AlgoRai’s mALGO Bear is based on the price movement of ALGO so a bear vault is basically selling a Call Option, as when it is in the money the buyer of the option has the right to buy the underlying asset (in this case ALGO) for the strike price.
This is also why there are no direct bull vaults as that is essentially selling a put option which means the buyer of the option has the right to sell the underlying asset, which means they can sell ALGO and thus the vault is typically collateralised in a stable like USDC.
To enable bull position taking with the underlying asset, it has to be a bull spread to limit the loss to the value of the collateral which is something we are working on now and hope to launch shortly!
Your only incentivizing pools that already have liquidity, a portion of the incentives should be for pools with low liquidity to incentivize more users into providing liquidity. A quick look at mALGO pair on tinyman shows that only mALGO/ALGO has sufficient liquidity and that the next 9 pools need more incentives.
There are too few pairs you are selecting making it seem like favoritism, spreading the rewards across a more varied selection will help.
This is an interesting point to consider. Whiles you are right that some assets like goBTC and goETH are not minted by us, the basis of Messina Bridge is that it bridges native tokens unlike wormhole and other bridges that mint a wrapped token. So because native tokens are required on all sides of the bridge for people to receive, someone has to provide the liquidity.
Currently USDC is the most bridged asset in terms of volume, users and fees. And we have native USDC on all sides of the bridge which is minted by Circle, not us. We think USDC being bridged into Algorand is a positive, but how should we incentivise this? DEX pools are already very well rewarded and they don’t need us to add to it. Perhaps giving rewards when people bridge? But transaction fees on Algorand are so cheap that it could be too easy for someone to farm that. Or maybe incentivise people providing liquidity?
There are lots of possibilities to distributing TDR but we try to be as measured and considerate as possible and think of all the edge cases before we go with something. I realise this might seem unlikely given the negative feedback above but we have put some thought into this and there are several business considerations and discussions happening in that background that influence this that we are not always at liberty to disclose till later. Still we appreciate your feedback and try our utmost to shape something that the community can accept and benefit from.
Incentivising pools that have low liquidity is a good suggestion and something we are exploring. One challenge to this is the DEXes are not keen to participate in this as like you say the TVL is too low. Also which pairs should we choose to incentivise as we don’t want to be seen to be choosing favourites here?
As for the second point that there are too few pairs selected making it seem like favouritism, we are open to suggestions on specific pools to incentivise. Currently pools are selected based on our partners (the DEXes themselves) choices and that they must be an asset that we bridge. If there is a specific pair you have in mind that warrants support please point it out so we can get it on the list!
I see Rollbit is a bridged asset, but has basically no Liquidity on Algorand, 500 Million Marketcap, 8 million Trading volume on ETH, less then $500 of Liquidity on Algorand.
Thank you. Would you mind answering my questions on bigboi? I still cannot find any information on the token and have 0 idea why they deserve even 1 algo of incentives. It has almost no liquidity on algo.
I can only recommend my favorites; RIO (2751733) and rUSD (2757561). I would provide additional liquidity for these paired with ALGO, or mALGO, and RIO/rUSD for the rewards.
Small AlgoRai Finance incentives too but this one; “mALGO Bear: 78,718” is weird.
But please, for the sake of ### take that BIGBOI off. if that is rug, it will not look good and also will hurt your credibility very seriously. Do not play with fire.
We have removed BigBoi from the list as per community feedback. Their website is www.bigboi.club, we will leave it to them to disclose further info about themselves.
Unfortunately RollBit has not had great adoption in our Algorand ecosystem so it is not on the list to incentivise. We will look into the other suggested tokens, thank you!