I’m Philipp from Eris Protocol, and I wanted to open up a discussion for incentivising ampLUNA - LUNA / ampLUNC - LUNC before putting up a proposal.
I cannot make any proposal for the amount of
alloc_point as I do not know about how many other pairs are getting but would propose a fair share between different staking derivatives.
Right now only LunaX is receiving rewards even though in our opinion the goverment procedure of setting it was not fulfilled for Terra 2. Or should be redecided as the dual incentives with $SD are not implemented anymore as far as I know: ARC-3: LunaX<>Luna Pool Addition to Astroport with Dual Incentives
Eris Protocol right now is a Liquid Staking Provider, but this was never our end goal, but gives us new possibilities. I will not focus on what Liquid Staking is, as most of you know and/or can look it up, but what we are planing around Liquid Staking and how to create volume and value on Astroport.
While we don’t have an official litepaper, here is a couple of topics we are working on right now and will be releasing in the future.
Eris Generation 0: Liquid Staking
Eris Generation 1: Yield-Splitting
We want Eris to be able to split the yield from staking or auto-compounding into different parts. But instead of the “futures” aspect that Prism is working towards, that yield is a token, we want to do it based vaults. In the first iteration it will be possible to extract x % of yield from ampLUN* and donate it to other projects like Angel or LUNC DAO.
Eris Generation 1.5: Yield-Compounding
While we already auto-compound staking rewards, there is a big hole in the Terra ecosystem, as no auto-compounder is available. While auto-compounder will create some sell pressure on astro and dual incentivized tokens, it also generates volume, value and attracts more capital due to higher APYs.
We were on the sidelines because we expected Spectrum to launch in august, but feel like competition is a good thing to build the best apps and getting new users on Terra.
Also our specific goal of yield-splitting will be applied here. So that auto compounding LP tokens can extract yield and donate / fund projects.
Eris Generation 2: Yield-Investing
The next generation will allow investing the yield or any amount of it into any other token and generating continuous trading volume on Astroport.That means you can deposit any yield bearing token into our vault and define how much of the yield should be converted into a different coin.
Eris Generation 2.5: Yield-Investing Portfolio
Now things get really spicy. We want our users to be able to define portfolios with token allocations like 30% USDC 30% USDT 20% ampLUNA 20% ASTRO.
And the yield will be used to invest into the specified portfolio, generating again swap volume for astroport.
Eris Generation X: Slow-Burn Arbitrage
So this is still a wild card. Our smart contracts on Terra Classic were deployed on Testnet just before the crash. But in the future we will provide vaults for slow-burn arbitrage. That means we are swapping LUN* → ampLUN* / STEAK / LunaX and slowly unbond them for 21-24 days. It will also create volume for swapping.
While we had no high focus on this part, due to low liquidity and low volume,
seeing spreads of 4.5 % increases our priority on porting and finalizing the contracts.
We think incentivising Astroport on Terra Classic makes sense. There is still a big volume on the chain, the community is big and it allows for a big inflow of new users into the Terra Ecosystems and also leads to pulling people towards Terra 2. Both chains can flourish when they work together and both will find it’s unique use case. Even adjusting the LUNC-USTC mint algorithm in the future can lead to big opportunities on Terra Classic and with IBC on Terra.
The burn tax will have some implications about the on chain volume, but the TerraRebels devs will be watching very closely and execute appropriate steps.
While many other projects always go with inflated tokenomics and create crazy APY. We will first deliver our product before implementing a token. We are also big fans of the Kujira model of providing apex assets for our users and amp* depositors.
That means a form of protocol fee participation will be based on provided ampLUN* in combination with deposit length. Details still need to be worked out first.
We want to bring direct value (volume+TVL) for astroport and also the Terra Ecosystems. I hope I have given you a good outlook on what we are working on. We do not have any big investors, are completely self funded and received an emergency allocation of ~ 16000 LUNA.
Adoption can’t be forced, but it would help our project alot receiving some incentives for providing liquidity on astroport. As right now with the price of ASTRO, providing LUNA + LunaX is extremely lucrative, not because of LunaX, but because of Astroport.
Before putting up a proposal it would be awesome to hear your opinion on that topic and start a discussion here.
Our proposal would be to decide a total amount of allocation points for liquid staking derivates and share the allocation points between all liquid staking derivates in the same amount (or with a slight advantage for stader) and revisit the topic bi-monthly. And adjust based on adoption / user growth / volume generated, etc.