As XCM on Astar is now live, DOT can now be transferred from the Polkadot relay chain to Astar Network. Since DOT has huge potential but lacks utility at the moment, Defi on Astar Network will be the best place for users to stake their DOT. Major Defi protocols on Astar are planning to integrate DOT in the coming weeks and we are planning DOT Festival which aims to boost the users to provide DOT liquidity to such protocols.
The main content of the DOT Festival which starts 5/28~5/30 (still waiting for confirmation) is providing high APR for DOT-related pools on ArthSwap, Starlay, and Astrid DAO. To further incentivize the users to bring their DOT, we are planning to reward ASTR tokens additionally to those who staked on Defi protocols on Astar Network because capturing DOT liquidity is extremely important for our network’s growth.
Therefore, we propose to use 6M ASTR from Astar treasury to reward those who provided DOT liquidity through this campaign.
Timeline of DOT Festival
New protocols will be releasing DOT-related pools in each batch. Each batch is around 1 week.
Batch 1: ArthSwap launches WASTR/DOT pool
Batch 2: Starlay launches DOT pool
Batch 3: AstridDAO launches DOT collateral
(The order of protocol for each batch might change due to development progress)
-All rewards will be split with the LP holders according to the amount each staked. (e.g. If the total reward is 1M ASTR and you owned 10% of the total pool, you will earn 100K ASTR)
-Snapshots will be taken sometime in the last 2-3 days of each batch (the timeline for the snapshot is still being finalized) and ASTR will be rewarded according to the data from the snapshot
-Vesting will be applied to avoid sudden selling pressure (3-month vesting)
Batch 1: 1M ASTR rewards for ArthSwap LP holders (Total 1M ASTR)
Batch 2: 800K ASTR reward for ArthSwap LP holders and 1.2M ASTR rewards for Starlay LP Holders (Total 2M ASTR)
Batch 3: 500K ASTR reward for ArthSwap LP holders, 1M ASTR rewards for Starlay LP Holders, and 1.5M ASTR rewards for AstridDAO DOT depositor (Total 3M ASTR)
What to take into consideration for the reward structure
- We have to structure it in a way that users would like to keep the LP from the previous batch but still stake in new protocols each batch. This means even if Starlay starts DOT pool in the second batch, users still have the incentive to keep the LP on ArthSwap (Not remove all LP). Therefore, we made ArthSwap still applicable for the reward of the second batch. However, we reduced the amount of reward for protocols in the second batch or third batch to create an incentive for users to stake in a new protocol at the same time.
- Vesting will be applied to avoid sudden selling pressure