ARC-43: Approve Generator Proxy Contract for stLUNA-LUNA Pool

Edit 2, February 17th, 2023

The generator proxy contract to enable incentives for the stLUNA pool has been instantiated on Terra mainnet. Early next week there will be an on-chain vote to approve this contract.

To be clear, the Stride DAO will acquire xASTRO and use it to incentivize the stLUNA pool, which will ensure deep liquidity in the pool. The Stride DAO will incentivize this pool for the foreseeable future.

At present, ASTRO incentives from the Astral Assembly are NOT being requested. However, ASTRO incentives will be requested in about four weeks, in accordance with the Astroport Incentive Framework.

View the proposed stLUNA generator proxy contract here.

Executable message:

    "order": "1",
    "msg": {
      "wasm": {
        "execute": {
          "contract_addr": "terra1ksvlfex49desf4c452j6dewdjs6c48nafemetuwjyj6yexd7x3wqvwa7j9",
          "msg": {
            "move_to_proxy": {
              "lp_token": "terra14n22zd24nath0tf8fwn468nz7753rjuks67ppddrcqwq37x2xsxsddqxqc",
              "proxy": "terra133gygg4yuzq28zk754jp5qrccsl6ftvwt94uqyc6sy9maeqtxfpscfmyeh"
          "funds": []

Edit 1, February 14th

Just to keep the Astral Assembly in the loop, there have been some changes to Stride’s plan to incentivize the new LUNA-stLUNA pool. Technically speaking, it’s a lot harder to incentivize an Astroport pool than you might think! So due to technical difficulties, here’s the new plan.

Stride is working to develop a generator proxy contract that will allow the stLUNA pool to be incentivized with xASTRO. The Stride DAO will acquire xASTRO, and use it to incentivize liquidity stLUNA liquidity.

The contract and executable message will be available for inspection shortly, followed by an on-chain vote.

Original post:

Disclaimer: While I am a member of the Astroport DAO, I am also an employee of Stride Labs. In this post, I am speaking on behalf of Stride.


This proposal asks the Astral Assembly to approve a generator proxy contract for the stLUNA-LUNA pool, to enable the pool to be incentivized with STRD. Here is the pool in question.


Stride’s stLUNA recently launched, and an stLUNA pool was made on Astroport. Now, the pool requires sufficient liquidity depth in order to be used as an oracle for the price of stLUNA.

According to the Astral Assembly’s Incentive Framework, a new pool can only be incentivized with ASTRO up to a fee / incentive ratio of 0.1, and a new pool must be live for four weeks before it is eligible for ASTRO incentives.

As stLUNA does not yet have enough usage to generate enough volume to be eligible for enough ASTRO incentives to ensure enough liquidity in the pool - the Stride DAO is willing to provide STRD incentives. Specifically, 7,500 STRD per day can be deployed. Once deployed, these incentives would stay in place for the foreseeable future.

All we need from the Astral Assembly is approval of the generator proxy contract for the stLUNA pool.

About Stride

Stride provides liquid staking for the Cosmos, with ATOM, OSMO, LUNA, JUNO, and STARS currently supported. Stride’s #1 priority is security. Stride protocol is hosted by the decentralized Stride blockchain, and a governance vote is required to upload code. The Stride codebase has been audited by three separate firms. The Stride blockchain has IBC rate limiting, to mitigate damage in the unlikely event of an exploit. And Stride will soon have a large bug bounty, hosted by Immunefi.


The generator proxy contract will be available for inspection shortly, along with the executable code to approve it. Those will be added to this post shortly with an edit.


Thanks to the Stride team for choosing Astroport as your main DEX for stLUNA. I’m fully supportive of this proposal since this proposal doesn’t change any existing parameters of the ASTRO emissions.

1 Like

I’m in full support of this prop. No-brainer for Astroport as it only stands to benefit from more LSD competition and external rewards.

I’ll be against this. I like the stride team. Pulling the liquidity from Community backed lsd’s and giving it to a well funded team like stride that has liquidity is all bad


I will also be voting against this. Stluna charges 10% fee for its service and that revenue generation will put a constant sell pressure on Luna, siphoned into stride chain. Stluna has no current collaborations with any terra project and is therefore a pool I do not foresee either benefiting terra (which benefits astroport), or benefiting Astro token through revenue capture.


This really sounds like favouritism and will be detrimental to self-funded community projects in the same “pool” space. I am not in favour of this, sounds anti-competitive.


In support of the original proposal. The edit is confusing, does it mean that you will not incentivise the pool with STRD?

How the hell are people here against Stride acquiring xASTRO AND using it to incentivize a pool? Do you guys hate money unless it comes from the teams you already support?

Full support for this proposal, shower me with that sweet (x)ASTRO. “Favoritism” was having that 25% cap on emission changes that allowed a lotta loudmouths to extract ASTRO given to pools that barely gave back any fees.


That’s my bad on not reading through the proposal carefully. I have no issue with arc 43. I guess I was just caught off guard by the elimination of support for Terra native lsd pools. Again I don’t agree with the sentiment here that Astro has no obligation to terra when they received a huge emergency grant after the depeg. But that has nothing to do with arc 43.

I read the proposal before the 14th edit. This raises new questions. Will stride be market buying the Astro? Why xastro and not Astro?

I’m not sure if you’re aware but the currently incentivized lsdluna pools acquired no additional alloc points than were initially given to lunax /luna pool.

Post 14th Feb edits on John’s post, the initial proposal suggested that 7,500 STRD tokens will be provided per day, at today’s price, it’ll be $3,400 per day. Will Stride be providing $3,400 worth of xAstro per day, equivalent 30,100 xAstro per day?

Im supportive of xAstro since any rewards that I accrue are in the staked form, thus, not requiring me to collect the rewards and restake them. However, my main question will lie on the quantity of xAstro provided per day.


Hey, everyone! Just a heads up - I’ve added another edit to the original post.

ARC-43 will go on-chain for voting early next week.

1 Like

How is Stride “acquiring xAstro?” If this is via a treasure swap with STRIDE, Astro holders should know that astroport will be also be “acquiring” stride.

If it is OTC, Then Astro holders should know that this will not add buy pressure on ASTRO.

Can you clarify that the xastro used to incentivize this pool will be market bought, and then added to the generator contract?

I don’t see how Stride acquires the xAstro is something that needs to be explained in detail to ASTRO holders. If it is a treasury swap, sure - that should of course be disclosed. Whether they acquire through OTC w/ a willing third party or decide to market buy straight out of the pools is not relevant to this prop imo. I doubt market buying through AstroPort is even a realistic option - what @MaxCallisto asked about is still unclear as far as I know. If the xAstro incentives match the value originally planned to be provided in STRD, slippage/price impact is going to make things difficult.


I echo what @martyvb mentioned. If its OTC or market buy, we shouldn’t need to worry about the way Stride acquires these xASTRO. As for treasury swap, that will have to go through governance, so I doubt that’s even in the plan.

However, market buy is very possible, even at $3400/day, that’s only about $102k over 30 days. In the last 30 days, Astro/USDC pool had over $3.2mil swap volumes. It will have a constant buy pressure, but not very significant imo. Its commendable that the Stride team is willing to distribute xASTRO to its LSD LUNA pool.