Astroport Incentive Framework

Proposals Discussion
17

Hi @stefan , thanks for bringing this up. Generally, a max reduction of 25% of the pool’s incentive does not eliminate the pool’s allocation points. We currently have 8 pools on Astroport that are incentivised with ASTRO emissions, which we can all agree are excessive for certain pools.

Screenshot 2023-01-24 at 4.39.48 PM
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30D volume from TFM.com (snapshot at 24th Jan 2023)

We currently have 4 stableswap pools that commands over 30% of the ASTRO emissions (31,255 allocation points over a total 104,989 allocation points). However, these 4 pools only produce 1% of the total fees, making emissions to these pools highly wasteful.

This may be controversial to most, but I believe a max cap of 15% of the total emissions should be allocated to stableswap pools that are determined based on a 60d prorated volume. This is significantly higher than the fees that these pools are producing based on their own justification/marketing, ie 100% fees back to community, fees from other products, highest security.

The remaining 85% will be allocated to the remaining highest 5 pools on Terra, and further expanded to 10 pools once Astroport hits Injective’s mainnet.

Going by a % reduction not only benefit the incumbents like John mentioned in his post but also breeds complacency. However, I propose that a dual incentive to be in place for at least 2 weeks rather than 4 weeks.

In summary, I suggest to amend the Astroport Incentive Framework to:-

Before Astroport launches on Injective mainnet

  1. 85% total ASTRO emissions to be allocated to maximum 5 Astroport xyk pools based on the previous 8 weeks trade volume with the exception of LUNA-ASTRO since LUNA-USDC & ASTRO-USDC are incentivised.
  2. 15% total ASTRO emissions to be allocated to stableswap pools, which includes both stablecoin & liquid staked derivatives like LUNAx.
  3. New pools to be included only after 2 weeks of external incentives.

After Astroport launches on Injective mainnet

  1. 85% total ASTRO emissions to be allocated to maximum 10 Astroport xyk pools based on the previous 8 weeks trade volume with the exception of LUNA-ASTRO since LUNA-USDC & ASTRO-USDC are incentivised.
  2. 15% total ASTRO emissions to be allocated to stableswap pools, which includes both stablecoin & liquid staked derivatives like LUNAx.
  3. New pools to be included only after 2 weeks of external incentives being enabled.
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