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.
Overview
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.
Motivation
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.
Details
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.