# ARC-62: Incentivize Initial Neutron Mainnet Pools with $ASTRO

**URL:** https://forum.astroport.fi/t/arc-62-incentivize-initial-neutron-mainnet-pools-with-astro/1115
**Category:** ARC (Astroport Request for Comments)
**Created:** [May 23, 2023, 9:30pm UTC](https://forum.astroport.fi/t/arc-62-incentivize-initial-neutron-mainnet-pools-with-astro/1115 "2023-05-23T21:30:01Z")
**Posts on this page:** 6
**Page:** 1

<div class="post-metadata">

### Author: ![stefan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.astroport.fi/stefan/32/5_2.png) [@stefan](https://forum.astroport.fi/u/stefan)
#### Post date: [May 23, 2023, 9:30pm UTC](https://forum.astroport.fi/t/arc-62-incentivize-initial-neutron-mainnet-pools-with-astro/1115/1 "2023-05-23T21:30:01Z")

</div>

### 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](https://forum.astroport.fi/t/arc-41-handle-astro-rewards-on-multiple-chains/951).

### 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](https://forum.astroport.fi/t/arc-41-handle-astro-rewards-on-multiple-chains/951) 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](https://forum.astroport.fi/t/astroport-incentive-framework/890)) 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:

 ![neutron-incentives](https://us1.discourse-cdn.com/flex019/uploads/astroport/original/1X/da0e4f1a8579a7a9d29cc2c20a787c9a91ca21e5.png)

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:

```auto
[
  {
    "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:

```auto
{
  "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.

---

<div class="post-metadata">

### Author: ![John\_Galt](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.astroport.fi/john_galt/32/301_2.png) [@John\_Galt](https://forum.astroport.fi/u/John_Galt)
#### Post date: [May 24, 2023, 1:13am UTC](https://forum.astroport.fi/t/arc-62-incentivize-initial-neutron-mainnet-pools-with-astro/1115/2 "2023-05-24T01:13:07Z")

</div>

I don’t think we should assign incentives to Astroport Neutron pools until we find out what the “main Astroport pools” phrase from ARC-57 means. Neutron will apparently be matching ASTRO incentives for the “main Astroport pools,” but we [don’t yet know what those are](https://forum.astroport.fi/t/arc-57-astroport-neutron/1063/9). And once we find out what those pools are, maybe it will change the way we deploy incentives. For instance, I think incentives should be focused on the “main Astroport pools,” since incentives to those pools will effectively be doubled, since Neutron will be matching incentives.

Separately, I don’t understand why we’d want to incentivize ATOM-USDC liquidity. Astroport Neutron will have very deep ATOM-NTRN and USDC-NTRN liquidity. So anyone wanting to trade between ATOM and USDC will use those two pools. A direct ATOM-USDC pool is redundant, especially since it will be much smaller than the other two.

---

<div class="post-metadata">

### Author: ![stefan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.astroport.fi/stefan/32/5_2.png) [@stefan](https://forum.astroport.fi/u/stefan)
#### Post date: [June 2, 2023, 8:07pm UTC](https://forum.astroport.fi/t/arc-62-incentivize-initial-neutron-mainnet-pools-with-astro/1115/3 "2023-06-02T20:07:53Z")

</div>

Hey John, we took your feedback into account and removed incentives for ATOM-USDC.

Separately, I think the cost of incentivizing Neutron and making sure the launch is successful is tiny compared to the potential of Astroport being the main AMM on that chain. Even if Neutron chooses slightly different pools to incentivize on Astroport, it won’t be that long until Assembly can vote again on changing ASTRO emissions.

Overall I believe the risk/cost of having ASTRO emissions as soon as possible is worth it.

---

<div class="post-metadata">

### Author: ![Celote](https://avatars.discourse-cdn.com/v4/letter/c/858c86/32.png) [@Celote](https://forum.astroport.fi/u/Celote)
#### Post date: [June 8, 2023, 11:10am UTC](https://forum.astroport.fi/t/arc-62-incentivize-initial-neutron-mainnet-pools-with-astro/1115/4 "2023-06-08T11:10:20Z")

</div>

Hello!  
I am new here and a Neutron liquidity provider and would like to know why no incentives are planned for NTRN/ATOM, in my opinion this is one of the most important pools besides NTRN/USDC. Great ATOM liquidity is important for the Atom Economic Zone.

---

<div class="post-metadata">

### Author: ![Celote](https://avatars.discourse-cdn.com/v4/letter/c/858c86/32.png) [@Celote](https://forum.astroport.fi/u/Celote)
#### Post date: [June 20, 2023, 11:46am UTC](https://forum.astroport.fi/t/arc-62-incentivize-initial-neutron-mainnet-pools-with-astro/1115/5 "2023-06-20T11:46:39Z")

</div>

Hey, it’s me again

Mars uploaded the proposal for the neutron outpost parameters today ([[MRC-36] Initial List of Assets - Neutron - MRC (Mars Request for Comment) - Mars Protocol](https://forum.marsprotocol.io/t/mrc-36-initial-list-of-assets-neutron/1054)) and they will use the NTRN/ATOM pool (TWAP) for the oracle (NTRN/USD = NTRN/ATOM \* ATOM/USD) which shows that it would be important to keep the liquidity in this pool, please reconsider the initial pool incentives and include NTRN/ATOM.

---

<div class="post-metadata">

### Author: ![stefan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.astroport.fi/stefan/32/5_2.png) [@stefan](https://forum.astroport.fi/u/stefan)
#### Post date: [June 29, 2023, 12:36am UTC](https://forum.astroport.fi/t/arc-62-incentivize-initial-neutron-mainnet-pools-with-astro/1115/6 "2023-06-29T00:36:05Z")

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Thank you @Celote for the feedback! I edited the proposal and added NTRN-ATOM as well
