GP12 DeFi Rewards (TDR) Proposal - Cometa

Hola Algorand! We are honoured with Targeted DeFi Rewards this time.
We have a master plan for using it most efficiently, which we want to discuss with you. Please tune in!

50% META pools

Cometa token is strongly connected within the whole Algorand DeFi, a variety of tokens, which provides deep liquidity to any new token. So now we’re focusing fully on stable liquidity (but don’t forget a few amazing community projects).

With our upcoming Launchpad and a few other minor features, the token’s stability will bring great value to the whole ecosystem.

  • META/ALGO (Tinyman and Pact already reward this pair)
  • 12% META/USDC Tinyman
  • 8% META/gALGO Tinyman
  • 4% META/mALGO Pact
  • 4% META/wBTC Pact
  • 4% META/wETH Pact
  • 4% META/goBTC Tinyman
  • 4% META/goETH Tinyman
  • 4% META/GOLD$ Tinyman
  • 2% META/COOP Pact
  • 2% META/NIKO Tinyman
  • 2% META staking

15% Boost Smaller Projects Liquidity

Incentivizing already popular tokens makes little sense, so we’ll help smaller projects achieve more stable liquidity, bringing much more value for the same money.

We’ll announce the 7-day period, during which projects might create a 90+ day farm pool in pairs with one of the following tokens: META, ALGO, USDC, gALGO, GOLD$, SILVER$, wBTC, wETH, goBTC, or goETH.

To be eligible, a project should have:

  • Stable TVL < 20k (no recently removed liquidity pls, we’ll see that)
  • A token older > 1 month
  • Active Twitter

We’ll split 15% between the pools, proportional to the provided rewards.

15% Cross-chain/RWA

Solid cross-chain and RWA liquidity make the DeFi more stable and robust. Enough of those $ALGO chart dances, let’s make it really liquid. We believe those deserve more attention than they curretnly have.

We will incentivise all the farming pools with LPs containing one of the following: GOLD$, SILVER$, wBTC, wETH, goBTC, or goETH, with a longevity of at least 90 days. Then, we will split the rewards proportionally to the LPs.

There will be a 7-day period, where projects might create new pools to be eligible.

20% Connect Algorand and Base with DEGEN and Farcaster

Farcaster is a new amazing social platform that has gained the attention of the Base blockchain. We see an easy option to connect Algorand and Base via Farcaster and its amazing mechanisms.

One of those is the ability to integrate any Javascript code into the posts. And this is crazy. We want to use it and literally integrate Algorand DeFi into Farcaster. Example of integrated Ethereum swap app: Warpcast

We’ve already bridged its native token DEGEN ($650m FDV), and we feel the heat. We’ll use the funds:

  • 7% Liquidity pools: DEGEN, DEGEN/ALGO, DEGEN/wETH, DEGEN/META
  • 4% Promo on Algorand
    • pay for users Farcaster subscription (we need more Algo people on Farcaster)
    • drop DEGEN on Base for Farcaster activity about Algorand and Cometa (it is easy to get attention and attract a lot of degens to Algorand)
  • 9% Farcaster promo on Base
    • develop frame app, allowing connect Algo wallet, claim/bridge DEGEN drop/bridge and USE ALGORAND DEX
    • drop DEGEN on Algorand for creating Algo wallet and DeFi activity
    • buy ads in Farcaster

Conclusion

Cometa has its own area of responsibility — helping projects to grow and improve liquidity across the board.
So, we shouldn’t incentivize already popular tokens; it’s a bit wasteful. We’d be better off trying non-trivial ideas that bring more value for the same money.

What do you think about our plans? Please share any thoughts!

5 Likes

I’m loving the cross-chain focus and Farcaster.

But would it be possible to consider distributing some of the incentives from gALGO to mALGO? mALGO has performed above expectations this period despite failing to secure Foundation funding in the last voting round.

How about 8% for gALGO & 4% for mALGO?

2 Likes

Hey! The Farcaster campaign will explode so hard, thanks :>

We’d love to support mALGO! Good suggestion. 3-4% will be allocated.

2 Likes

I’ve noticed that now mALGO is unpegged from ALGO 0.198 vs 0.18 = 10%. Why is that, and how is the Messina team gonna fix it? (I understand that TDR will help, but what else)

2 Likes

@KevinV_UC might be able to help answer that.

mALGO has the rewards of all earlier governance periods baked into it’s ALGO rate - mALGO is an interest bearing token, it isn’t supposed to be pegged to mALGO 1 to 1. The ALGO/mALGO rate is adjusted with every reward distribution.

2 Likes

50% META Pools
The existing incentives for the META/ALGO pool by Tinyman and Pact highlight its importance for further incentivization. I propose reallocating TDR rewards from META/USDC, META/gALGO, and META/mALGO to the following:

  • 13% META/ALGO Tinyman
  • 13% META/ALGO Pact

This reallocation aims to boost liquidity in the META/ALGO pool. Additionally, I suggest allocating all META staking rewards to META/ALGO LP farming.

Love Cometa and the plan you have outlined.

I would like to see an even larger portion go towards DEGEN (maybe 50%?) to try and break into the Farcaster ecosystem, develop the swapping / bridging frame, etc… I think this would be highly impactful. The larger you can make those incentives the more likely we see people create Algorand accounts - and all of those people already being crypto native makes it seem very doable. I love this initiative so much, it may be the best use of TDR I have seen yet. Bravo Cometa team.

3 Likes

Why gAlgo and mAlgo? gAlgo is a propped up token that has already take liquidity from smaller communities in their terrible contest and is become absolete with the move to avax, malformed relies on the left overs of gAlgo as a governance token as there is no use case except for foundation money propping it up.

What do you see I don’t?

Hey! That is actually a good point. We had a talk with Pact team and also got to the conclusion, that META/ALGO should be well incentivised. The final numbers will be in between of the initial ones and what you have proposed.

Thank you for the impact!

Ahhh, thanks for the recognition! We also believe that it might be HUGE.

We have campaigns to get Farcaster users to Algorand, and ALSO push Algorand people to Farcaster. Thus Farcaster could become Algorand hub, and we’ll basically get all its users.

We’ve already tried a small test move with almost NO funding and NO promotion and got 10+ new Algorand users creating and funding Algorand wallets.

We agree that it is the best idea to put more funds into the initiative. We just don’t want to scare people and make them think that we are crazy. So we are humble with the allocation. But if the idea gets more attention, we’ll definitely put more funds in it. So, if you could spread the word and explain at least a little bit, we would be grateful!

Thank you for the valuable suggestion!