BANK Emissions Distribution (December 31st - January 31st)

Temperature Check
1

Summary

Before the Rewards Manager is launched, the Algofi DAO will approve allocations of BANK emissions on a monthly basis. Since the voting period is 2 weeks from December 16th - December 31st, this proposal concerns emissions from December 31st - January 31st.

After the voting period for this proposal passes, a new proposal for allocating emissions will be launched for voting by the community, which will concern emissions from January 31st - February 28th.

Users are encouraged to voice their opinions on future emission allocations in the Temperature Check category of the governance forum to ensure they are taken into consideration for preparing emissions proposals. Ultimately, this process will be automated on chain with the Rewards Manager.

The motivation is to promote the growth of liquidity on the Algofi lending protocol and DEX.

Emission allocations can be found below.

Proposal

Emit to Lending markets, Lend and Earn contracts, Staking contracts, and the Algofi Vault in the proportions outlined below. As markets have grown more bearish, rewards are recommended to be concentrated in blue-chip assets like USDC and ALGO. The Algofi Vault allocation is unchanged ahead of the next governance period launching in early Q123. Allocations to the stablecoin Lend and Earn contracts and STBL2 USDC LP market are kept elevated to promote stablecoin liquidity.

Contract Current Allocation New Allocation Change
USDC L&E 26.75% 26.75% 0.00%
USDT L&E 2.00% 2.00% 0.00%
ALGO Borrow 0.50% 0.50% 0.00%
USDC Borrow 0.50% 0.50% 0.00%
goBTC Borrow 0.25% 0.25% 0.00%
goETH Borrow 0.25% 0.25% 0.00%
USDT Borrow 0.25% 0.25% 0.00%
STBL2 USDC Market Supply 32.50% 32.50% 0.00%
STBL2 ALGO Staking 9.00% 8.00% -1.00%
STBL2 goBTC Staking 3.00% 2.00% -1.00%
STBL2 goETH Staking 3.00% 2.00% -1.00%
USDC ALGO Staking 4.00% 7.00% 3.00%
ALGO Vault 10.00% 10.00% 0.00%
STBL2 BANK Staking 4.00% 4.00% 0.00%
ALGO BANK Staking 4.00% 4.00% 0.00%
5 Likes
2

I’m good with this, but would like to see ALGO Vault go down over time. I think the vault is incentivized enough with it’s features and defi boost. I am not going to stop using it whether the rewards change personally. I think incentivizing STBL2 pools and USDC liquidity should continue to be the main focus.

5 Likes
3

Looks good to me! :+1: :+1:

4

I second this. I would incentivize more pools (STBL2 or others) as their total liquidity remain low.

1 Like
5

Why not any BANK emissions to USDC or ALGO Borrow in order to incentivize borrowing on the protocol?

1 Like
6

There are. The proposal is to keep them unchanged at 0.5%

7

Looks good, I’m good with this.

8

Seems to small, why not make it 3%?

9

Let’s progressively reduce the vALGO emissions and add it to ALGO/STBL2 and USDC pairs. I think this should help further improve liquidity on Algorand and perhaps begin the adoption of STBL2 across the ecosystem.

10

@fifthrace has it right. Getting more USDC (and STBL2 to a lesser degree) is the way. 2023 will be the year of USDC.

1 Like
11

Soon, when the rewards manager is launched, the allocations will be decided by us governors. It will be interesting to see where they end up.

1 Like
12

I’m looking forward to seeing how we allocate it too. I’m going to put my BANK on USDC Lend and Earn.

1 Like