BANK Emissions Distribution (February 28th - March 31st)


Before the Rewards Manager is launched, the Algofi DAO will approve allocations of BANK emissions on a monthly basis. This proposal concerns emissions from February 28th - March 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 March 31st - April 30th.

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.


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. 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 8.00% 8.00% 0.00%
STBL2 goBTC Staking 2.00% 2.00% 0.00%
STBL2 goETH Staking 2.00% 2.00% 0.00%
USDC ALGO Staking 7.00% 7.00% 0.00%
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%

I’d like to see Vault output reduced at the end of this governance period (so users don’t feel rugged half way through a gov period). I believe the incentive is already there with both gov and defi rewards and we could use those emissions somewhere else. Am I off base in this judgement?

The main argument against that I see is that emitting bank for vALGO helps incentivize AlgoFi over other gov staking platforms. I think the BANK is better used elsewhere though. Thoughts?

edit: this gov period


totally agree! additionally all the BANK incentives go essentially to VCs which would use the vault anyways because of the Defi governor APR boost


I agree on the reduction of Bank emissions to vault. I mean I have my algo in the vault but I think the defi incentive from foundation is enough. The emissions would be better used to incentivize the other aspects of AlgoFi.


I agree with @fifthrace grace on this one.

In addition, can we put the USDT L&E and the USDT Borrow to 0%. I believe Algofi will be a better platform without Tether liquidity. I plan to vote against this distribution model like I did last month because of the BANK emission allocation for the Tether L&E and Tether Borrow. Users can easily swap their Tether to USDC or STBL2 to participate in the Algofi protocol.

There is no reason to decrease the vault allocation of bank emissions. It is ten percent of the bank-reward per $1k compared to goETH and goBTC borrows for example. Those are fraction of the USDC/STBL2 lending pool, which is a fraction of the farm-page USDC pool, which is a fraction of the farm trading pools in bank emissions.

The vault is a good system that has been promoted, and is used, by users with different amounts of capital, not just VCs.

VCs with their increased capital-at-hand: they will be a larger term in the summation of any total pool. This does not stop little guys from making an intelligent decision to use the vault too.

if they provide liquidity to the lending market or liquidity pools they help the protocol directly tho. with their vaulted ALGOs they only increase TVL of the protocol and thats it

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Please remember the primary efficiency gain of Algofi (and why it’s a winning protocol): the first capital inefficiency removed was the separation of stablecoin minting and lending/borrowing. The existence of capital as collateral against which STBL2 can be minted is core to the protocol.

Algo is a critical portion of the collateral on the platform from which STBL2 is minted (and the vault version specifically cannot be lent out. It is a positive feature to have a long option that does not increase the capability of bears to short).