GP12 DeFi Rewards (TDR) Proposal - AlgoRai

We’re grateful for another opportunity to share this DeFi Rewards draft with the community.
The brainstorm thread was very quiet, but in general the feedback around the previous period meant we’re looking to allocate a portion of the rewards differently, and focus on acquiring new accounts on the protocol, and rewarding user generated content to help educate and inform about AlgoRai products and strategies.

As usual, we start with making the vaults more attractive by boosting the yield with a total of 80%% divided in equal portions of 16,000 ALGO across the following vaults.
ALGO Bear, ALGO Bull, mALGO Bear, goBTC Bull, goBTC Bear, goETH Bull, goETH Bear, $GOLD Bear, $GOLD Bull.

Then we focus on new methods aimed at raising awareness about AlgoRai through User Generated Content, and rewarding users for supporting the educational and informational journey.

20% - User Generated Content - A reward pool dedicated to recognise user efforts in producing AlgoRai informational and educational content.

By allocating 20% for user acquisition and educational efforts, the goal is to make AlgoRai more appealing and accessible to new users, but also continue to offer competitive APYs.

We’re looking forward to further refining and detailing this proposal with the support of the community!

Edit: We removed the welcome bonus as we agree with the community feedback that these models are prone to abuse and gaming of the reward mechanics. Instead we increased the allocation on the product, and the allocation for User Generated Content incentives.


Hi :wave: is there any way would have a vault with xUSD Algorand’s best sable coin . The sable coin by the community

How will you prevent new account bonus from being abused?


It was also discussed in the Messina thread that new account bonuses are prone to abuse. Therefore, if bonuses are to be given, wouldn’t it be better to issue them based on usage rather than per account?

In particular, we want to attract users from outside Algorand and activate the chain. It would be strong if we could create a pathway for them to bring $USDC and $PEPE via the Messina bridge and use AlgoRai.

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We have removed the welcome bonus and referral bonus models from the proposal as we agree these are prone to abuse and are likely targeted by farmers. Instead we increased the allocation for the vaults, and added an extra 10% to the User Generated Content pool.

With AlgoRai, we realise education is a focal point to adoption of our products - and through the support of User Generated Content and incentivising our users to help educate the public about the type of products we offer, we intend to bridge that gap.

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