Summary
This proposal aims to offer ASTRO rewards for four pools on the Neutron mainnet deployment of Astroport. These pools are ASTRO-USDC, NTRN-USDC, NTRN-ATOM and USDC-USDT.
The four pools were chosen according to the guidelines in ARC-41.
Abstract
Astroport is now deployed on Neutron mainnet! In order to encourage liquidity provision and bootstrap the Neutron Astroport satellite, we propose to offer ASTRO rewards to four pools:
- ASTRO-USDC
- NTRN-USDC
- NTRN-ATOM
- USDC-USDT
The pools were chosen according to ARC-41 which describes how the Astroport community can offer LP rewards on multiple chains. The initial amount of ASTRO rewards for each pool should last for 8 weeks (according to the Astroport Incentive Framework) from the moment of and assuming this proposal passes. After the initial 8 weeks of rewards, the community should re-evaluate the amount of fees produced by these pools and adjust ASTRO rewards in order to target the 0.1 fee to emissions ratio.
Methodology
In order to estimate the amount of fees generated by each pool, we made the following assumptions and observations:
- Neutron block times are about 2.5-3 seconds
- The average price of ASTRO is $0.09
- The Astroport pools will process similar volume compared to their counterparts on Terra 2 and Injective. This assumption was made because the Astroport deployments on Terra 2 and Injective are the best sources of volume data and thus offers a good starting point to think about ASTRO emissions
- We target a 0.1 fee to emissions ratio as proposed in the Astroport Incentive Framework
With these points in mind, we arrive at the following rewards distribution:
The amount of ASTRO distributed per Neutron block is approximatelly 1.979 ASTRO. If Neutron were to have the same block times as Terra 2, this would translate to about 3.9583 ASTRO per block.
Lastly, in order to have enough ASTRO rewards for the foreseeable future on Neutron, we propose that the Assembly IBCs 10,402,412 ASTRO from the Treasury to the Neutron satellite. At 1.979 ASTRO per block, Assembly would have about 6 months of rewards runaway on Neutron.
Executable Message
NOTE: after observing Neutron block times in prod, we saw that setting an ASTRO amount of 1.984587 per block is better in order to have enough incentives for roughly 6 months.
The executable message looks as follows:
[
{
"wasm": {
"execute": {
"contract_addr": "neutron178d2p84ldlzcl53clc25uy6mx3trazxdy08akhjp3qf5chlmccgq6hv2pl",
"msg": "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",
"funds": [{"amount":"10402412000000", "denom":"ibc/5751B8BCDA688FD0A8EC0B292EEF1CDEAB4B766B63EC632778B196D317C40C3A"}]
}
}
},
{
"wasm": {
"execute": {
"contract_addr": "neutron1jz58yjay8uq8zkfw95ngyv3m2wfs2zjef9vdz75d9pa46fdtxc5sxtafny",
"msg": "ewogICJzZXRfdG9rZW5zX3Blcl9ibG9jayI6IHsKICAgICJhbW91bnQiOiAiMTk4NDU4NyIKICB9Cn0=",
"funds": []
}
}
},
{
"wasm": {
"execute": {
"contract_addr": "neutron1jz58yjay8uq8zkfw95ngyv3m2wfs2zjef9vdz75d9pa46fdtxc5sxtafny",
"msg": "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",
"funds": []
}
}
}
]
The readable version of the proposal looks as follows:
{
"register_vesting_accounts": {
"vesting_accounts": [
{
"address": "neutron1jz58yjay8uq8zkfw95ngyv3m2wfs2zjef9vdz75d9pa46fdtxc5sxtafny",
"schedules": [
{
"start_point": {
"time": 1689217200,
"amount": "0"
},
"end_point": {
"time": 1704942000,
"amount": "10402412000000"
}
}
]
}
]
}
}
{
"set_tokens_per_block": {
"amount": "1984587"
}
}
{
"setup_pools": {
"pools": [
[
"neutron1vw93hy8tm3xekpz9286428gesmmc8dqxmw8cujsh3fcu3rt0hvdqvlyrrl",
"17739"
],
[
"neutron1sx99fxy4lqx0nv3ys86tkdrch82qygxyec5c8dxsk9raz4at5zpq48m66c",
"38986"
],
[
"neutron1kmuv6zmpr2nd3fnqefcffgfmhm74c8vhyerklaphrawyp3398gws74huny",
"1754"
],
[
"neutron1jkcf80nd4pfc2krce3xk9m9y994pllq58avx89sfzqlalej4frus27ms3a",
"41521"
]
]
}
}
Copyright
Copyright and related rights waived via CC0.