Proposal: Allocation of $TERRA for Stake and Farm

GOVERNANCE & PROPOSAL
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Reference: https://forum.terraport.finance/t/terraport-objectives-and-actions-for-the-optimization-of-the-ecosystem/823

Introduction:

This proposal aims to allocate 29,100,000 $TERRA to new stake and farm contracts, with the objective of increasing the liquidity, competitiveness, sustainability and participation in the Terraport protocol. The proposed allocation is divided as follows:

Stake (21,200,000 $TERRA):

The objective of the incentives to stake is to encourage users to lock their $TERRA tokens for variable periods of time, demonstrating trust in the protocol and contributing to its stability. The staking rewards are structured to better reward those who commit for longer periods:

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*Max Pool Size refers to the maximum amount of $TERRA tokens accepted by each contract.

Farm (7,900,000 $TERRA):

The farming incentives are designed to increase liquidity on strategic trading pairs, both new and existing, improving the efficiency of the market and the user experience. The proposed allocation focuses on pairs that involve $TERRA, $LUNC, $USTC and $USDC, with particular attention to the new concentrated liquidity pools (CLP) which optimize the use of capital and minimize the swap fees per transaction:

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Expected benefits:

Increased liquidity: By incentivizing farming on key pairs, an increase in available liquidity is expected, reducing slippage and improving the trading experience for users.

Greater competitiveness: A more liquid and efficient market will make Terraport more competitive than other DEXs, attracting new users and trading volumes.

Strengthening the Terra ecosystem: The incentivization of new pairs that involve $LUNC and $USTC with concentrated liquidity will contribute to revitalizing the Terra ecosystem, promoting the use of these tokens and supporting their value and making Terraport a reference point for low-cost swaps.

Increased user participation: The stake and farm rewards will attract new users and encourage greater participation in the governance of the protocol.

Conclusion:

This proposal aims to represent an opportunity to stimulate the growth and development of the Terraport ecosystem. The strategic allocation of $TERRA for stake and farm incentives will contribute to increasing liquidity, competitiveness and participation in the protocol.

Invitation to discussion:

The community is invited to discuss this proposal, provide feedback and suggest any changes to optimize its effectiveness.

This proposal will be put to a vote in Governance within 24 hours.

7 Likes
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Love it. Seems totally sustainable and aimed to increase trading and providing flows.

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Hi,
I would like to understand what this will also change about the farming rewards.
Reducing the distribution of terra via Staking rewards is interesting in itself.
On the other hand, if we lower transaction costs at the same time, this will prevent deflation.
Unless it has been calculated.
The V3 pools will also, I suppose, prevent the use of coinhall for trading?
Were you able to move forward with them on the subject of being referenced as a DEX?

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About the farming reward this proposal add incentives for key pairs that will change the defi trading experience on the network and open the door for all the lost volume of arbitragers in lunc/ustc/usdc.

Reducing the transaction fees and increasing the volumes on key pairs we can maintain the same deflation offering a better experience on Terraport and increasing the user base of the protocol.

About Coinhall, their team confirmed they are stopping and soon dropping the supporto of some chains, terra classic included. Soon Terraport will be the only working and complete tool to trade in a decentralized way on the Terra Classic Nework.

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Great, we need to change

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Thanks for the feedback.
For current LP holders in farming, will the transition to V3 be automatic?

For coinhall I was not aware. Rather disappointed, I would have liked terraport as a confirmed DEX.
This tool includes a lot of extremely practical things. But nothing to do with this proposal for terraport.
I don’t have enough perspective. I’m the team for this one. We will see the result.
:+1:

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Good idea but I would bring at least 16% instead of 14% for a year of lockdown

1 Like
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I think the new farms will be for the new pools so probably you´ll have to move your liquidity to provide it to the new pools. I don´t know if it´s automatic but I think it´ll probably be manual.