Referendum #580
Treasury #742

StellaSwap Incentive Program

Treasury
1yr ago
3
Awarded

Proponent Address: 126AevKcm3RXJazGQWKYwtRvpjMmCBGV5W6LWeWLEc17YQ2n

Requested Amount: 1,000,000 DOT

Date: 07-03-24

Short Description: Liquidity incentive program to attract liquidity and users into the Polkadot ecosystem and deepen market depth to kickstart flywheel effects to the rest of the network.

Summary

  • Primary Goal: Grow DeFi Activity (active users, transactions, TVL) on Polkadot

  • Project Description: StellaSwap is a highly-efficient, integrated DEX that features a standard, stable and concentrated liquidity AMM to facilitate the most optimal price discovery for assets on Polkadot

  • Requested DOT Grant Amount: 1,000,000 DOT

  • Use of Grant: The ecosystem grant will be used to grow & deepen the market depth of strategic assets for widespread utility across the Polkadot ecosystem. The effectiveness of grants via StellaSwap can be quantified via our efficiency rate, which multiples the market depth beyond our target TVL goal

  • Motivation for Grant Amount: Liquidity depth is a necessary requirement for a robust and efficient marketplace that powers the ecosystem. StellaSwap accounts for the highest trading volume in Polkadot - both cumulative & daily - and DOT grants will foster much deeper liquidity for users and help accelerate the DeFi flywheel effect by increasing network activity and exposure

Full Proposal doc Here

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[Deleted Account]

Any comment on why you moved away from 40% match of the Dot rewards as the live hydra proposal and went for 15% instead?

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[Deleted Account]

hey sirs im ok with give funds, but only want to say that should have a better organization of the selected pairs/tokens

why stdot( own product??) should have more than ldot or vdot, when it is not adopted like the others (well vdot is the most adopted, so really this should have more liquidity)

Or why pen should have more target and liquidity incentives than CFG per example when is a top project?

manta have much greater one than the rest, so?

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[Deleted Account]

I would counter-propose that some of these funds not be used for liquidity incentives which are paid and gone. Instead, more than half should be a Polkadot treasury-owned DOT/USDT LP deposit into the DEX, so that that pair will retain liquidity indefinitely instead of constantly paying to retain mercenary capital. Treasury Owned Liquidity (TOL). Yes Stellaswap uses a concentrated liquidity model now, but this deposit can be set to "full range".

One constraint I've heard is that there's no way for Polkadot governance to directly control an EVM address. Moonbeam gnosis safe would be an alternative, but again requires custody by trusted individuals. So this becomes a feature request for future XCM design and Moonbeam precompiles to enable Polkadot treasury to retain control of funds on EVM accts in the future.

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