[Proposal] Redirect ANC-UST rewards to Astroport

Community Initiatives
21

The only problem/issue I have with ASTRO is the non-transferability of their vxASTRO governance token.

Efficient markets need assets to be fungible. Some of the ppl who claim vxASTRO tokens will prefer delegating it to actively participating in ASTRO governance. That is a good thing, not a bad thing! If someone staked some xASTRO for vxASTRO and got a lot of votes locked up, but something comes up in his life that forces him to be much less involved in ASTRO governance, the community suffers for his lack of involvement, and the vxASTRO holder is forced to eat an opportunity cost of not being able to transfer ownership of his vxASTRO. I donā€™t get that system at all. But everything else ASTRO brings to the table seems like progress to me.

22

You just think about the airdrop.
That is why you think terraswap gives nothing.

In fact, you always get the fees Volume * 0.3%
Astro pair designed for Astroport so it uses 30% of the fees

Mirror governance knows about it

For constant product pools, this fee will initially be 0.3%, divided as follows:
a 0.2% fee (2/3rds of the total fee) paid to the LPs for the relevant pool ā€” this remains denominated in the native pool tokens and acts as a payment by increasing the size of the pools (thus increasing the number of tokens that LPs can redeem when they remove liquidity); and
a 0.1% fee (1/3rd of the total fee) paid to the Astral Assembly ā€” this is used to automatically purchase ASTRO from ASTRO liquidity pools; the purchased ASTRO is then deposited into the xASTRO and vxASTRO staking pools in accordance with a ratio set by the Astral Assembly (initially 50/50) ā€” see below under ā€œToken Economics (ASTRO)

I know the decision has already been made.
But want to let people know this fact.

1 Like
23

I knew that Terraswap pays a commission fee. For ANC-UST itā€™s 6-8% - https://alpac4.com/TerraSwapDashboard/. Someone asked about this in the Anchor discord and an Anchor person said it didnā€™t include Terraswap rewards. But Terraswap rewards arenā€™t that big as a % of the total APY.

image

What is the corresponding Astroport txn fee? 0%? 30%?

24

Terraswap gets zero from the user. It is free.
A user who wants to swap pays the fees to the liquidity provider by the contract.
(Terraswap itself does not pay the commission to the user since it is free)

The APY depends on the Volume of the pair ANC-UST (the fees(commission) made from swap)
The APR will go up if the volume is bigger. (assume ANC price is the same)
(Dex is not a matter for the volume, that is the market volume)

The biggest difference is Astro pair uses 30% of the fees for an Astro purchase and gives (vAstro, vxAstro) rather than giving ANC to the user.
(0.3% of volume will be divided into 0.2% commission + 0.1% Astro 0.1/0.3 == 33%)

ANC will be supplied for the swap and Astro will be demanded.
(As you know, the price goes up when there is more demand. not supply)

It happens for all pairs. I would say Astro designed well for their product. NOT for the other governance.
Every swap will purchase Astro and their tokens will be supplied for the swap.

Do you still think it will be good for your Governance?
It might be good for a short period or the Lp provider could earn more when Astroā€™s price goes up.
But I still believe it is bad for the other governance.

I would suggest when you got Astro from Airdrop please make a governance poll to reduce the Astro purchase ratio (30% is huge)

It is my opinion you donā€™t have to agree but I believe like this.
BTW, I am fed up with this situation. it will be the last reply. Thank you

2 Likes
25

@Liam I really appreciate your posts, they help me learn more about the underlying mechanics and incentives of this ecosystem and I am sure other ppl appreciate it as well.

26

@all: I am a newbie to this space but reading through, I feel that moving the ANC-UST LP pool rewards to astroport makes sense. But my concerns, and I appreciate your patience, are as below:

  1. How do we move our LP stake over to astroport?
  2. We have a LP in anchor with no time locks while astroport requires a lock. Also, it seems we canā€™t participate in UST-ANC LP in astroport at this stage anymore. So how do late comers in ANC-UST LP on Anchor participate in this?

If the existing LPs in Anchor canā€™t move over to astroport, then this proposal sounds very harmful for them? i.e. 1) removing the rewards on anchor and canā€™t move to astroport to get access to ASTRO drop and ANC rewards.

If someone can explain this to me please. Thanks much.

27

Welcome to the forum, @gg_veritas!

I think you are mixing up Astroportā€™s lockdrop (an event involving locking liquidity for the launch of the protocol), which has now ended, and the normal state of operation for Astroport. Liquidity providers can now provide and withdraw liquidity as they see fit, with no lock.

Hereā€™s a guide on how to interact with and move your liquidity to Astroport: Adding/Removing Liquidity - Astroport

In short: providing liquidity for ANC-UST on Astroport is currently available to anyone who wishes to participate, and so moving the rewards over to that pool is unproblematic and was already agreed upon in a previous governance vote :wink:

1 Like
28

@Spaydh Thanks for your reply. 2 follow up questions please:

  • is there a date when the UST-ANC LP will stop receiving the rewards on Anchor web app?
  • when do the Astroport UST-ANC LPs start receiving rewards in both ANC and ASTRO?

Appreciate you taking out time. Thanks

1 Like
29

ANC LP incentives are scheduled to end for good in March 2022 if we donā€™t vote to end then sooner in at the end of January to cap emissions

1 Like
30

Happy to help :slight_smile:

  1. See @bitn8ā€™s answer above
  2. This one is a bit trickier to answer cuz it depends on when the contracts are migrated. According to Astroportā€™s team, that should be in the next few weeks.

If you need quick answers to specific questions, you can also check anchorā€™s discord, there are plenty of chads helping out in real time there :smiley:

1 Like
31

Well then that means when ANC rewards move to Astroport, we only have about 1 month left of rewards.

So those that locked ANC-UST in Astroport have been losing out significantly on ANC rewards.

Why would people want to end LP incentives sooner if they going to end in March 2022 anyways.

Essentially the ANC-UST generator on astroport will only be a generator for 1 month then it just becomes an ASTRO farm.

1 Like
32

@bitn8 Where would I find information like this, as it is released?

33

Mostly following the projects Twitter and medium accounts, as well a the GitHub repositories for these projects for more granuslar info

34

and forums indeed
it is a check list process

4 Likes
36

So this this is not needed anymore now? Because we get astro on anchor now, or is it still better to move your lp to astro???

edit

ok stupid question somehow, moving was never necessary really, but I can join other polls there , ok , got it