BANK Emissions Distribution (October 31st - November 30th)

Proposal Discussion
1

Summary

Executed October 31st, 2022

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 October 17th - October 31st, this proposal concerns emissions from October 31st - November 30th.

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 November 30th - December 31st.

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

Begin BANK emissions to Lending markets, Lend and Earn contracts, Staking contracts, and the Algofi vault.

Contract Allocation [%]
USDC Market Lend and Earn Supply 23.5%
USDT Market Lend and Earn Supply 5%
ALGO Market Borrow 1%
USDC Market Borrow 2%
goBTC Market Borrow 0.5%
goETH Market Borrow 0.5%
USDT Market Borrow 1%
STBL2-USDC-LP Market Supply 32.5%
STBL2-ALGO-LP Market Supply 8%
STBL2-goBTC-LP Market Supply 4%
STBL2-goETH-LP Market Supply 4%
USDC-ALGO LP Market Supply* 4%
ALGO Vault Supply 10%
STBL2-BANK-LP Staking Contract** 4%

* If the first proposal for launching the USDC-ALGO Lending Pool does not pass, the percentage of emissions allocated to USDC-ALGO as noted above will be redistributed pro-rata (according to percentage allocated) to the other contracts (e.g. in option B the USDC Market Lend and Earn Supply will get 21% / 97% * 3% = 0.64% if the USDC-ALGO proposal does not pass).

** A STBL2-BANK Lending Pool will be launched ahead of the governance launch on Friday, October 14th

EDIT (10/20/22): As discussed in a comment below, the original proposal erroneously stated the launch of emissions as 10/28 but given the proposal closes at 10/31, this is an unambiguous error and not possible. The dates have been adjusted accordingly to reflect a start date of 10/31.

28 Likes
2

The proposal provides a percentage allocation. What is the amount of Bank that will be distributed during this first period?

7 Likes
3

Will the number of BANK distributed be the same every month?

What method was used to determine the allocation of BANK? How is that reflected in the proposed allocation above?

2 Likes
4

Based on the tokenomics docs, it looks like a little more than 8.7 million BANK per day in the first year (12.5% of 2,550,000,000=318,750,000 /365=873287.671)

2 Likes
5

Your 8.7M figure is off by a decimal place. According to your math it’s 837K per day.

4 Likes
6

In my opinion the
|USDC Market Lend and Earn Supply|23.5%| and
|USDT Market Lend and Earn Supply|5%|
is too high. Instead we should subsidize borrowing with a bit more. Think about it, whoever wants to borrow automatically has to lend, because of collateral. And, if everyone only lended it wouldn’t be of any use, the protocol needs borrowing to make their profits, which can be incentivised by a higher %-supply for borrowing. And additionally with high utilisation rates the lending APY automatically go up and more people will deposit.

8 Likes
7

i feel like its a good idea to incentivize supplying stablecoins now aggressively to have a good fundament and then shifting the coming emissions a bit more more to the borrow side like you said hey.

for the coming periods i personally would think about reducing the emissions of USDT more because it doesnt get used much in the Algorand ecosystem, everybody just has it because they can Lend and Earn it on Algofi or Deposit farm it on Folks Finance

12 Likes
8

sincerely doult if there will be enough stbl2/goBTC, we all know how dangerous the bridge could be, and how we value our bitcoin

9

This looks like a good start to me. I like the heavier incentives for stable coins and the lending pools. I also feel good about larger allocations for USDC and STBL2 (via the pools) than for USDT. I am also okay with the 5% for USDT, but that is only because I know it has a 0% collateral factor and it is not a threat to the lending market.

4 Likes
10

USDT and USDC should be equal tbh, we need more USDT deposited, especially it being the biggest Stable

11

the thing is where do you see USDT getting used in the ecosystem? i personally feel like no one uses it really and most of the people who i talked to didnt want to use because they prefer USDC (because of the backing reason). the reason it has a bigger total MC on other chains is not really a good reason imo

additionally USDT has the collateral factor 0 (same like on AAVE for example) and that means it doesnt have the same usecase as USDC (for now)

6 Likes
12

If you’re going to offer pool incentives for goETH and goBTC, why not offer pools+incentives for $GOLD and $SILVER? If the idea with the go’s is that you’re building reserves with digital commodities, wouldn’t you also want tokens that reflect actual commodities?

1 Like
13

Hi folks.
I’m just wondering how the emission will actually work? It will be done at every second or once a week/month/etc.?
Thank you.

1 Like
14

Waste of time and no market for those assets…

15

Has this lending pool launched yet?

16

The expectation is that it will be launched tomorrow along with BANK rewards so as to facilitate trading.

17

Hi all. I’m just wondering when will BANK be distributed and how to get it? Thanks.

18

@nlh There is an airdrop today for active users. A pool will be created today and from using the system outline in proposal above.

19

Wouldn’t parties have to opt in in order to receive?

20

Thanks for the response. I was under the impression that it would happen yesterday or so. And there’s still no official information yet so just wondering what’s going on. Thanks.