Here you can find the 2024 Q2 TDR Plan for Pact, we look forward to your feedback.
5 Likes
goASSET-wASSET pools see no volume and people can swap between them using algomints basket so do these pools get a significant portion of your funds? Mainly one large holder is providing liquidity to these pools and farming the rewards afaik, is that you or your VC and you enable them earning easy rewards?
Why do you focus so much on goUSD instead of USDC? What do you think is easier to market to people not already on algorand: goUSD which is backed by xUSD an overcollateralized native stablecoin that has no effective peg mechanism besides liquidations or USDC/USDt which are well known stablecoins?
Why is there no incentive for a USDC-USDt stableswap? Seems like a very important pool and you instead focus again on goUSD pools whcih makes 0 sense to me.
Why do you incentivize goUSD-METAL and xUSD-METAL pools when you can use xUSD to mint goUSD and both being native assets on algorand? Don’r you think people from the outside might be more interested in METAL-USDC/USDt pools instead?
Why don’t you focus more on EUR if your focus are stables?
I like that you include more community tokens by why do you choose to incentivize goUSD pairs instead of ALGO pairs which would be a natural choice for native tokens on algorand?
Why so much more focus on goETH/goBTC instead of their wormhole versions? goASSETs come mainly from a centralized bridge and do you think its easy to market those to people outside from algorand or even inside here? Yes they also act as baskets but people are either fine with a centralized bridge or they are not imo and we should focus on wormhole assets more than anything else imo. I personally dont care that algomint has been on algorand for so long, we need to get people into the ecosystem and people know and use wormhole.
Also like that you have no additional rewards for the ALGO-gALGO lending pool + less rewards for goMINT and X-NFT.
4 Likes
- Refinement of Token Rewards: Reduction or elimination of rewards for select tokens based on community feedback and strategic considerations.
- Liquidity Optimisation: Streamlining liquidity by reallocating resources from smaller pool rewards towards more significant pairs, enhancing overall liquidity depth.
- Enhanced Rewards for Key Pairings: Deeper incentives for crucial pairs to bolster liquidity and trading activity, aligning with Algorand Foundation’s emphasis on on-chain transactions. This includes a change to incentivise goBTC & goETH paired with stable assets in place of ALGO.
Proposed changes:
- Concentrate TDR on lending pools because they support both lending markets and DEX
- Limit TDR to the following lending pool assets: ALGO, USDC, EURs, WBTC, WETH, GOLD$, SILVER$
- ALGO/USDC is the fundamental base for DeFi on Algorand. Boosting its liquidity is top priority. I propose directing users to the fALGO/fUSDC lending pool because it supports both the lending markets and DEX.
| fALGO/fUSDC | 40 |
| fALGO/fWETH | 15 |
| fALGO/fWBTC | 15 |
| fALGO/fGOLD$ | 10 |
| fALGO/fSILVER$ | 10 |
| fUSDC/fEURs | 10 |
1 Like
Hi,
Over all looks good and I like that you widely support different pairs. it makes ecosystem more vivid.
I have to disagree with others. I have seen many comments that Algorand has only couple relatively deep pools and if funds are allocated even more to support only those couple pools, it will kill the ecosystem, because what is the point if you only have couple pairs basically, so good to have wide range of pools.
What comes to supporting goBTC, goETH, goUSD & xUSD tokens, I think it is great to support Algorand native assets rather than helping couple major players. Not saying we don’t need to support those pools too. Good to see that you have heavy weight on ALGO/USDC & fALGO/fUSDC & fUSDC/fUSDT.
Also good to see lending pools supported pretty well.
thing that bothers me is that you have equal weight on COOP, PEPS, BARB, CHIP /goUSD. It makes no sense to give each equal weight, because TVL differs a lot between those tokens. CHIP 1,3M, COOP 290k, BARB 38k & PEPS 23k. So maybe you should adjust those to reflect TVL in some sense. Like CHIP 1,34, COOP 0,67, BARB 0,34 & PEPS 0,33.
I think goBTC/wBTC & goETH/wETH pools are not that important, so I would take 0,67 from each and allocate those into xUSD/ALGO. So now allocation goBTC/wBTC 2,00 & goETH/wETH 2,00 & xUSD/ALGO 1,34
Best regards,
ROAM
1 Like
Glad to see reduction on same asset pairings like goBTC/wBTC and goETH/wETH
I’d love to know the justification for allocations toward goUSD and xUSD over and above USDC and USDT
What is the plan or reason to?
USDC + USDT is how capital moves cross chains whether we like it or not and it feels like we’re hellbent on being an outlier.
The proposal pushes people into a worse cross chain experience by favouring goUSD so much… it even pushes Algorand natives into a worse experience!
Two scenarios:
I can send native USDC or USDT direct from a CEX (and hopefully via CCTP for USDC in the near future) and add to LP right away.
OR I can send USDC/USDT from CEX… then research what goUSD is, navigate to Algomint, create a basket… take a 0.2% hit… then add to LP… and have to do all the same in reverse to send back to a CEX.
goUSD is basically wrapped USDC/USDT - why force the eco in making that extra step? It feels like a poor way to increase adoption of goUSD at the expense of UX to everyone using Algorand
Added a Q1 v Q2 allocations as I think it’s helpful to see how they are evolving between periods
EDIT - Some extra numbers
USD Stablecoin market caps on Algoard:
USDC - $48.28mm - 19% reward allocation
USDT - $22mm - 6.66% reward allocation
goUSD - $1.35mm - 38% reward allocation
xUSD - $1mm - 8% reward allocation
Thanks
5 Likes
Hey @ROAM @lobo etc really appreciate the feedback. There is quite a bit here to unpack. We will try to address all the questions and concerns and get back to you asap. In the meantime if you have any other thoughts feel free to get them down.
2 Likes
Hello,
Vote Coin token is one of the significant tokens in algorand ecosystem.
- Project incentivize the low AMM pools at pact with 50% APY each hour directly to the users accounts. This is how fair distribution of the token is done - with exact return, inclusive to everybody and without the time limit.
- With the high TVL in the low fee pools project helps algorand DeFi ecosystem to grow. It creates incentives for new AMM aggregators to pop up, it creates incentives for arbitragers to fight on algorand and provide the best price indicies available, and users gets better swap quotes when swapping between ALGO, USD and BTC.
- Pact fi receives higher targeted defi rewards because the Vote Coin liquidity providers at the Pact.Fi.
- Trading volume at pact is higher because of all dex optimizer swaps and all arbitrages being done through the vote coin token.
On Behalf of the Vote Coin DAO, please enlist the project pools to receive the rewards in fair manner.
List of the current pools:
2 Likes
I would like to know how allocation is decided, as there seems to be no metrics or parameters in deciding the allocation amount or what projects should aim for to receive support, similar to how Tinyman handles being fair. I have asked for PACT for this info for over two governance periods now. $finite has over $50k of TVL on pact and now is being excluded! while at the same time pact is supporting tokens like barb or peps, with half the liquidity TVL on pact that finite has. without clear metrics and parameters present to decide allocation of the pact Defi rewards, it provides no clear reason over the current allocation?
7 Likes
I like Pact and they are one of the top liquidity defi on Algorand. Keep supporting them pls
2 Likes
As the focus of this TDR is to bring cross chain liquidity, we have to think from the liquidity provider’s perspective. Providing liquidity to an wrapped asset/wrapped asset pool will be a big step for new members.
As many of the community members have pointed out, we have to facilitate cross chain migration in multiple steps to facilitate a smooth migration.
A two step process is suggested:
- Incentivize Wrapped assets/Stable coin pool for attracting liquidity from other chains. Monitor the inflow (liquidity providers will feel more comfortable)
- Once the inflow reaches a certain level (3 to 6 months) increase rewards for wrapped assets/wrapped assets pool. (By this time migrated liquidity providers might already have learned about the ecosystem and tokens).
This applies to RWA pools (gold and silver).
All the very best.
4 Likes
Also to add on to this I think KPI’s should be shared to show which LPs were successful from period to period at attracting new liquidity.
I pointed out that goBTC and goETH reduced significantly from Q4 '23 to Q1 '24 during GP10 feedback.
There was a reduction of 24.7 BTC and 1276 ETH (approx 50%!) on chain between GP9 and GP10
I suggested last time that this showed BTC and ETH (despite being the largest mkt cap cryptocurrencies) are the LEAST likely to be bridged to small alt L1s like Algorand, and it was a poor strategy to target them so heavily. For ETH we all know L2s gobble that market. And BTC because people that hold BTC don’t want to take on bridge risk… at all.
This period proposal you’ve decided to ignore that data, and INCREASE the incentive for both goBTC and goETH even further getting 3.33% more of the allocation each than last period. While at the same time leaving all the Alts (SOL, AVAX, LINK) untouched.
Would love to know why you’re ignoring past performance, and how you think this period will achieve different results?
3 Likes
Its so obvious that with the new Pact.Fi management from goMint appointed by shareholder from Meld gold, they are trying to milk the Targeted DeFi program to receive maximum algos for their tokens.
There is no point for discussion to lower their expected rewards as they decide the allocation.
The fact that they banned distribution to Coop, Vote and Finite and they support the Peps token which is even under the TVL of the ASA.Gold the competitor of Meld Gold is very strange.
AF should step in as they are the owner of the money and should supervise if the algos are distributed fairly.
2 Likes
?? But they have COOP/goUSD, PEPS/goUSD, CHIP/goUSD & BARB/goUSD pools in there?
1 Like
Hey folks,
We are currently adjusting our proposal. We should have another plan to present in the next 24 hrs. Please stay patient we are working to incorporate your feedback 
7 Likes
I love pact it is hands down the best liquidity platform.
1 Like
Looking forward to the rework
2 Likes
Hey guys n gals,
Please find our Adjusted TDR for Q2 2024. Thanks for all the feedback 
6 Likes
Vote Coin token is one of the significant tokens in algorand ecosystem.
- Project incentivize the low AMM pools at pact with 50% APY each hour directly to the users accounts. This is how fair distribution of the token is done - with exact return, inclusive to everybody and without the time limit.
- With the high TVL in the low fee pools project helps algorand DeFi ecosystem to grow. It creates incentives for new AMM aggregators to pop up, it creates incentives for arbitragers to fight on algorand and provide the best price indicies available, and users gets better swap quotes when swapping between ALGO, USD and BTC.
- Pact fi receives higher targeted defi rewards because the Vote Coin liquidity providers at the Pact.Fi.
- Trading volume at pact is higher because of all dex optimizer swaps and all arbitrages being done through the vote coin token.
On Behalf of the Vote Coin DAO, please enlist the project pools to receive the rewards in fair manner.
@Adri If Pact.Fi ignores the vote coin users, can you please remove the $vote rewards you give to pact and allow us to distribute the targeted defi rewards directly?
1 Like
I’d still would like to see transparency on how allocation is decided.
Transparency could help bring More projects and Liquidity to PACT, it would also remove questions
over why is X is supported but not Z, and why X receives a larger amount then Y. This would also give projects clear metrics to strive for to be included in the DEFI rewards.
Please look at how tinyman handles their allocation transparency.
The current zero transparency does not benefit PACT and does not foster diverse growth of LPs on the platform.
1 Like
Looks good 
I hope that USDC weighting will lure more TVL. Will see how that goes, but good to try. Next gov period we are bit more wiser.
Regards,
ROAM
2 Likes