GP11 Defi Rewards - xBacked

Governance
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What is xBacked?

xBacked pioneers stablecoin issuance with xUSD on Algorand. Backed by gold, silver, BTC, and more, xBacked leverages Algorand Blockchain for seamless asset management and swift, low-cost transactions.

Program Goals:

Aligning with Algorand’s TDR principles, we focus on user growth, transaction volume, and network adoption. Our mission shifts to prioritise these, boosting xUSD liquidity and reinforcing its Algorand presence.

What Are We Aiming to Achieve?

Our aim is to fortify xUSD’s collateral assets on Algorand and increase xUSD circulating supply.

  • Enhancing Value: Elevate the value proposition.
  • Retaining Liquidity: Ensure liquidity retention and user engagement.
  • Forging Cross-Platform Partnerships: Establish partnerships transcending platforms.
  • Boosting Vault Asset Liquidity: Amplify liquidity of vault assets.

Incentives within xBacked flow directly to vault holders and xUSD related activities. Collaborating with Pact, we introduce co-incentive plans and leverage marketing synergies to nurture xUSD growth. Partnering with Pact, the sole DEX offering stable swaps, is crucial for maintaining the xUSD peg.

We also foster alliances with Algomint and Meld Gold to co-incentivize trading pairs, reinforcing our program’s agenda.

GP10 saw the introduction of incentives for an ALGO / xUSD pool in collaboration with Tinyman, with the success of the pool having the largest TVL / VOL ratio this pool will receive the largest rewards allocation.

For vault holder incentives, we would like feedback from the community on two options.

  1. 20,000 ALGO to boost vault numbers. By incentivising collateral deposits and xUSD minting, we’ll conduct snapshots of vault holder wallet addresses within specified periods and distribute tokens evenly through airdrops.

  2. 20,000 ALGO to boost vault numbers. Distributed as per option 1 but only if circulating xUSD reaches 1,000,000 by the 1st of June. If this number isn’t reached the 20,000 ALGO would be redistributed pro rata to the Pact.fi pools as they can be updated on a weekly basis.

Allocation: TBC
Amount: TBC

What will be incentivised & where?
Please note as rewards are unconfirmed, these numbers are estimates and subject to change.

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Why do you focus on a xUSD-goUSD instead of a xUSD-USDC/USDt pool? xUSD can be wrapped into goUSD anyways via the algomint basket. Why do you focus so much on metals instead of ALGO which seems to be the natural choice?

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Hi,

Regarding vault options. Can you consider allocating those 20.000 ALGO toi vault holders in following way;

  • 5.000 ALGO distributed evenly to all vault holders per vault (5k/vault).
  • 5.000 ALGO distributed based on TVL in vaults.
  • 10.000 ALGO distributed based on loan TVL.

this way it encourages to open vaults, but prevents pretty well vault farming. Also it incentivizes higher collateral ratios, but not just hold large amount of collateral with minimal loans. Last part (10kA) incentivizes people to take loans and that way use xUSD. Of course people will have to have collateral in place so will also increase TVL in vaults.

Regarding LP allocations. I hope to see those all LP pairs in Pact and Tinyman. Maybe 2/3 on Pact pools and 1/3 in Tinyman pools. so;
xUSD/goUSD - Pact 19,05% & Tinyman 9,52%
xUSD/SILVER - Pact 9,53% & Tinyman 4,76%
xUSD/GOLD - Pact 12,70% & Tinyman 6,35%
xUSD/ALGO - Pact 12,70% & Tinyman 6,35%

Regards,
ROAM

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Let me speak with the team and see what they come up with :+1:

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also again your focus should be stability of the peg of xUSD but you dont even have “peg keeper” pools like xUSD-USDC/USDt but instead goUSD which is again just wrapped xUSD to a degree…

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Hey @lobo

We focused on metals as its the largest revenue stream on the xBacked platform, we are certainly happy to support Algo pairings more as they become competitive in revenue generation for the platform. However we really want to remain focused on what is bringing in revenue. It is also a little more efficient in that the rewards being given out against metals cost xBacked less in APY terms than the ALGO pairing.

goUSD focus is primarily driven due to it being a crucial part to deepen liquidity to help maintain the peg. Having said this we will look at moving an allocation to USDC and if it achieves a lower APY cost if thata is successful we will look to increase this migration.

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@ROAM @lobo

Hey guy’s thanks for your feedback, please find our updated Q2 GP11 TDR medium article. We have made some adjustments thanks to your constructive feedback.

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I assume that “marketing” means vault holder incentives. right? but new vault incentive mechanism is :ok_hand:

In general, pool allocation looks good to me. If these are the pools, only adjustment I would make is to reduce xUSD/goUSD from 30k to 25k and place that 5k to xUSD/USDC, so 10k to 15k. But this is just minor detail.

Regards,
ROAM

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Yes mate, it is vault holder incentives :+1:

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