Unfortunately this is a chicken & egg situation for all LSD providers. @larry was previously looking to provide alloc_points to STEAK before the collapse of Terra, but due to existence of SD tokens, it was deemed to be a better alternative compared to a tokenless Steak protocol, although it did yield higher returns since staking rewards are passed back to stakers.
The fact that Stader is obtaining all the alloc_points without committing to a single utility brings the question of whether we’re incentivising a protocol just because they’ve launched in Terra Classic in the past or we’re supporting multiple LSD projects in hopes that one of them will bring higher utility to Terra.
Thinking that a LSD protocol creating a worthless token just to “bribe” Astroport will be short-term thinking, but rather we should look at it from the perspective that we’re supporting multiple protocols in hopes that they’re able to build more utility from these deeper pools. Concentrating the Astroport tokens to a pool that generates close to no volume , which equates to no fees to Astroport is unjustifiable.
Having a deep liquidity stableswap pool for LSD is not the end-goal. The end goal for a useful LSD is the utility associated to the token. At the moment, none of the LSD protocols are able to proof, and that includes Stader.
I hope the above will make you consider spreading the emissions to several LSD providers.