0.5

1 Like
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Hi @Capapult , thanks for raising this, however , I do want to establish the need for a deeper CAPA/SOLID and Solid/axlUSDC pool. The utility for CAPA and SOLID remains low across the board at the moment , but I do understand the need for a deeper pool to build utility on top of it.

Perhaps you could shed some light into what sort of utility will SOLID and CAPA has, and how would those utility builds volume on Astroport . What is the desired liquidity for such conversations to happen and how much trading volume will you anticipate once those utility goes live?

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great idea… CAPA is a great project with major potential.

LOVE the Solid <> CAPA mechanism…

They will attract major liquidity.

1 Like
7

Totally support it.
Soon Btc liquidity coming to Capapult.
$CAPA massive turbo bull run soon.

TPT-LUNA incentive have been removed while ago since then it has not been replaced with any other pool when it comes to incentive.
Waiting for SOLID-axlUSDC and CAPA- SOLID incentives

1 Like
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Totally support it.)

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@everyone Help Capapult to pass this proposal.
Terra fee sharing is live on Astroport which will immensely benefit and help to fire up the Astroport Economy.
For more details you can checkout below:

Kindly reciprocate and help Terra projects.

Waiting for positive response from every community member in astroport to support and vote to pass this proposal.

2 Likes