ARC-20: Terra 2's First Dual Incentive Proposal VKR<>axlUSDC

Proposals
1

VALKYRIE PROTOCOL’S DUAL INCENTIVE PROPOSAL

Summary

This is a proposal to add dual incentives to the VKR<>axlUSDC pool on Astroport ($VKR & $ASTRO token emissions). As one of the first launching protocols on Terra 2, Valkyrie has launched to become an established launchpad and DApp activation protocol. The purpose of this proposal is to receive feedback from the community about this idea and gather thoughts regarding the rewards before putting up a poll.

Abstract

Valkyrie is among the first legacy protocols to re-launch onto Terra 2. Valkyrie Protocol aims to become an established launchpad as well as continue its legacy as a DApp Activation Protocol on the new Terra Blockchain. Valkyrie will have referral based, experience-focused campaigns that aim to revive the Terra ecosystem and gain greater user adoption and growth for launching protocols.

For more details about Valkyrie’s Tokenomics, please refer to the docs on: here

Motivation

Valkyrie Protocol has successfully launched onto Terra 2.0 in order to fully establish and support the new blockchain ecosystem. As aforementioned above, Valkyrie is the first and only launchpad destination for protocols to launch onto the blockchain. It also is the only protocol built specifically to help activate growth for other protocols. Valkyrie’s role is more important than ever for the Terra community to revive.

To further help grow the community, Valkyrie is seeking to amplify its rewards through Astroport’s dual incentive program.

Specification

In order to maintain deep liquidity in the VKR-axlUSDC pool while sustaining attractive staking rewards, we propose a dual incentive campaign involving both $VKR and $ASTRO tokens.

We propose that the Astral Assembly provides rewards with $VKR pool incentives which would be equivalent (given the current $VKR = 0.015) to approximately 5480 ASTRO tokens per day ( 2,000,000 ASTRO per year)

The estimated dual rewards APR is shown below for various levels of liquidity (estimated APR values assume that $VKR = $0.01, $ASTRO = $0.03)

Screen Shot 2022-07-20 at 12.07.07 PM

At the current liquidity (as of Jul 20, 2022) the figures will simulate the below assuming the prices of both VKR and ASTRO remains constant.

Liquidity in VKR-axlUSDC Pool VKR Rewards APR ASTRO Rewards APR Total APR
$1,450,000 2.91% 4.14% 7.05%

REQUEST

We request the Astral Assembly and the Astro Community for comments and feedback on the above proposal. As the first dual incentive proposal, Valkyrie is seeking your most favourable consideration and is excited to help others launch and build a more secure ecosystem on Terra 2!

2 Likes
2

Hey guys, thanks for raising this proposal. While I understand that you have quite an aggressive token emission to incentivise the pair, I’d like to know how does Valkyrie plan to increase volume trading of the VKR-axlUSDC pair since trading volume will drive value accrual to Astroport.

Looking forward to hear your plans.

3

Hi thanks for the reply. Apologies for not getting back earlier.

The plan for VKR is to increase demand and utility for the token to increase trading volume. We have some great campaigns lined up, and as the ecosystem continues to mature and other protocols launch onto Terra, we’ll be offering diverse campaigns that require liquidity exchange of the VKR.

Through a series of token launches, smart airdrop and smaller scale campaigns that require VKR, we expect greater participation of the VKR-USDC pool on Astroport.

1 Like
4

Thanks, what would be the alloc_points you’re requesting ? To keep Astroport as the main DEX on Terra, it’ll be good to support protocols like yourself.

5

Hi @valkyrie_money, are there any planned protocol integrations in pipeline?
In other words, are you already helping any protocols launch? If so, could you please share what these protocols are? Thanks!

6

Yes – we’re going to launching our own campaign first of all that will require VKR as a base reward and requirement for participating onto campaigns. We have our first publicly announced IPC with a P2E platform called Terra Poker: https://twitter.com/valkyrie_money/status/1549750008513445888 for example. We’re working with 2 other protocols at the moment, but they haven’t come up publicly yet, so we’ll keep those anon for now :slight_smile:

As more protocols launch, we’re looking at the pipeline to partner up. Please send any additional info our way!

7

Updated table with current LP and token price:

1 $VKR = 0.015
1 $ASTRO = 0.06
Annual Expected $VKR 2,812,500
Annual Expected $ASTRO 2,000,000
Liquidity in VKR-axlUSDC Pool VKR Rewards APR ASTRO Rewards APR Total APR
$1,000,000 4.22% 12.00% 16.22%
$2,000,000 2.11% 6.00% 8.11%
$5,000,000 0.84% 2.40% 3.24%
$10,000,000 0.42% 1.20% 1.62%
$20,000,000 0.21% 0.60% 0.81%
8

current VKR-USDC liquidity is $265k with a whopping 443% APR.
if this isnt attracting liquidity, I dont see how a dual incentive would?

i feel it is too early to talk about a dual incentive. maybe after the first IPC launch we get a sense of how much liquidity we actually need, and by the way how much liquidity is Valkyrie targeting ( and think it needs to be effective )?

<>