Hello everyone, please find below the Folks Finance TDR allocation for GOV14 period.
Feel free to share your feedback.
Note: Some pools will have a higher allocation because they will be co-incentivised by our partners. Wormhole assets are boosted by Wormhole rewards.
Folks Finance is also collecting community interest in distributing Folks Finance TDR rewards as xALGO. This will help users become more familiar with LST solutions (can be applied to any protocols)
Hi Filippo, Iāll leave here a feedback regarding the measure, as Iāve wrote in the other posts for the TDR proposals I find the usage of these funds for pure LST incentives not a correct way to leverage Algorandās emission. These wouldnāt contribute towards either TVL or Volume, but would just make it an unfair advantage taken by DeFi platforms, sitting in the governance council, offering delegation mechanism. Iād rather have these funds actively incentivizing more pools or more usage which can be counted and seen as active DeFi activity.
Hi Jacopo thanks for the feedback, it is the same amount approved by the community in the last periods. This āsmall amountā is necessary to boostrap the LST until staking rewards are live
Hi, thanks for the feedback. Below the table I linked an example of Zealy campaign. All the marketing activities are aimed at increasing TVL and attracting users.
Hereās the report from GP12, the GP13 will be out at the end of the quarter:
Commit at least 100 ALGO to Liquid Governance. : 15 quests
-Commit at least 500 ALGO to Liquid Governance. : 11 quests
-Commit at least 1,000 ALGO to Liquid Governance : 14 quests
-Commit more than 2,000 ALGO to Liquid Governance : 72 quests
You can use a āsmallā portion if those campaign brings TVL and users. I linked an example of a campaign from G13 and the results from G12. This amount has already been approved multiple times with the exception of the consensus kick off campaign. If we see that people are against these 25k Algo, weāll re-allocate them
The zealy campaign is really appreciated within the Algo community and it has been proven to bring results. Tasks will be revised to improve campaign efficiency more and more, thanks to community feedback
TDR is a collective tax and a redistribution of wealth. There is no good reason that the chain as a whole should be paying to incentivize liquidity of coins outside of key trading pairs. Stables and key wrapped assets should be the only focus. Incentives for memecoins should not. And, while itās bad enough when we have platforms tossing money out to a bunch of coins, itās even worse when only one such coin is hand selected.
I am also deeply concerned about being able to use their TDR allocations to favor their own LSTs. This is a centralization concern and it is giving dApps the power to drive out competition using rewards that we are all footing the bill for.
TDR has been and continues to be abused and it should be ended. And Iām very disappointed that we have now regressed from a system of voting on these measures to a system where platforms are once again able to pick and choose allocations without even the legitimacy of a vote.
We are now going on two years of a program that was supposed to be both temporary and limited. Yet, it appears to be neither. We keep shoveling money out the door without any real game plan, reevaluation, or reflection. The continuation of this program, particularly in this fashion has me to the point that I am essentially abandoning hope that discussion in these forums can effect positive change or that rank and file voices really matter all that much.
Hi, and thanks for your feedback as always.
I list here few points on why I disagree with your comment:
You said
Why are you implying that xALGO/USDC is not a key trading pair? It will be one of the most important in the ecosystem because of the upcoming staking rewards. Itās a big change for the ecosystem and why we shouldnāt push for it? We intentionally allocated a large part of the rewards to xALGO/USDC because it will generate volume for DEXs, will benefit the lending market and there will be a lot activity to attract users.
Then you said
This allocation is totally in favour of the main stable asset i.e USDC. To which stables were you referring to? Because there is no stable outside USDC you can incentivize. In addition, the more on-chain usage you create for USDC the better will be for the ecosystem for future integrations.
As I stated above all the wrapped assets are incentivized by Wormhole, please check Wormhole TDR 14 plan + other projects are incentivizing them.
We had the same thought in the past, but things can change. I donāt know about youāre activity on FF but the community is always involved and we always ask for feedback. In the last few years, the memecoin market has grown a lot because it is the easiest way to aggregate the community and attract users, in some cases a single memecoin can really drive the chain usage. We also asked investors their opinion on supporting memecoins (for other reasons) and 80% was in favour, 10% abstained, 10% against. Speaking specifically about Monko we have seen the community being very involved, this is also reflected in its results. From here the reason to allocate a very small % (0.79%).
Hey! Sorry I got confused with the wording and also didnāt see that it was outlined underneath. I was thinking Marketing was different than the Zealy stuff.
Zealy is cool! No issue with that, and itās been a success previous quarters. Thanks for making the wording clearer as well
I think you are missing my point. I the portion you quote Iām talking about the dangers of letting platforms incentive their LSTs using funds from the community at large. I do not feel comfortable letting the platforms do this. Their interests are not aligned with the ecosystem as a whole. Monopolization of the LST market would be good for whatever platform can achieve it, but it would be terrible for the chain as a whole.
Also, while the bulk of the rewards do go towards USDC pairings, there is still a sizable amount going to xALGO/ALGO. Weāve debated a similar issue in the past in the context of gALGO/ALGO. I wonāt rehash them in their entirety here. But my fear is that these incentives are less to do with addressing a need and more about driving people to use a specific product (ie the LST of choice). Pairings like this are relatively risk free and we donāt need to incentivize them beyond the natural trade APR that would accrue.
At that time the argument from FF was this wrapped/native pairing was important to incentivize because gALGO is only redeemable in certain windows. That argument does not apply to xALGO, as it is instantly redeemable.
Regarding the xALGO/MONKO allocation 0.79%, this is something that can be discussed, but one negative feedback, while always appreciated, canāt change the sentiment, especially since we saw a lot of excitement on the other side and the Algo community strongly requested it. We always listen to the community, so if the sentiment changes and we get critical points about why it shouldnāt be incentivised, we can consider changing the plan.
Regarding the 7.93% for xALGO/ALGO, Pact is going to integrate the stableswap lending pool, which means that this liquidity can potentially be taken by the āAlgorand ecosystemā aggregators in their routes, thanks to the efficiency of the pool. Another advantage is that users will still have access to liquidity if xALGO minting is being paused for any reason.
If you read the first part, you generalise, but I donāt want Folks to be associated with that because itās not true and itās been proven many, many times. All we want is for the ecosystem to succeed.
The LST market is a $60 billion (todayās data, according to DeFi llama) market and really drives on-chain activity. The focus now is on Consensus and USDC, and this allocation is in favour of that. It would be strange and unwise not to go in this direction
āFolks Finance is also collecting community interest in distributing Folks Finance TDR rewards as xALGO. This will help users become more familiar with LST solutions (can be applied to any protocols)ā
Iād give this idea a resounding ānoā. To do this youād be putting the TDR rewards into your node right? Giving your node immediately 1 million or so more ALGO.
Can I also ask - will Folks be taking their 10% fee from the TDR rewards going out for consensus staking?
Hi, thereās no concept of your node, as the stakes are evenly divided between the node runners. Anyway, this is not the purpose of the proposal, it is purely educational. I also linked an example. All others projects can follow it. 2) Goes in the community treasury and has been approved for many periods now
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