Hi all, thank you for taking the time to provide feedback.
Let me start by sharing our thinking around how to distribute TDR. Firstly we look at the assets that contribute to the metrics to receive our allocation. Secondly we look at how we can incentivise pools that will reward users to bridge assets into Algorand (and those who already bridged) and deploy them to the DeFi ecosystem. Thirdly we work with our partners to identify pools they want to incentivise and get them to contribute to those pools and we match their contributions where possible/sensible.
In the first regard, goBTC and goETH have contributed approximately 12% to our TVL metric and and over 25% of our fees and user metrics. Liquid staking contributed 37% to our TVL metric, and Opul contributed 47%. USDC contributed significantly on users and fees but not in TVL as we use Circle to balance thus keeping capital requirements low.
We have decided not to incentivize Opul pools as they have stated they are moving away from Algorand to other chains.
Although goETH and goBTC are Algomint assets, we have robust activity for those assets through our bridge. They are very well incentivised on the DEXes already but not so on Options. AlgoRai has decent TVL for these assets and we feel that by supporting them (Algomint is also contributing a small amount to these pools) we can attract more TVL from other chains. The total ALGOs allocated to this is approximately 8.9% of our TDR total which is less than their overall contribution to our metrics.
wBNB is an asset that we worked with Tinyman to bridge into Algorand last quarter and initial numbers are encouraging. So we are matching them on the incentive for this pool, and we have plans to work with Tinyman to bridge other notable assets into Algorand before the start of the next quarter. At their request we are not disclosing those assets now to prevent further alpha leak, but this is not the Tiny token as someone mentioned.
BigBoi is a new project on Algorand that will be bridging their token to other chains in the very near future. They will be incentivising DEX pools on Algorand to attract users from other chains to purchase the token and bridge back into Algorand to capture the yield on the Algorand chain. At their request we agreed to contribute to these pools as well to enhance their attractiveness. This has not happened yet but due to the early TDR disclosure we are leaking the alpha for transparency with the community.
The bulk of our TDR (71%) is going to mALGO pools to encourage more users to use mALGO and provide liquidity for it. Although one person above said they would like to seem some TDR go toward the mALGO pool, most have spoken against it so we have not allocated any TDR to the mALGO pool and instead focused it on use cases for the token. Looking at the TDR allocations to gALGO pools from the DEXes, we felt a need to spend more of our TDR here to make the yields for this token very attractive so that more users will adopt mALGO. We will also be watching how BigBoi’s bridging plan works out (and that of xALGO) and if they are successful we could offer mALGO bridged to other chains so users there can acquire the token and possibly be attracted to bridge back into Algorand to get the yields from Algorai and the DEXes. For the mALGO/USDC suggestion, unfortunately these don’t exist currently but it is a good idea to try and incentivise this to get it started so we will be amending our distribution numbers to get it going.
While there have been several critical comments about our plan, we are grateful for everyone’s effort to review it and help us shape it so we can provide greater value to our community. This plan is not final yet and we appreciate those who provide constructive comments and suggestions about where you think we should be allocating towards and not.
