UPDATE 2022-10-06
As decided on the vote in the discord, axlUSDC-axlUSDT pool will not be changed and the initial proposal will only touch ampLuna-Luna and LunaX-Luna
References
- ampLUNA-LUNA pair: Terra Finder
- ampLUNA-LUNA LP token: Terra Finder
- Eris Protocol: www.erisprotocol.com
- Eris Twitter: https://twitter.com/eris_protocol
- Eris Telegram: Telegram: Contact @eris_protocol
- Eris Terra Classic Smart Contracts: GitHub - erisprotocol/contracts-terra: Liquid staking protocol for Terra 2
- Audit: PublicReports/Eris Protocol - Amplified Staking - Audit Report v1.0.pdf at main · SCV-Security/PublicReports · GitHub
Due to the similarity to STEAK, parts of the proposal have been applied from ARC-18: Incentivize STEAK-LUNA liquidity
Proposal
Incentivise ampLUNA-LUNA LP with ASTRO incentives & reduce LunaX-LUNA incentives to create two equally incentivised Liquid Staked Derivate (LSD) pools.
Allocate 10,000 alloc_points to ampLUNA-LUNA LP & reduce LunaX-LUNA LP alloc_points from 15,000 to 10,000.
Background
ampLUNA is the Terra 2 Version of the Eris Protocol Liquid Staking Derivate (LSD). It is similar to Lido, Stader, Prism and a fork of Steak. Users deposit / stake LUNA and receive ampLUNA in return. ampLUNA can be seen as a receipt to receive back the deposit with all auto compounded rewards. As staking rewards are autocompounded, the exchange ratio between ampLUNA and LUNA changes, with each day ampLUNA becoming worth more LUNA. More details can be found in our docs:Amplifier
While we are a fork of previously developed Steak by Larry0x [Twitter: https://twitter.com/larry0x] on Terra Classic, we are not affiliated with him in any way, but want to continue developing around the protocol and bring all amp[TOKEN] from within cosmos to Terra 2 DeFi.
We try to continue with the same philosophy set by STEAK, with the difference that we have a 5% protocol reward fee, to support further development and transaction fees. Also our vision for developing Eris Protocol goes further than only liquid staking on Terra alone: https://docs.erisprotocol.com
We want to provide Terra with the possibility to become the LSD Liquidity Hub and ideally on Astroport. That means we will work on using IBC to make any COSMOS staking coin available natively on Terra. Having native liquidity on one cosmos DEFI chain brings many integration benefits for other DeFi products. Instead of introducing asynchronous complexities, dApps can seamlessly integrate with any yield generating token. E.g. providing collateral for borrowing or a Cosmos wide Stablecoin backed by the whole Cosmos Ecosystem. Protocols like Nebula Protocol [Twitter: https://twitter.com/nebula_protocol] will be able to develop ETFs with Cosmos L1 tokens with these LSD tokens.
While providing Terra with all different amp[TOKEN] we will bring ampLUNA to all other chains and open up IBC for CW20 transfers to the connected chains.
We do not intend to launch our own governance token as we would prefer for any protocol revenue to be transferred back to amp[Tokens] in their respective chains. We are fully self funded and we intend to keep it that way.
- 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). All our validators are monitored for governance and community participation.
Motivation
The points made by Larry0x in ARC-18 are still applicable to ampLUNA:
“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.
Furthermore, [ampLUNA] 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 ampLUNA liquidity, which increases its utility and adoption in Terra DeFi.”
Right now the only LSD pair incentivized by Astroport is LunaX-LUNA, while Stader is expanding to other ecosystems and not providing additional value to Astroport or the Terra Ecosystem, even not fulfilling their initial pledge of providing SD tokens as dual incentives.
As we are not providing a platform token and want to provide RealYield to ampLUNA and Staking users, we are not able to provide dual rewards for the ampLUNA-LUNA pool. The value we will provide is our full focus on developing on Terra, rebuilding the DeFi and providing the possibility of any protocol using the whole spectrum of liquid staked assets of Cosmos on Terra. We are not funded by VCs which allows us to fully focus on the community.
There is a war for LSD liquidity coming to cosmos with many contenders like Stader, Stride and Quicksilver. Many are focusing on having their own app chains or launching on Osmosis. With the help of the Astroport Community we want to bring the LSD Liquidity Hub to Terra, as this will benefit both Astroport as well as Terra the most, while increasing volume, TVL and DeFi possibilities.
Specification
We propose that the Astral Assembly incentivise the ampLUNA-LUNA LP with an alloc_point value of 10,000 in the Generator contract and reduce incentives to LUNA-LunaX LP and axlUSDC-axlUSDT LP to 10,000 to keep both pools with similar alloc_points, thus, ensuring a fair emission for both LSDs. Any future changes in the alloc_points can be determined via gauges or further proposals.
The alloc_points for axlUSDT-axlUSDC is planned to be reduced by 5000 points in ARC-29, so the alloc_points only have been moved between pairs. (5000 from LUNA-LunaX and 5000 from axlUSDT-axlUSDC)
| Astroport Pools | Current alloc_points | Proposed alloc_points |
|---|---|---|
| LunaX-LUNA | 15,000 | 10,000 |
| ampLUNA-LUNA | 0 | 10,000 |
On Chain Message
[
{
"order": "1",
"msg": {
"wasm": {
"execute": {
"contract_addr": "terra1ksvlfex49desf4c452j6dewdjs6c48nafemetuwjyj6yexd7x3wqvwa7j9",
"msg": "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",
"funds": []
}
}
}
}
]
Copyright
Copyright and related rights waived via CC0.
