Proposal: Grant ASTR from Astar Treasury to Zenlink as a Part of the Incentive for Liquidity Program

[Lu1]

Proponent Address: YFZUVr9JRE3AMZ8CTjedJkvv9E7q2jcEvQJ8Y9vBgRYhPWc

Requested Amount: 1,200,000 ASTR

Date: 14.07.2022

Short Description: Since Zenlink was announced to be integrated into the Astar network, the Astar community has been calling for Zenlink to be launched on the Astar network as soon as possible. We hope to have the support from the Astar team to achieve a better launch and help the development of the Astar network, which will also benefit the community.

Background

Hi Astarians, this is Lu1 from the Zenlink team, we’ve been building Zenlink for over two years now since 2020, the core members of the Zenlink team are from imToken and also early supporters of Polkadot. We are confident in the future of Polkadot and have been working to deliver the best product for the Dotsama ecosystem.

Zenlink has announced the Astar network as the next major integrated parachain and has applied for the Astar Builders Program, the proposal has been approved and you can get more details here: https://forum.astar.network/t/zenlink-builders-program-application/3621/40

This proposal will serve as the next step in complementing the Builders Program proposal to facilitate the formal launch of Zenlink on the Astar network.

Proposal

The purpose of this proposal is to request the allocation of ASTR from Astar treasury to Zenlink as a part of the liquidity incentive program.

We want to request 1.2M ASTR from the Astar treasury as a liquidity incentive for the first month after the launch of Zenlink on the Astar network. In addition the Zenlink’s native token ZLK will also be part of the incentive program. There are 4 pools that will be created when Zenlink is launched on the Astar network: 4pool (USDC+BUSD+BAI+DAI), ASTR/USDC, ASTR/DOT, ASTR/ZLK, and ASTR grant will be used for liquidity incentive of the above mentioned pairs.

To better describe the goal of liquidity, we have created a table and will add a statement below so that the community can more clearly understand our request and how it will be used.

Statement:

1. The price of ASTR and ZLK changes daily based on the market, but the total amount of ASTR and ZLK in the proposal will be fixed. And the target APR is the estimated minimum APR of the pool when the target TVL is reached.
2. Once Zenlink lands on the Astar network, we will observe the TVL, volume, etc. of each pool and adjust the distribution of rewards in each pool according to the actual situation, and the total rewards will be ensured to be distributed among the above pools within one month.
3. The target TVL was set as a feasible target based on current market conditions and Astar network liquidity, and we expect to exceed the set target. If the TVL exceeds the target or Zenlink wants to increase the TVL, we may increase the ZLK reward allocation (total supply of 100M).
4. The incentive program above only covers the first month, but the ZLK incentive is continuous and we want it to be long-term.
5. We hope to build deeper collaborations with other projects in the Astar ecosystem to bring a better DeFi experience to our community. By the way, if you are a new project on the Astar network and want to create liquidity on DEX, you are welcome to come to Zenlink and try out the Bootstrap feature, learn more: https://wiki.zenlink.pro/zenlink-dex-dapp/bootstrap

The goal of the proposal is to help grow the TVL of the Astar network and provide the Astar community with the best stablecoin exchange platform, while connecting Standard AMM and Stable AMM with smart router to bring a better trading experience to users. Learn more about Hybrid AMM: https://wiki.zenlink.pro/zenlink-dex-dapp/hybrid-amm

To demonstrate our ability to reach the goal, we have added the following resources for community reference.

1. Audit Report: https://wiki.zenlink.pro/resources/audit-report
2. The funds will be used to incentive the active liquidity providers with Zenlink Farming Contract. We will deploy and manage it by using a multisign wallet. For liquidity allocation, please see the previous illustration.
3. Zenlink has a total volume of $933M since its launch in November 2021, with a peak TVL of $150M. The current TVL has declined due to downward market conditions, but I would like to show that Zenlink still has enough traction to reach its goal, check out the Zenlink Dashboard.

Responsibilities

In order for the liquidity provision to be funded in a completely trust minimized or trustless way. Therefore in this section we explain how the beneficiary address is set up, who controls it, and will be the management work for the address.

1. The address of the fund recipient: 0x2FAA24DC69D8dFd8EA169b244cA257eA4e67d500
2. How can we contact the manager of the funds?
   Name: Victory Van
   Email: vv@zenlink.pro
   Telegram: @cvvz2077

Links

Twitter - Website - DEX DApp - Telegram - Discord

[moonme]

I support this proposal. This is a healthy way to use the treasury funds.

[souleater]

Already using ZenLink from a year ago when it was still in beta testing. I will support this proposal to expand Astar userbase

[kaboji]

This looks promising, I have been using zenlink for a while and it’s very user friendly. It also kept rolling out new features steadily. I am sure it will be a great plus for Astar ecosystem

[Lu1]

Thank you Toga, we hope to grow with the Astar network!

[Lu1]

There is no doubt that this is one of our goals, and thanks to your long-standing support, we will do better.

[yoshida2]

I see good synergies for both Astar Network and Zenlink in promoting both ecosystems.

[bLd759]

This seems a good use of the treasury, Zenlink being a cross chain DEX the network utility is high and the project has proven its efficiency over past years.
1.2M is a reasonable amount, I’m in favor if this proposal.

[Matt]

Seems reasonable and perfect use for Astar treasury. Synergy is already in proposal adding ASTR and BAI to the list. These times need good cooperation and help from your partners!

WAGMI!

[GuiGou]

From my point of view, incentives are required to bring many users into the blockchain but I am not sure the period is the best one.
In bear market we should focus to build smart features and nice dApps and during the bull run, high APR attracts liquidity providers and users.
I use Astar daily and I see more and more nice dApps with smart features. So it means the builders are doing their job but I would like to be sure in the next bull market the treasury fund will be enough to provide high APR and onboard maximum users.
So I would not like to see an empty treasury when it will be the "best time " to provide high incentives. It’s just my hunble opinion and I don’t know the current treasury fund.
Anyway I’m currently using Zenlink, so I will benefict of these incentives

[LaPepa]

I support this request from the Zenlink team, this incentive will be essential to reach Astar Network strong.

[anon24836865]

So excited with this project! Looking forward to see the 4 new pools. (USDC+BUSD+BAI+DAI), ASTR/USDC, ASTR/DOT, ASTR/ZLK . I think this proposal approval will be very successful and will attract huge TVL to our ecosystem.

[Gaius_sama]

Glad to have Zenlink onboard, I support the proposal. It’s a good and smart way of using the treasury of Astar!

[pitcoin777]

It’s super exciting having such a nice protocol willing to expand Astar ecosystem on Polkadot! I support the proposal

[DongDong]

very exciting for this, I love Polkadot because of the cross-chain issue. Zenlink is going to be a cross-chain DEX, and Astar is going to be a cross-chain Dapp hub, both my favorites, very happy to see Zenlink running on Astar.

[Stakenode.dev]

Full support for this proposal from Stakenode. Let’s get this party started!

[cmalize]

Sounds interesting. Thanks for this proposal.

[AlexPromoTeam]

I support this proposal, Zenlink is trusted project

[defiguy]

I support this proposal. Zenlink will provide bigger trust on Astar Defi ecosystem, because it has a team with experience and tested smart contracts. Its not the best market conditions for liquidity incentives, but its nice to see projects like Zenlink deploying contracts on Astar.

[Lu1]

Yeah, we want to bring the more friendly DEX to a wider range of users, and thank you for your support!