This ARC is intended to be a discussion among Astroport community members. A formal proposal will be written after the community has reached a consensus of how the technical bounty should be managed.
The Problem for Stablecoin Pools
Currently, all Astroport LPs are pools with 2 tokens (eg. ASTRO-UST, MARS-UST, etc). In most cases, pools with 2 tokens (2pool) will fit the needs of protocols. However, this increasingly becomes trickier if we’re looking to deepen the stablecoin pools like USDC-UST. Here are the list of USDC pools that needs to be incentivised for deeper liquidity:
Firstly, this will essentially split the liquidity to 4 separate LPs, and ASTRO emissions will need to be directed to individual LPs to build up its liquidity. However, a better solution will be the implementation of a 4pool with metapool that looks like this (thanks to 0xDefi & Bitcoin_Sage for the idea):
- USDC4pool: weUSDC-wsoUSDC-wavUSDC-wpoUSDC
- Metapool: USDC4pool-UST
With the USDC4pool-UST LP, we can consolidate all 4 versions of USDC into a 4pool to be paired with UST and ASTRO emissions can be directed to this single pool to build up its liquidity.
The Problem for Forming Cartels
Perhaps by now, you’ve seen the Curve wars in full motion with the formation of 4pool on Curve Finance by ahem cartels. The formation of 4pool consisting of USDT, USDC, FRAX & UST is a pooling of Curve governance votes by Terra, Redacted, Frax Finance & OlympusDAO.
I’ve highlighted the importance of building up a deep liquidity of stableswap between UST & the other stables in my tweet here. Forming the 4pool in Astroport will bring this deep liquidity from Ethereum, Polygon, Fantom directly to our doorstep here in Terra, specifically to Astroport.
Without the contracts available to form 4pools, 3pools, or metapools, we wouldn’t be able to create a similar stablecoin pool on Astroport. With the rise of metagovernance from Apollo, Retrograde, Reactor, Orion & Spectrum, we as the Astroport community should set the stage for the stablecoin war to begin on Astroport.
I propose to raise a technical bounty for the creation of 3pool, 4pool & metapool contracts for Astroport. I’m not a dev myself, therefore, it would be great if my fellow Astroport community members could help suggest the appropriate technical bounty we should raise for the creation of these contracts. Please do feel free to chip in if anyone has any thoughts on the proposal too. Thanks.