Tinyman - Targeted DeFi Rewards Report (GP9 and GP10)

Governance
, , ,
1

Hello Algofam!

We’re here to share our plans for GP10 and our latest achievements regarding the GP9 - Algorand DeFi Powerhouse: Tinyman’s Period #10 | by Tinyman | Jan, 2024 | Medium

We have been delighted to receive 1.75M ALGO rewards for the GP10 and look forward to distributing them through more than 40+ ALGO/ASA pools. While allocating the rewards for each pool, we considered some metrics: TVL, Volume (3 months), Number of LPs, Number of Farmers and Number of Transactions (3 Months). We hope this plan best fits our user base and ecosystem and improves the metrics we need to take care of.

We’d be happy to hear the community’s feedback!
Bahadir

4 Likes
2

The allocation to gALGO-ALGO is too high imo as the pool doesn’t have a particular high volume and leads to mostly dead liquidity since the most important pool for that trading pair is the stable swap on pact. Due to the efficiency of a stabkeswap a normal cpAMM doesn’t have high chance to be utilized. The liquidity just enables people farming a almost 0 risk option that onl leads to increased TVL but not volume

4 Likes
3

Hey, thank you for the feedback!

As I mentioned in the post, we prepared the allocations taking many metrics into account and here are some insights about the gALGO/ALGO pool.

  • It is the 3rd largest pool in terms of the 3-month volume, after ALGO/USDC and ALGO/OPUL pools. So, contrary to your argument, a remarkable volume is happening in this pool.
  • Since the depth in the pool is quite enough, it is the 5th largest pool among the ALGO/ASAs pairs in terms of the number of operations, including the swaps.
  • It is the 2nd largest pool by accounts participating in farms and receiving any rewards. Over 500 unique accounts added liquidity to this pool in the last 3 months and participated in farms. We care about this because this is the pool with one of the most active users in the ecosystem, even though it seems not very preferred as it is not a stable swap pool. So, we believe that it might be unfair to the user base not to incentivize the pool in a fair way.

Thank you again for your feedback and it is appreciated by Tinyman team.
Bahadir.

1 Like
4

Is there a way to search volume in the last 3 months? I only see 7 day on tinyman

Besides handing out money to the ecosystem from AF, how is this going to help attract new users? Will there be marketing campaign? I keep seeing same sentence “More TVL equals more users” which is not the case.

Would be nice to incentivized community’s with pool rewards instead of just allocating money to certain pools and farming for 3 months. Also reward tokens that have use cases implemented in the ecosystem

Reading all of the rewards proposals it just all seems like a funnel to push gAlgo pools with AF funds

I am Glad to see the increase in numbers from last period for Tinyman. I enjoy the platform.

2 Likes
5

Yah I love Tinyman but feel the gAlgo is to big people are already going to put money into that pool should really build up Meld assets and xUSD

1 Like
6

I have to agree with others, ALGO/gLAGO gets too much and is just “risk free” rewards. Maybe you can take 5000A-9000A off from that and allocate those into xUSD/ALGO for example. I think this helps Algorand ecosystem more and also helps xBacked project to grow (Only bank/government risk free USD stablecoin in Algorand ecosystem).

Best regards,
ROAM

1 Like
7

3rd largest pool in terms of volume alone or volume/TVL? Because if you don’t consider TVL and volume at the same time it doesn’t make a lot of sense imo.

TVL is kinda the work you put in and volume is the reward so it matters how much volume per TVL pools do

And to put a number out there without looking at volume/TVL of all the pools on tinyman: I don’t think it makes sense to use more than 10% of your rewards for the gALGO-ALGO pool

1 Like
8

I agree Volume is the most important metric not just high TVL. TVL is needed but there is a ratio of Volume that high TVL need to have rather than just have money sit there from large donors

9

Hey guys, @lobo @Richflairstv @dashawn.algo @ROAM

First of all, thank you for your interest. You are really contributing, and we are happy about it. Let me summarize our approach again, and let’s finalize the rewards allocation together. (Note: The following notes are not specifically related to the latest allocations; they outline a general approach.)

Since day one, we’ve primarily supported ALGO/ASA pools through our Targeted DeFi Rewards. You can review and criticize all the DEX allocations, but it’s a fact that no protocol has opened more ALGO/ASA farms than Tinyman. By stating this, we are not criticizing other protocols; rather, we are highlighting the strategies of each. For instance, while StableSwaps are prominent on the Pact side, ALGO/ASA pairs are our focus. Moreover, we maintain communication during the rewards allocation periods to ensure we incentivize different pools, targeting ecosystem growth instead of competition.

In line with the above strategy, we’ve partnered with nearly all projects in the ecosystem and have run double-dip farms. This is significant because, contrary to some criticisms, we predominantly stick with ALGO/ASA pools. This is the real risk area, compared to the supposedly risk-free side mentioned by some. Our significant market share in swap volume is due to our offering of pools with two different asset pairs, unlike stable swaps.

Lastly, our decision on reward allocations considers several metrics. Let me explain how the mechanism works.

Each metric has different constants:

  • TVL: 0.4
  • Volume + Fees: 0.5
  • LPs Count: 0.1

We also look out for red flags, such as:

  • 50K Volume in the last 3 months
  • 20% Ratio for 3 Month Volume / TVL
  • Less than 50 LPs per Pool
  • etc.

By assessing these factors, we set a constant per pool, determining the reward allocation for each (pool constant (%) * total rewards = pool rewards). E.g.

  • ALGO/USDC - 45%
  • ALGO/gALGO - 16.2%
  • ALGO/Chips - 4.7%
  • etc.
    After this, we make minor adjustments considering red flags and community concerns.

Updates with community Feedback:

  • gALGO/ALGO: Adjusted from 270K to 225K
  • ALGO/USDC: Adjusted from 765K to 810K (It was 810K again in the previous governance period as well)
  • YLDY Pool: No rewards

A tip about one of the Tinyman Governance use cases – Upon the release of Tinyman Governance, we plan to determine allocation per pool through Governance Voting. $TINY Token Governors will be able to make this choice by voting for the pool from which they want the rewards to be distributed.

Thank you again for your contributions!
Bahadir.

2 Likes
10

Hi,

I want to say from my behalf, I am not criticizing you in a bad way, rather giving you feedback like the whole point is. I share my views, because I want to best for you and for the whole ecosystem. I use mainly your DEX over the others and that is the reason why I am focusing on you over Pact or Humble.

I understand that you have metrics you use and allocations you proposed are mostly perfectly fine (Hoped more for COOP :wink: wink wink ), so I wanted to share with you those tiny details that I might have changed with explanation why. When I provide my view, it doesn’t mean that everything is bad. it was just minor tweak. Overall your allocations are pretty solid :+1: Good job guys!

That TINY token will be great thing for sure!

Best regards,
ROAM

3 Likes
11

Thanks for the explaining. Is there any strategy to bring new users into the ecosystem to use your platform or is this reliant on the rewards to gain traction for new users?

12

Should the Algo/OPUL pair be reviewed? Whenever OPUL + Algo are on my timeline its negative, the founder actively speaks badly about the Algorand community and the Algorand Foundation on twitter. And he’s moving the project to Arbitrum I believe? So why are we paying people to hold OPUL on Algo? I don’t have a problem with OPUL just surprised to see it right near the top as one of the most incentivised pools.

It’s a classic case of data not telling the full story - incentives should consider the positive network effect they can generate… increase the sol/algo, avax/algo, link/algo pairs to give us a chance to onboard users from cross-chain relationships. Combined those pools have less than half the rewards of OPUL pool but the untapped potential of bringing in new users is much greater.

4 Likes
13

Hello,

Instead of giving rewards to Galgo/Algo pool, the foundation might as well continue to give free algos to anyone holding Algorand in their wallet like how it was done from day 1.

Can I ask you Mr. Tinyman, what are the benefits of giving rewards to galgo/Algo pool? This pool is useless, it carries no weight, its completely unproductive.

And when time comes to redeem those Galgos for real algos, the TVL/Liquidity in the pool will drop right away.

It’s stupidity.

What am I missing, please tell me how this benefits the Algorand ecosystem?

I think, this only benefits Folks Finance as it attracts people to use their Dapp - Besides that, anyone know if Folks Finance actually make any monetary gains by letting ppl swap real algos for Galgo? Is there a fee or something?

I dont get it…

2 Likes
14

I like how you asked communities to match or add to the pools.

2 Likes