This proposal seeks to add the ROAR/LUNA pool to the list of pools on Astroport that are eligible to receive ASTRO token emission incentives ahead of the next allocation point review in line with the Astroport Incentive Framework. Following this consultation period we will submit a text proposal on-chain for signalling of support.
Abstract
Lion DAO is a community DAO launched on Enterprise.money which aims to showcase the power of Enterprise DAO as well as the protocols & tools that live on the Terra blockchain (including Astroport!). The ROAR token is the DAO’s governance token which can be staked to vote on proposals that affect the DAO, such as investment decisions, treasury management, and protocol changes.
According to the Astroport Incentive Framework the ROAR/LUNA pool fulfills all the criteria to be eligible for ASTRO incentives. The criteria being:
The pool has been trading on Terra 2 mainnet (Phoenix network) for at least 4 weeks - ROAR/LUNA has been trading on Astroport for 46 days at time of writing.
LPs in the pool should already receive token emissions (using the Astroport dual reward feature), unless the pool is comprised of two major assets (see definition above) or one major asset where the other is ASTRO - ROAR incentives have ben provided to the ROAR/LUNA pool since the 25th April following the successful passing of ARC-55.
Dual rewards should continue for at least 4 weeks from the moment (and in case) the Assembly passes a vote to direct ASTRO emissions to the pool - Dual incentives have been pre-loaded through to 25th August and the DAO has every intention of continuing to provide incentives at the same rate at least through to 25th April 2024.
The target ratio of fees to incentives should be 0.1, in line with those of Osmosis and Sushiswap as shown above - We are not suggesting a fee:incentives ratio, with the Incentives Framework review imminent, we simply wish to be considered for incentives allocation during that upcoming review.
Since the ROAR/LUNA pool launched, according to Astroport’s own calculations, it has generated $585,566.01 of trade volume at the time of writing and subsequently $1,756.67 in fees, equating to a daily average fee of $38.19.
After reviewing ARC-42 a daily average fee of $38.19 would place the ROAR/LUNA pool as the 5th most profitable pool on the Terra Astroport instance after LUNA/axlUSDC, ASTRO/axlUSDC, ASTRO/LUNA (not incentivised) and TPT/LUNA. We estimate that since that ARC-42 snapshot in February, the ROAR/LUNA pool has surpassed the TPT/LUNA pool in fee generation to be the 4th most profitable pool on the Terra instance of Astroport.
Alongside the fee generation element the incentives being provided by Lion DAO are currently valued at ~$1,600 (1Bn ROAR) per month at the time of writing. As previously mentioned this incentive distribution has already been extended through to ~25th August 2023 (Terra block 6515040) and the DAO has made provisions to continue to deliver 1Bn ROAR per month of incentives through to 25th April 2024.
With all of this in mind we hope that the Astroport governance stakers support this proposal. We intend to move this proposal as a text based signalling proposal on 22nd May 2023 (1 week from today).
It’s fascinating to see the impressive trade volume and fee generation achieved by the ROAR/LUNA pool, solidifying its position among the top performers on Astroport whilst also showcasing what projects on cosmos have to offer and how they can all the interconnected.
The Lion DAO’s dedication to providing substantial incentives, valued at approximately $1,600 per month, showcases a commitment to fostering growth and value within our ecosystem. The decision to extend the incentive distribution until April 2024 demonstrates a forward-thinking approach and a focus on long-term sustainability.
Considering the fulfilled criteria outlined in the Astroport Incentive Framework, I believe the ROAR/LUNA pool is a strong candidate for ASTRO incentives. As we approach the upcoming review, it is essential to carefully consider the pool’s potential and the significant benefits it can bring to our community.
I encourage all Astroport governance stakers to thoroughly analyze the proposal and think about the positive impact it can have on the wider ecosystem. Let’s support this proposal and together, further strengthen the thriving environment on Astroport.
Great work guys
Wanted to ask how you got all your data, is it possible to open source a script that determines average trade volume, average daily fees produced by your pool over the last x days?
Good job addressing the delivery requirements of the new Astro Incentives Framework. Clearly this LP is bringing in revenue for Astroport- deeper liquidity could foster more, larger, speculative buyers and further increase revenue generation.
We pulled the data from the Astroport UI which shows pool trade volumes & did the calculations from there (0.3% trade fee, known duration of pool etc.)
Hi @LionDAO , I appreciate that you’ve delivered on the requirements of the AIF and the volume on ROAR/LUNA has generated substantial volume on Astroport. While I’m supportive of incentivising a memecoin pool that generates volume, what will be some possible use cases for a deeper ROAR/LUNA pool on Astroport entail? A shallow pool provides good sustainable APR for LP providers, rather than dependent on ASTRO emissions.
I’m split on this proposal to be honest. Love the meme and community of the LionDAO community. For disclaimer, I’m also a ROAR staker.
I think you do somewhat of a disservice to Lion DAO to call our token a memecoin - the DAO treasury already has in excess of $100K of assets. Specifically to your question about use cases for the Astroport LP token - Cavern protocol recently tweeted about utilizing Astroport LP tokens as a form of collateral on their lending platform - specifically ROAR/LUNA LP as one of their preferred tokens. In order to achieve this, deeper liquidity is probably required.
I strongly prefer to focus ASTRO incentives on short-tail assets. To build deep liquidity for the most important assets in Cosmos. ROAR (for now) is a long-tail asset. As such I don’t support adding ASTRO incentives to the ROAR-LUNA pool. However since the ROAR-LUNA pool fullfills the criteria of the incentives framework, I believe incentives should be added. Regardless of the outcome of the signalling proposal.
I’d prefer the incentives framework to be adjusted to include a minimum threshold for pools to be eligible to receive ASTRO rewards. Either a min. liquidity, volume or fee threshold should suffice. This way incentives can be directed most efficiently.
As mentioned this pool qualifies for incentives according to the framework, so in my opinion should get a share of emissions.
However the governance and technical overhead of incentivising very low volume pools is not efficient nor valuable for Astroport, so I would suggest that the framework should be extended to also specify a minimum volume threshold for pools.
This is all my opinion. Delphi Labs does not vote in governance and all the builders vote however they see fit.
Thanks Luke & @Bitcoin_Sage for your inputs. I agree - having to put this proposal on chain is silly. You either meet the criteria, or you don’t - but this step was necessary according to the Framework in it’s current state. It would make more sense if we were in the early stages of the 8 week incentive framework cycle where we were pitching for allocation points, but given we were so close to the 8 week review point, that seemed unnecessary. We’re edge case testing as many things as we can, so glad we found some holes here for you to fill. Please don’t change the rule to exclude us at this very next incentives review, at least let us have our 8 weeks in the sun! Thanks!
Aravos would very much liked an update on this matter. We are well past the 8 week review date as mandated by the framework.
It is noted that there are proposals for Neutron and Sei incentives while also reviewing incentives in relation to Terra (two proposals in fact, one from Astro it self and one from the community).
Aravos is certain the Astral Assembly will not make a mockery of a passed governance proposal and will provide incentives to Roar/Luna pool. Aravos is also certain that in their enduring wisdom the Astral Assembly will make available significant incentives given the volume and activity Roar/Luna generates as well as the potential it brings for generating further interest.
Aravos looks forward to hearing back from the relevant parties Re an update as to when a proposal will be put forward to incentivise one of the top pools on Astroport.
Thanks!