HomeNewsTerra Dominates the Scene: CAPA Incentives Drive Growth in stATOM/SOLID Astroport Pool

Terra Dominates the Scene: CAPA Incentives Drive Growth in stATOM/SOLID Astroport Pool

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  • The proposal suggests allocating 7M CAPA to the stATOM/SOLID pool on Astroport Terra, aiming to increase liquidity depth and support collateralization.
  • The incentives would be distributed in three tranches over eight months, potentially generating significant value for Capapult and the Terra DeFi ecosystem.

In an effort to enhance liquidity and collateralization options, a new proposal has been introduced to allocate 7M CAPA to the stATOM/SOLID pool on Astroport Terra. The primary objectives of this proposal are to increase liquidity depth and facilitate the use of stATOM as collateral for the SOLID stablecoin.

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The first objective of the proposal is to increase the popularity of the stATOM/SOLID pool by providing CAPA incentives. Currently, there is a lack of deep stATOM trading pools on Terra, despite the popularity of Stride’s stATOM throughout the Cosmos. By incentivizing the stATOM/SOLID pool, it would become the deepest stATOM pool, attracting more traders and contributing to the wider adoption of SOLID.

The second objective is to facilitate the inclusion of stATOM as a collateral token for SOLID. With the necessary development work already completed, it is expected that stATOM will soon be white-listed. However, having liquidity available on the Astroport DEX would make it more convenient for users to collateralize stATOM on Capapult, as they would be able to buy and sell it directly on Terra. This increased convenience can encourage more users to collateralize stATOM, thereby boosting the amount of SOLID minted and increasing protocol revenue.

The proposal outlines an eight-month schedule for distributing CAPA incentives to the stATOM/SOLID pool. It includes three sequential tranches of incentives, totaling 7M CAPA, with the first two tranches distributing 2.5M CAPA each over one month, and the third tranche distributing 2M CAPA over six months. By considering the addition of ASTRO incentives and potential appreciation in the price of CAPA, this distribution schedule aims to provide sufficient liquidity to the pool while minimizing the use of CAPA incentives.

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If approved, this proposal would lay the groundwork for Capapult to support stATOM as its first non-Terra collateral token. The inclusion of stATOM as collateral is expected to attract attention from across the Cosmos, benefiting both Capapult and the Terra DeFi ecosystem as a whole.

The proposal is currently open for voting, and any questions or comments regarding the proposal are encouraged before the voting process begins.

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Jack Williams
Jack Williams
As a Blockchain Analyst, I specialize in analyzing the performance of decentralized systems and optimizing their efficiency. Through data analysis, I provide insights on blockchain technology, smart contracts, and cryptocurrencies to help businesses make informed decisions and improve their operations.
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