Hi @lunatic / @0x7881 , I agree that axlUSDC-USK isn’t the best solution but due to the lack of utility on Terra at the moment, directing $1.114mil of ASTRO emissions to a USDT pool with no utility is just a huge waste. I do not have the data currently, but I would assume that USDT/USDC LPs will immediately sell their ASTRO rewards to further compound into the USDT/USDC pool. (Perhaps this is something @IncioMan could comment with his Flipside analyses)
Taking cue from @IncioMan’s comments, we could redirect half the allocation points to USK from USDT to build up liquidity for some utility. I’m all for building for Terra, but currently, we just do not see much reason to incentivise USDT pools.
Should the community not be supportive of incentivising USK pools, perhaps the bigger question is whether the current ASTRO emissions are well-utilised.
Here are the list of incentivised pools:
- LUNA-axlUSDC
- ASTRO-axlUSDC
- axlUSDT-axlUSDC
- LUNAx-LUNA
- VKR-axlUSDC
No doubt we will need to incentivise LUNA-axlUSDC & ASTRO-axlUSDC pools. Being one of the first Terra dApp to be deployed, VKR-axlUSDC should stay incentivised.
For LunaX-LUNA & axlUSDT-axlUSDC pools, we ought to revisit the allocation points given to these pools.
Re-allocation of alloc_points under LunaX for other LSDs
Concentrating the emissions to a single LSD might just result in the same situation ETH is having with Lido Finance where a large chuck of ETH staked are staked in Lido. I am supportive of sharing the emissions for LunaX to the other LSDs like ampLUNA & STEAK. Having multiple LSDs will ensure that protocols like Capapult will have several collateral options to back their $SOLID stablecoin rather than concentrating it to a single LSD token.
Re-allocation of alloc_points under USDT/USDC LP
As I’ve mentioned above, the current $1.1mil annual emission are wasted to incentivised USDT which have no utility. Should the community not be supportive of USK incentives, I rather route the alloc_points to $ampLUNA, $STEAK, $RED pools that have better utility than USDT. The current $8mil pooled in USDT isn’t large enough for whales to bridge to Terra & make those swaps.