BANK Emissions Distributions (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 Feb 28th - March 31th.

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.

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 Q1. 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%
1 Like

No changes based on the temperature check discussion? Will the rewards manager be live before the next rewards distribution?

I’m fine with keeping it as is for this period, but I think we need to push for a change in the next period since it’ll be the start of a new gov period.

3 Likes

agree, the vault BANK emissions shouldnt be changed now. but they def should when the next period starts imo

2 Likes

Agree, looks good as-is.

1 Like

Hi,

With all rewards paying out in BANK there is not enough opportunity to recycle those BANK rewards with the 2 BANK LPs only having total of 8% of rewards pot, other than increasing locked amount. That is creating all the selling pressure on BANK emissions and hence a massively undervalued price on BANK. This will rectify itself one day but only long term investors are being incentivized in meantime. Balance could be restored with higher % on both ALGO/BANK and STBL2/BANK LP pools and/or increasing the locked bank boost effect…

Unfortunately, right now Algofi’s BANK is suffering from poor tokenomics perception in the community when in reality it is the biggest ASA success story so far with 65% of total Algorand tvl… I expect this to be addressed with Rewards manager but would have been good to boost this through March.

Happy to hear thoughts and any counter arguments if I missed something… price of BANK right now tells its own story I guess to some degree.

Rgds DavidW

3 Likes

Nice first post @davidw ! Keep being active here. I think the protocol governance needs a voice like yours.

1 Like