ARC-63: Incentivize Initial Sei Mainnet Pools with ASTRO

Proposals ARC (Astroport Request for Comments)
1

Summary

This proposal aims to offer ASTRO rewards for five pools on the Sei mainnet deployment of Astroport. These pools are ASTRO-USDCet, SEI-USDCet, USDCet-USDTet, SEILOR-USDCet and stATOM-USDCet.

The five pools were chosen according to the guidelines in ARC-41 and according to the on-chain vote outcome for ARC-77.

Abstract

Astroport is now deployed on Sei mainnet! In order to encourage liquidity provision and bootstrap the Sei Astroport satellite, we propose to offer ASTRO rewards to four pools:

  • ASTRO-USDCet
  • SEI-USDCet
  • USDCet-USDTet
  • SEILOR-USDCet
  • stATOM-USDCet

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:

  • Sei block times are 0.25 seconds
  • The average price of ASTRO is $0.03
  • 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:

Screenshot 2023-08-22 232458
Screenshot 2023-08-22 2324581263×283 14.4 KB

The amount of ASTRO distributed per Sei block is approximatelly 0.14419 ASTRO. If Sei were to have the same block times as Terra 2, this would translate to about 3.4606 ASTRO per block.

Lastly, in order to have enough ASTRO rewards for the foreseeable future on Sei, we propose that the Assembly IBCs 10,402,412 ASTRO from the Treasury to the Sei satellite. At ABC ASTRO per block, Assembly would have about 6 months of rewards runaway on Sei.

Executable Message

The executable message for this proposal looks as follows:

[
  {
    "wasm": {
      "execute": {
        "contract_addr": "sei13hwj6afyxgue26f966hd5jkcvvjeruv7f9cdtd5d9mrtyrnn73ysp04nt4",
        "msg": "ewogICJzZXRfdG9rZW5zX3Blcl9ibG9jayI6IHsKICAgICJhbW91bnQiOiAiMTQ0MTkwIgogIH0KfQ==",
        "funds": []
      }
    }
  },
 {
    "wasm": {
      "execute": {
        "contract_addr": "sei13hwj6afyxgue26f966hd5jkcvvjeruv7f9cdtd5d9mrtyrnn73ysp04nt4",
        "msg": "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",
        "funds": []
      }
    }
  }
]

The readable version of the message looks as follows:

{
  "set_tokens_per_block": {
    "amount": "144190"
  }
}

{
  "setup_pools": {
    "pools": [
      ["sei1cxlup9et0gj66l5y6lcnvs7juq5cg05y5vnwzzv374duzlaugh9qzzktfg", "12709"],
      ["sei1yj07xdntlactdx77sz4khgh56gq2cxxvrmdmzeza0gefcxd4nmgsecxxnv", "58863"],
      ["sei1j74xmx2nlq2ddzwvw7zgmvdptusxs0px0hk6qg46fsd8a2lnr39s4dv42l", "1338"],
      ["sei1hvmq2a8zensgqhm0xh4vq6watlr7jdy08fdq788ldn4wqsuued7spdrxzm", "24214"],
      ["sei1hq3cwwk80vug8jnprcuqrplja8hud6k59fhy2pphmv8uh9l29ewqy3tmkt", "2876"]
    ]
  }
}

Copyright

Copyright and related rights waived via CC0.

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