ARC-4: ORNE<>UST Pool Addition to Astroport with Dual Incentives

Proposals ARC (Astroport Request for Comments)
1

Summary

Add a ORNE<>UST pool to Astroport and reward LPs with dual incentives ($ORNE & $ASTRO token emissions). 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

Launched on December 3rd 2021, $ORNE lets you purchase tokenized real trees represented by unique NFTs. Orne redistributes the full profit from the trees’ harvest back to you.

Basically, $ORNE is used as a store of value. For each tree NFT, 50% of the tree’s value is represented with $ORNE and is locked in a smart contract. When a tree reaches maturity and the proceeds from its sale are ready to be claimed, the token owner can burn their tree NFT in exchange for the value of the tree (in USD) converted into $ORNE.

For more details around the NFT mechanics and ORNE’s tokenomics, you can check out our website and this post.

Motivation

To reduce price impact and volatility for $ORNE and ensure that our store of value is not subject to price manipulation, the Orne community can provide 20 million $ORNE as LP rewards, distributed over 3 years as follows: 10 million $ORNE the first year, then 5 million $ORNE on both the second and the third year.

Specification

In order to grow the ORNE-UST pool and protect the Orne protocol’s funds, we propose a dual incentive campaign involving both $ORNE and $ASTRO tokens.

We propose that the Astral Assembly provides rewards in line with $ORNE pool incentives which would be equivalent (given the current $ORNE price) to approximately 1000 ASTRO tokens per day (365,000 ASTRO per year).

The estimated dual rewards APR is shown below for various levels of liquidity.

Liquidity in ORNE-UST pool ORNE Rewards APR Astro APR Total Reward APR
$1,000,000 30% 30% 60%
$2,000,000 15% 15% 30%
$5,000,000 6% 6% 12%
$10,000,000 3% 3% 6%
$20,000,000 1.5% 1.5% 3%

(estimated APR values assume that $ORNE = $0.03)

Copyright

Copyright and related rights waived via CC0.

10 Likes
2

The last update I saw was that Luc, the individual behind the ORNE project, had acquired the funds to start his vision of tokenized forestry in advance. However, the company had not been formed yet, the land had not been picked out, the process of how to convert trees to yield had not been planned out, the token was launched, but Luc had yet to bring in Smart Contract devs to “quickly to complete the basic steps” to lock/vest Luc’s personal token allocation and has not begun to start work on a dApp.
[Medium] Introduction to Orne.io: NFTs for sustainable forestry

If none of the above has changed, I wouldn’t think it would make sense to contribute ASTRO tokens to the ORNE-UST LP. I want to be clear that I have nothing against Luc or his project whatsoever. I just don’t think it would make sense to contribute towards a proclaimed “store of value” when there is nothing yet to store any value.

4 Likes
3

Hello, thanks for your feedback.

  1. The company has been established, it took a while because of bank but it’s officialy finally done (since 25th february) (Link to infogreffe).
  2. Company’s token and my allocation are already locked on a smart contract, vested over 3 and 1 years.
  3. Our dApp is ready, we are waiting for Astroport testing on bombay, staking smart contract is ready to be deployed on mainnet whenever we got the approbation. When test are done, we’ll put online our dapp on testnet.
3 Likes
4

Thanks for the response, and I am glad there has been some progress!

It sounds like things are in place for the company now, but still in process in regards to the other components such as acquiring land, creating yield, etc… My last question is: why now and not later? In other words, will the ORNE-UST LP earning ASTRO rewards help move those last components forward in any way?

Thanks again, I appreciate your time!

3 Likes
5

Congratulations to Luc on the opening of his company! It’s official and it’s a very good thing. We can’t wait to see the new dapp, whether Orne owns forests and the project leads to something great!

3 Likes
6

Would love to see this! $ORNE is very volatile and to get some astro reward to encourage people to LP is a great idea! Team is working really hard and deserve this boost IMO

3 Likes
7

Great project, great team, much needed for this planet. I hope astroport does the right thing with this one, dual incetives now, a greener planet NOW!

4 Likes
8

Hello, as a member of Luna community for now close to 2 years, I think Orne project stands out both by its goal and the incremental and patient approach it has on a niche market at this stage that will be not so nich as time progresses. So definitely supportive of this dual incentive mechanism to avoid slippage and price manipulation. Eric

2 Likes
9

Orne is a smart project combining NFTs and sustainable forest management.
Astroport and even the Terra ecosystem more generally deserve to welcome and encourage such a project.

4 Likes
10

No objections for this one! Orne appears to be a great project with a good environmental objective. Incentivising it can allow for deeper liquidity to minimise slippage, as well as raising awareness for a great project.

4 Likes
11

Orne definitively appears to be a great project with a good environmental objective.
Supporting the project with some Astro instinctive would increase liquidity to reduce slippage and create real added value

5 Likes
12

I believe in these team, they are serious workers. Im agree with the reasons cited above to be able to see the dual incentives on ORNE.

4 Likes
13

One of the Best “natural” nft project of the moment !
Keep going we believe on your team :facepunch:

2 Likes
14

dual rewards is the way, lot of hope in this project, team work hard and have a good synergy !

3 Likes
15

Based on the above proposal, Orne asks for 368,000 ASTRO for our ORNE-UST pool, which makes alloc_points = 4100.
• ORNE-UST: 368,000 ASTRO (0.368% of 100,000,000) , alloc_points = 4,100

1 Like
16

The executable message for this proposal looks like this:

[
   {
      "order":"1",
      "msg":{
         "wasm":{
            "execute":{
               "contract_addr":"terra1zgrx9jjqrfye8swykfgmd6hpde60j0nszzupp9",
               "msg":"eyJzZXQiOiB7ImxwX3Rva2VuIjogInRlcnJhMTZ6eTlnMmV5bThyZ2h4eDk1bnk2MGMzZHlyd3FzZngweXBtdTV5IiwiYWxsb2NfcG9pbnQiOiAiNDEwMCJ9fQ==",
               "funds":[
                  
               ]
            }
         }
      }
   }
]

The value in msg is the base64 encoded version of the following message:

{"set": {"lp_token": "terra16zy9g2eym8rghxx95ny60c3dyrwqsfx0ypmu5y","alloc_point": "4100"}}
17

I don’t know much about ORNE, but does it make sense for astroport to incentivize this pool with 3x as much rewards as the ORNE itself? The proposed reward schedule has 10m ORNE (market value $400k) over the first year, and 365k astro (market value $1.2m).

The pool would have to do $1.2b in volume to break even on that $1.2m ASTRO rewards (0.1% of volume goes back to the assembly). And even if rewards aren’t meant to be break-even, ASTRO rewards are a zero sum game – those 1000 ASTRO per day would be removed from larger more profitable pools like LUNA-UST and bLUNA-LUNA.