GP12 DeFi Rewards (TDR) Proposal - CompX

Hi All!

This will be CompX’s first TDR Proposal and we welcome feedback from the community and any questions we’ll aim to answer as soon as we’re able.

The primary goal for our use of TDR is to incentivise holding and providing of liquidity for xUSD.

We will also be partnering with Messina and in participation with Messina Token Wars to incentivise liquidity from the other ecosystems - more info can be found via the Messina TDR proposal

Total rewards allocated: 131,757 ALGO

Pool/farm/Staking TDR % Platform Reward Amount
xUSD staking 10% CompX 13,175.7 A
xUSD/USDC 25% CompX via stablepool 32,939.25 A
xUSD/GOLD 20% CompX via 26,351.4 A
xUSD/SILVER 20% CompX via 26,351.4 A
xUSD/ALGO 15% Tinyman 19,763.55 A
xUSD/Coop 2.5% Tinyman 3,293.925 A
xUSD/Chips 2.5% Tinyman 3292.925 A
Token Wars 5% CompX/ 6,587.85 A

Here’s a video explaining our proposal!
CompX - TDR GP12 Overview

Appreciate any feedback or suggestions.

EDIT - 20th April 2024 - Updated TDR percentages to increase xUSD/USDC portion.
EDIT - 6th May 2024 - Removed consensus rewards, removed community token incentives coop and chips, added EURS and USDt, modified allocations.
EDIT - 9th May 2024 - Removed EURs and USDt, removed COMPX token specifics, Added Gold, silver and ALGO allocations.
EDIT - 9th May 2024 - Title updated and proposal made official, Added platform column to indicate where the rewards will be deployed to.
EDIT - 10th May 2024 - Added Coop and Chips pool incentives via Tinyman following community vote.
EDIT - 10th May 2024 - Added video overview link
EDIT - 10th May 2024 - moved 5% allocation from xUSD staking to xUSD/USDC
*EDIT - 14th May 2024 - Added Token Wars allocation in partnership with and Messina. Updated Coop and Chips allocations - reduced both to 2.5%. Added reward values.


In addition and some alternative ideas:

xUSD cash back on NFT purchases via Exa Market
Exa support xUSD purchases for NFTs, so would it be interesting to have 1-2% cash back funded by TDR in xUSD for any NFT purchases made within the period (up to a limit of course)

Vault Holder rewards
As was done previously with xBacked, those who hold a valid vault through a certain period are rewarded with a share of a pool of tokens funded by TDR

Interest Free Vaults
Perhaps TDR could be used to fund interest free Vaults for a specific period?


xUSD cashback would put more selling pressure on xUSD. That would not help to bring it to peg. Imo incentivizing buying /staking/holding/farming LP behaviors is the move. If I had the funds, I would hire a Tokenomics consultant/economist for y’all to formulate better mechanics to maintain peg. I DO like the idea of Vault holder rewards, ultimately I think the xUSD staking mechanism will help, I would love if y’all borrowed a page from $STBL (Algofi RIP) and have a dynamic staking APR, depending on if xUSD is above peg or below. Sorry if I got off track! Vault holder rewards is my favorite idea of them all, but if xUSD staking rewards will help bring it to peg, I’m for both!

Yeah dynamic interest is something we want to do but with the current contracts it’s difficult to do easily.

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xUSD is currently severely depegged at $0.88. A stablecoin that is not stable is worthless. If xUSD fails, then it will destroy my confidence in CompX.

I recommend CompX focus 100% of TDR to stabilize xUSD.

  • 100% of TDR for incentivizing xUSD/USDC liquidity via LP token farming rewards on Pact

You don’t need xUSD staking. You need to incentivize xUSD/USDC liquidity.

The project is not ready to launch the COMPX token. It needs to prove itself before launching the token.

  • stabilize xUSD and focus on xUSD integrations
  • integrate xUSD into CompX platform (shutdown xBacked)
  • Integrate Alammex swap into CompX (shutdown Alammex app)
  • generate organic revenue (xUSD, auto-compounding farms, Reti consensus pools, DEX aggregator swap)
  • stabilize the platform
  • etc

I know this is not what you want to hear about the COMPX token, but it is what you need to hear.


Would just like to add this screenshot as reference, currently the Stableswap pools on Pact Fi aren’t really being utilized AT ALL. The majority of “stablecoin” liquidity is in xUSD/goUSD and neither can keep peg, I believe moves should be made to unravel that relationship ASAP until both are back to peg. Incentivizing liquidity in xUSD-USDC, xUSD-USDT, xUSD-EURS Stableswap pools should be encouraged imo.

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Hi Oyster,
I appreciate you commenting even if I disagree with what you’ve said.

We are allocating potential TDR and our own rewards to xUSD/USDC farms/pools - im open to changing the allocation of course.

In terms of the token - it’s pretty integral to our plans for this year and allows us to do things like xUSD staking giving users more reasons to hold on to their xUSD. Plus we can incentivise farms and pools and tokens regardless of TDR - which if the last voting period is anything to go by I’m not taking it for granted.

FYI CompX does generate decent revenue at the minute and can cover probably around 50% of our costs - not ideal but we’re well on our road to sustainability.

None of our proposals are created in a vacuum, all are after discussion and advice internally and we honestly plan to take great care of xUSD now that it’s our charge however we need as many levers as possible to ensure it’s stable.

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Thanks Mocha, appreciate you giving that context. Yeah the stable swap pools and other stable coin liquidity is barely used - this is something we’ll need to get changed with incentives.

Do you think we go all in with USDC as our only xUSD/stablecoin option or should we spread across USDt and EURS?

Interested to hear your thoughts!

FYI - I’ve updated the percentage allocations to move more to xUSD/USDC


I would do is replace the xUSD/COOP with xUSD/ALGO pool and the consensus rewards very good idea and the xUSD staking will definitely help with peg

Diversity is key imo, since USDC has higher utilization in the ecosystem naturally users will flock towards that pool, but USDT and EURS pairs would be good for crosschain liquidity imo

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GP12 now confirmed :+1:

One of the rare times me and Mocha agree.

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Agreed on all the points.

Putting a token out will only make things seem more desperate and further dilute TDR because then you will put money into that token.

I think delay the token release until your ducks are in a row. Also glad to see you guys included in TDR if we are going to have it.


Yeah, token launch is something we need to get right. This TDR is for Q3 so it’s some ways off at the minute.

Plan is to have all products unified on the CompX platform in May.


Made some updates based on comments and changes in the eco:

As consensus rewards won’t come in until Q4 I’ve removed that whole table.
I’ve removed coop and chips incentives and replaced them with EURS and USDt.

Modified the values for incentives.

We’ll be publishing the official proposal by end of this week so if there are additional comments, especially with these changes, please let us know.

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Ok I like the update TDR .The assets selected are high-quality rock solid ones

The only additional thought would be to elevate to the xUSD/USDC pool, this is actually doing work for the protocol by deepening liquidity. Staking xUSD improves the peg for sure, but the only thing it’s incentivising is HOLDING xUSD, which isn’t as useful as providing liquidity. We don’t want holding xUSD to as profitable as supporting it in defi.

Glad to see all the stable pairs in there though!


Thanks - yeah I think it will be a fine balance - which we can tweak using our own rewards via COMPX token to ensure that DeFi is the best option in terms of yield.


Yah having both options is nice , the choice of DeFi and staking your xUSD. I also do agree liquidity is very important but we also like to build a strong community so people will love keeping the liquidity in place even after there are no rewards because the biggest reward will be the fee’s from the pools and helping build up CompX as a power house whose home is here on Algorand