The GraveDigger charges a 10% performance fee when performing the auto compound.
70% of this will be directed to the LP provider pool.
30% of this will be directed to the SP DAO
100% revenue share from the SP GraveDigger
I hope this clarifies where the incentives come from.
Seems like a good idea to combine NFT projects with Defi. Combing forces should benefit the whole community.
This alliance is comprised of big brain Terrans that have been working together to provide the framework for the ecosystem to thrive again.
100% fees back to the community! One of my favorite points is that this proposal benefits active Validators on the network, the ones that vote on governance and have a vested interest in seeing the network grow stronger.
I support this proposal and the teams involved. Thank you for your continued efforts.
This comment should be seen as a healthy discussion to the proposal laid out by the Backbones Lab. For full disclosure, I did help to add some points into the proposal. I will lay down some facts for the community to decide whether theyād like to support or reject the proposal as I will not be taking sides for this proposal & Iām an SP/xASTRO holder.
The Good
The Not So Good
Now I certainly will not discount the community support behind this project. I believe that the spirit and motives behind Backbone Labs is beneficial to the Terra community and as Iāve mentioned in the first part of the comment, Iām laying out the facts for the Astroport community to make the best judgement.
Fully support the proposal.
Fly the flag 
Blockquote
Thank you for this break down
In all fairness. 1 million in the auto compounder is basically nothing to begin with, but we can always use multiples of 10 if we want to imagine. 
In the Not so good section section, point 2 you list some figures. Since NO ONE is directing this much of their platform back to the community pool i would like those same figures for Staddar, Eris. and Steak
Since they give way less.
Thank you
You calculated the minimum APR where all circulated bLuna will be in the LP. Itās safe to assume that a decent amount of bLuna will be locked in other smart contracts (as collateral (Capapult), etc.), but the performance fee from those bLuna will still go to the liquidity providers. So the min APR is 0.455%, but the max could be significantly higher.
After LUNA collapse I personally with double suspicious looking into new projects/initiatives/ideas and etc., probably thereās no better teaching technique in this space than losing money, but at the same time not to lose hunger learn what went wrong.
Teams/devs/communities who found the strength to stick in space and particularly in LUNA and do things during such conditions, well thatās the group of people with whom Iām willing to trust and look after each initiative, so letās start with bLUNA-LUNA!
Cheers SP
You canāt kill what is already dead!
This is a wonderful direction to evolve the ecosystem!
Looks like there are quite a few replies in support but I feel there are some important questions that would be great to get answered, a bit more constructive feedback. 
An important component of Liquid Staking Derivatives (LSD) is not only the fees extracted, but also the validators to whom the Luna is staked to. You can view the list of validators that are supported by Eris, Stader, and BackBone on their respective websites. Technically BackBone Labs does not ākeep nothing,ā as the small group of 6 validators are benefiting from the commission from all bLuna staked with them. That said, of the selected 6, their commission is 5% with the max set 20% for each, and thus very reasonable. However, given there are only 6, downtime or changes in just one could affect the returns for all bLuna holders. This leads me to the questions below:
Who is in charge of determining the validators that are on this list?
Do you plan to expand the list beyond just 6 in the future? (6 is a small amount and should be increased)
If so, what measures will be used to determine which ones? (Stader has specified criteria)
Is bLuna staked distribution weighted evenly, randomized, or designed to spread more of the voting power to the lower listed validators?
Orbital Command is currently top 3 in Voting Power, and 3 of the others (Gidorah, CAPAPULT, PFC) are in the top 25.
I understand that boneLuna is a forked version of STEAK LSD, and thus, it does not mean it is exactly the same. As the audit linked above may not necessarily apply to boneLuna, as we know, aspects have been changed in forked version.
Does BackBone Labs plan to get boneLuna audited or at least link to the boneLuna contract for community to review?
I think @MaxCallisto brings up some very good points about the pool type. Both have their own pros/cons, but if one of the selling points is that other protocols will use LSDs for collateral, then wouldnāt those protocols prefer a stableswap pool for liquidations?
I appreciate all efforts to bring DeFi back to Terra, so it is important to ask questions and stay informed. I think the above questions are important things to know before Astroport decides to add incentives, as this can rightfully be seen as a āstamp-of-approvalā of sorts by the Astroport community. Trust but verify. Thank you!
Thanks for descending into the particulars on this proposal and for helping this project get off the ground.
Can you speak to why LunaX-Luna, ampluna-Luna, cluna-Luna are all stable-swap pools while the proposed bLuna-Luna pool is not.
In particular because you listed thatās itās not as a positive while also stating as it is currently constituted itās not ideal for using collateral on lending protocols because of oracle attack risks.
We appreciate you taking the time to engage and write these questions. I will answer all points in order.
The SP Alliance is in charge of the validator list if more are to be added it will be put to a vote. We have a small set because each WL validator member has pitched in a lot of time and resources into this we had no external funding. That said we do have plans to extend the list down the line, but not at present moment.
Our list is based on people and groups who have shown the most dedication to the chain before and after the crash. To be considered here are only 2 stipulations we have set forth.
as far as the distribution. it is evenly spread. We are all doing the same amount of work. Every 21 days a call will be made to the contract and re-distribute the staked $LUNA so all validators are evenly staked.
BoneLUNA ($bLUNA) is a forked version of Steak as is ampLUNA. The only difference is we changed the performance fee. Nothing else has been altered. We did write a backend contract for the fee splitter to handle the 70/30 split which has also audited at SCV Security same as the Steak contracts.
We will create a repo to display the contracts to be looked over for community review, but at this juncture it would just be redundant to audit it again.
As for the different pools we are aware if this and are having internal discussions on the best option as we speak.
JGnft
Thanks for the response! I think there are already some validators that could possibly be included, so I think it would be good to increase that number from 6 in the near future.
I appreciate the willingness to share the repo, even if not much was changed I think it is a good standard to uphold. On the topic of altering, how is it paying the 70% fee back to the pool? Is this already in place? I would think this should be setup before incentives are turned on. As Max mentioned it isnāt a lot of fees at the current moment, however I do think it would at least provide confidence the team knows what they are doing and is prepared (since this part isnāt hinged on ASTRO incentives).
Thanks again!
Full support and full charge ahead! Let the community decide how and what to do with this ecosystem. Add bLuna to support this thriving community.
Hi @consoul , yes, I did calculate 100% of all bLUNA will be locked under LP, and I do agree that this APR will be higher than 0.455%.
For comparison:-
Total LUNA locked in LUNAx: 970,414 LUNA
LUNAx in Astroport, Phoenix & Terraswap: 299,761 + 5,374 + 8,018 = 313,153 LUNA locked
% LUNAx in Pool: 32.2%
Projected dual incentive APR if boneLUNA has the same staking rate directed to Astroport LP only: 1.47%
Total LUNA locked in ampLUNA: 276,053
ampLUNA in Astroport & Terraswap: 186,660 + 38,540 = 225,200 LUNA locked
% ampLUNA in Pool: 81.6%
Projected dual incentive APR if boneLUNA has the same staking rate: 0.67%
The current comparisons are made based on the current utility of LSD on Terra. Stader has lower amounts staked to LPs due to the fact that institutions predominantly want regular staking and not participate beyond that.
xyk or constant product pool is traditionally used for tokens & coins that are independent of each other, for example LUNA & ASTRO. This allows the token price to freely float between one another and the LP will price the asset according to the market demands. This allows the asset to increase its price exponentially during a large swap on a low liquidity pool.
On the flipside, stablecoin & LSD pools like USDC/USDT or stETH/ETH uses Stableswap Invariant pools or what I usually call it stableswap pools. These pools are designed to keep the tokens to as close to 1-1 as possible, although LSD tends to deviate from the native asset over time, hence, not totally ideal but it keeps the peg to 1-1 for a longer period of time. This feature is important for lending protocols. For example, you borrow $600 with $1000 of boneLUNA collateral. If the lending protocol determines the price of boneLUNA from Astroport, a whale could do a large swap on the pool to cause a large drop in boneLUNA price causing the lending protocol to incorrectly determine that the boneLUNA price has dropped considerably. You are then liquidated on the lending protocol because of this. This is not to say that stableswap does not have such an effect, but its much harder since its designed to keep the peg 1-1.
It really boils down to how protocols design their protocol to obtain market price data, but we shouldnāt make it too complicated for dApps to consider whether the Astroport pool is suitable as a pric oracle, hence, stableswap is a better option.
Hope that answers.
Again we did nothing to the original Steak contract except change the performance fee.
To address the 70/30 split. We wrote a fee splitter contract just for this which has also been audited by SCV Security as well. It will be activated when we get the word from you and our pool is live. All of this will go into the repo ser
Love the team of BackBoneLabs, they are working hard behind the scene to bring more value to LUNA. $LUNA will come back way stronger than before.
Thanks. Why isnāt bone Luna currently a stable swap lp?