Incentivise upcoming v2 Prism Protocol cLUNA/LUNA liquidity pools in Astroport. The purpose of this proposal is to create a deep stableswap pool of cLUNA/LUNA on Astroport to support Prism Protocol’s assets.
The proposed alloc_points for cLUNA/LUNA is 15k.
Prism Protocol is a Terra native derivatives protocol that allows users to refract digital assets into two distinct parts: a yield component & principle component. This allows users to access the utility of its individual parts separately. With over $500mil locked in Terra v1 pre-LUNA crash, Prism Protocol has indicated a massive relaunch with a new roadmap with a renewed focus on fixed term Prism assets.
With over $500mil TVL locked in Terra v1, Prism Protocol was a blue chip protocol that amassed its own community, sustainable revenue fee generation with a stable 20% APR on its own governance token. In the recent Emergency LUNA allocation to Terra builders proposal, Prism Protocol has indicated that they’re relaunching on Terra v2 after accepting the emergency LUNA allocation.
The motivations to incentivise the cLUNA/LUNA pool were:
- Incentivise Prism Protocol to utilise Astroport’s stableswap pools as its default pools for future Prism assets like fixed term LUNA (eg. 12month yLUNA).
- Leverage on Prism Protocol’s strong community following on Discord, Twitter & Telegram.
- Bring about higher swap volume due to the speculative nature of fixed term assets.
With several protocols deciding against launching on Terra v2, this allows Astroport to solidify its position as the default DEX and its role to support one of the key protocols on Terra v2. An incentivised cLUNA/LUNA LP will ensure that a deep liquidity is built on Astroport from the get-go.
Benefits for xAstro holders:-
- Higher swap volumes due to the speculative nature of Prism assets.
- Higher swap volumes translates to higher buyback on ASTRO tokens, which equates to higher APR for xASTRO holders.
- Disincentivising Prism to be sniped by orderbook protocols launching throughout the Cosmos ecosystem.
Benefits for LUNA ecosystem:-
- Increasing diversity of validators & voting power of delegated LUNA by implementing proxy governance on Prism Protocol rather the inaction of liquid staking protocols to implement proxy governance.
- Establishing an innovative protocol on Terra that isn’t seen on other chains.
Should this proposal be passed, the cLUNA/LUNA stableswap pool will be incentivised with 31.5k ASTRO tokens daily (~$1,256/daily, assuming ASTRO = $0.0399).
At an average of LUNA staking of 12.7% APR, we will see no less than $3.6mil TVL on the cLUNA/LUNA stableswap pool. This builds up a deep liquidity pool on Astroport for lending protocols to utilise the TWAP of cLUNA directly from Astroport.
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