ARC-30: Incentivise ampLUNA-LUNA liquidity on Terra

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


Due to the similarity to STEAK, parts of the proposal have been applied from ARC-18: Incentivize STEAK-LUNA liquidity


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.


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:] 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:

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:] 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.


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.


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 and related rights waived via CC0.

1 Like

We will also hold an astroport community AMA next week about our proposal. The announcement will follow.

Thanks for the proposal, @Philipp. I support the proposal for the reduction of LunaX & increasing allocations to ampLUNA.

I believe that incentivising this pool will allow:

  1. Producing an alternative Liquid Staked Derivative of LUNA to decentralise LSD dominance of Stader. With Lido’s decision not to relaunch on Terra, an alternative LSD will be needed to ensure the LSD of LUNA is not dominated by a single protocol.
  2. Eris’ vision of rebuilding on Terra & attracting liquidity back to Astroport is key. (Link to the community call with Eris below)

To the Astroport community, I’ve recently co-hosted a community call with @FarmerTuHao to speak to Eris on their vision on how Eris plans to bring DeFi back to Terra & Astroport:

The proposed changes to the alloc_points will be as follow:

Reduction of LunaX-LUNA LP allocation points
LunaX-LUNA LP: terra1mpj7j25fw5a0q5vfasvsvdp6xytaqxh006lh6f5zpwxvadem9hwsy6m508
Allocation Points: Reduce from 15,000 to 10,000

Increase of ampLUNA-LUNA LP allocation points
ampLUNA-LUNA LP: terra1cr8dg06sh343hh4xzn3gxd3ayetsjtet7q5gp4kfrewul2kql8sqvhaey4
Allocation Points: Increase from 0 to 10,000

1 Like

– update now written in the main post –

Proposal has been submitted on chain, please vote on it.

1 Like

I’m a bit late to comment on this as there’s only 9h remaining on the vote, but I see why Astroport would want to incentivize ampLUNA-LUNA with $5.6k worth of ASTRO per day at current prices. The pool has 37k liquidity and did only $615 of volume over the last 24h, indicating very limited demand. In addition no (potential) dual rewards are offered. Something Stader did offer for the lunaX-LUNA pool (thought they haven’t activated the rewards from their side yet), which pools is proposed to get slashed.

For the me to feel comfortable with incentivizing the ampLUNA-LUNA pool, I’d like to see actual demand displayed in a significantly increased volume vs liquidity ratio. Before assigning incentives.

In general I feel like the Astroport community should re-evaluate the current amount and distribution of incentives handed out carefully. As I feel like Astroport isn’t getting a great return on the incentives paid out atm, to say the least.

I see your point. However, the truth of the matter is that most pairs do not have sufficient utility to generate a good return for Astro holders.

If you see the back of the envelope calculation above, you can see even the deepest LSD, LUNAx pool struggles to generate sufficient fees to justify its ASTRO rewards. Therefore, I don’t think that ampLUNA should be viewed in a similar fashion to that of LUNA or ASTRO pools, but rather closer to what LUNAx is producing right now.

p.s. Controversial, but I do think that the ASTRO emissions should temporarily reduced pending more utility on Terra chain or re-allocated to reduce the current inflation schedule.

1 Like

This is an argument to slash incentives for the LUNA-LUNAx pool and any other underperforming pool imo. An analysis as you’ve done above is necessary for all incentivized pools, to re-evaluate the current incentive emissions and distribution imo.


agree with this

the methodology you suggest of incrementally testing demand for a pool before potentially overcommitting to incentives also seems like a good one for governance to embrace across proposals/pools…

1 Like

Hi @Bitcoin_Sage , @lex_node ,

You do have good points that the governance should focus on not overcommitting on pools that do not provide sufficient trading volumes. Perhaps one could look towards strategic value, potential trading volumes.


Agree that initial LSD pools provide strategic value and could provide significant trading volume in the future. Both should be taken into consideration. Duration of incentivization is a factor the community should take into account for future discussions and proposals imo. As there comes a time where strategic value and potential need to be proven to warrant continued incentivization.

1 Like