In this round of TDR we want to focus on strengthening liquidity for our tokens - xUSD, CompX and cAlgo. All LP incentives using TDR funds will be delivered via our Pact.fi powered farms. We will support Tinyman farms for xUSD/Algo and CompX/Algo with a share of xUSD interest via our staking pools.
Additionally we will offer 30k Algo for users staking their Algo with CompX in preparation for staking rewards coming into play. This is as with the LP incentives, to strengthen the use of cAlgo.
Finally we have 10k Algo assigned to incentive the Gold/xUSD vault over on Algorai. This great use case of xUSD and Gold is a great one to highlight.
Total incentives: 130,000 ALGO
xUSD/ USDC (StablePool) - CompX Farm 30k Algo
xUSD / COMPX - CompX Farm 5k Algo to farm, 5k Algo to lockdrop holders (to be distributed weekly to all eligible users directly to wallets)
I don’t believe CompX was going to incentivize the simple holding of cAlgo going into Gov period 14. This may be referring to injecting these Algos into the node which would increase the value of cAlgo as if consensus rewards are being accrued. Since we don’t know when consensus rewards will actually start happening, this could drive interest in cAlgo in the broader community while also benefiting LPs and the entire ecosystem. I’d agree that incentivizing liquidity is the best way to do this, but there’s a logic to having your token accrue value before others as well I think. Maybe I’m not understanding though. Hopefully Xxiled can come by and provide clarity.
*Edited because I totally missed the ball on what was being said the first time
cALGO/ALGO is a good focus and gives users both gov and consensus eligibility. I also like how lockdropers are included with the xUSD/COMPX incentives.
Focusing on deep xUSD liquidity with this proposal is smart as well–xUSD has been increasing in LP TVL lately and this should certainly help extend that trend. We need more cALGO LP because unfortunately not everyone mints through the actual site and the LP TVL is low, so I think you were wise to focus on cALGO pairings, especially with the potential for consensus rewards to start during G14. The CompX cALGO farms autocompound of course, so the deeper liquidity should help reduce slippage
Yeah that just means boosting cALGO rewards using TDR funds which should be allocated to improve our DeFi metrics and activity. Giving a boost for just minting LST and not requiring a successive action that contributes to either volume or TVL in the overall DeFi ecosystem is an abuse of funds. Shouldn’t be done through governance emissions. Otherwise Algorand should incentivize properly all the ecosystem delegation mechanisms, which still is not the duty of TDRs @Adri
The xUSD/ALGO pool is pivotal in maintaining the $xUSD peg, leveraging $ALGO’s high liquidity and notable volatility as a pairing asset. The priority should be clear: drive xUSD/ALGO liquidity growth through targeted incentives of 100K ALGO.
It’s not an abuse of funds. It’s a reward to target our DeFi - specifically to incentivise people to stake their algo with us - what they do with the cALGO is up to them. Every lst provider is doing the exact same thing - folks did it last quarter too.
I like the Algorai allocation it is nice to see some incentive for platform that have implement xUSD on there platform. This also give xUSD another use in the Algorand ecosystem.