Now that Astroport has relaunched on Terra2 and Lido decided that stLUNA will not be relaunched on Terra2 (Snapshot), the Astroport LunaX-LUNA is currently the only stableswap LUNA pool incentivised.
It is prudent that the Terra community has multiple options for LUNA liquid staking derivatives, the other two possible liquid staking derivatives will be: STEAK & ampLUNA.
The current fee structure for STEAK-LUNA is on a xyk pool, which is unfavourable for lending protocols due to the high slippage when swapping, hence, a stableswap pool should take precedence. With the upcoming protocols coming to live in Terra2, it is imperative that we have sufficient liquidity in Astroport for these LP pools. With Steak protocol audited by SCV (PublicReports/St4k3h0us3 - Steak Contracts Audit Review - v1.0.pdf at main · SCV-Security/PublicReports · GitHub), I proposed the following:
- Recreate a stableswap (0.05% fee) STEAK-LUNA LP.
- Allocate equal alloc_points to STEAK-LUNA LP as LunaX-LUNA LP.
- Replace both stableswap LunaX & STEAK stableswap pools with metastable pools, developed by Lido Finance for Astroport (Discord). For context, read @Archkiwi’s post here.
With the allocation, the incentivisation will create a deep liquidity of STEAK as an alternative to LunaX, in place of stLUNA, for upcoming lending protocols like Edge Protocol.