UPDATE: The alloc_point LunaX-LUNA is proposed to be 66,650, not 105,000 which was incorrectly referenced in the text. This has been corrected.
References
- Astroport STEAK-LUNA pair
- Astroport STEAK-LUNA LP token
- Steak homepage
- Steak Twitter account
- Steak Telegram group
- Steak smart contract source code
- Steak webapp source code
- Audit of Steak smart contract v1.0.0-rc0 by SCV
Summary
Add STEAK-LUNA pool to Astroport and reward LPs with ASTRO incentives.
Abstract
Steak is a Luna liquid staking protocol similar to Lido and Stader. Users stake Luna to mint STEAK token, which represents their ownership of the staked Luna and can be used in DeFi applications. As staking rewards are accrued, the exchange ratio between STEAK and Luna changes, with each STEAK becoming worth more Luna.
Compared to other liquid staking protocols, Steak has the following characteristics:
- Zero fee or commission: no useless governance token to siphon value from users;
- Zero money raised from VCs: developers worked completely voluntarily, paying for expenses out of their own pockets;
- Committed to support non-institution, community-based validators, especially those who contribute to open source projects, run self-hosted servers (instead of cloud-based ones), and provide crucial infrastructure services for the Cosmos ecosystem (e.g. IBC message relaying).
Motivation
We believe a healthy competition between multiple Luna liquid staking tokens is crucial for our network’s economic security. Having a big proportion of staked Luna controlled by only one or two protocols is dangerous, especially if such protocols: 1) are not subject to the governance of Luna holders, and 2) are under heavy influence of VCs and institutions.
Further more, Steak will help empower validators who contribute value to our network, instead of many of the institutional validators who do not participate in governance, do not engage with the community, do not contribute to the growth of Terra DeFi, most often pumped to the top of the validator leaderboard through the not-so-transparent election process of certain liquid staking protocol(s).
Therefore, we believe it is highly beneficial for Terra, and hence for Astroport as well, to incentivize STEAK liquidity, which increases its utility and adoption in Terra DeFi.
Specification
We propose that the Astral Assembly rewards the STEAK-LUNA LPs with an alloc_point value of 94,000 in the Generator contract, which results in 20,399 ASTRO tokens per day or 7.45M ASTRO per year.
This is comparable to the level of incentivization given to stLUNA-LUNA (alloc_point of 94,000) and LunaX-LUNA (alloc_point of 66,650 proposed).
The estimated APY is shown below for various levels of liquidity.
| Liquidity in STEAK-LUNA | ASTRO APR |
|---|---|
| $50,000,000 | 44.2% |
| $100,000,000 | 22.1% |
| $150,000,000 | 14.7% |
| $200,000,000 | 11.1% |
| $250,000,000 | 8.8% |
| $300,000,000 | 7.4% |
Note that the above calculation assumes:
- a year has 365 days
- block time of 6.8 seconds
- ASTRO price of $2.97
Copyright
Copyright and related rights waived via CC0.
