Providing Liquidity for LAY

We announced that Starlay Finance would be buying up LAY in this post. All 4M ASTR ($240,000 at the time of writing) collected at the IDO will be used to buy back LAY. In addition, all rewards earned by Starlay Finance from dApp Staking would be used to purchase LAY permanently. This will create permanent buying pressure and this becomes a factor that drives up LAY’s price. We believe that these actions are beneficial to all LAY holders, including IDO and Auction participants.

We would like to provide $1M worth of liquidity to stabilize the price after the price rises. Currently, we can put liquidity in ASTR-LAY pairs on ArthSwap. If we can provide about 50M LAY from our Treasury and 8.5M ASTR or so, we can deposit $1M worth of liquidity.

We propose the following two options, and we are happy to discuss which is more attractive for the Astar Ecosystem and Starlay Finance Community.

  1. Starlay Finance will borrow ASTR from Astar Treasury for a period of 12 months; after 12 months, we will again decide in the forum whether to withdraw liquidity or leave liquidity. The interest rate will be 1.0% per year, and we will pay Astar Treasury in LAY. All rewards earned by providing liquidity will be used to buy back LAY.

  2. Starlay Finance lends LAY to Astar Treasury for any period. Astar’s vote would determine interest rates and terms. The Astar community can vote on using the liquidity rewards and everything else, except that $1M of liquidity will be provided.

Ending Notes:
Feel free to share your feedback, and we are open to any suggestions from our community to make this strategy final.

5 Likes

The buyback LAY can be also put back into the protocol for a future re-mine. This will help Starlay Governance to be more decentralized and Lay to be more liquid.

The buy-back process can be done transparently so that every community member is able to follow the process.

Adding more liquidity will help the price stability of LAY and will give users the ability to buy LAY without a high slippage on ArthSwap. Also mention that this proposal execution will create a constantly buying pressure for $LAY benefitting all lay hodlers.

The increase of liquidity is important to decrease the price volatility of LAY and bring us one step closer of having LAY added as a collateral.
Thank you

4 Likes

Thank you for the proposal @neo_defi. If we need to choose either 1 or 2, 2 is better. Either case, we don’t set interest rates because our treasury is not for profits but for common goods. However, it is true that the treasury will receive the liquidity mining reward. This will be used to diversify the treasury’s portfolio.

In the case of 2, ideally, Astar team and Starlay team are going to set up a multi-sig and manage the fund through the community’s governance. However, Starlay is on EVM and it still takes time for Gnosis Safe to be delivered. @Maarten @Core @Ambassadors any thoughts?

6 Likes

Thanks a lot for sharing your proposal @neo_defi

It’s great to see that not only Starlay but also other protocols request feedback from the community. In a ‘Web3’ business, the community is the origin of the value. Without community, any token can’t be valued well even with great products, especially in the bear market. This also reflects on us ‘Astar’. Thanks to our great Ambassadors and community-involved core team members we receive a lot of feedback to improve our parachain (our features). It’s very challenging for every new protocol in also a very young ecosystem.

The proposal shared here is a great step towards a new chapter.
I follow the feedback from @Dennis that it’s good to make the buy-back process transparently. Share your buy-backs with the community, they will appreciate this. The data of dApp Staking is already on-chain available. I know how busy the team of Starlay is with development so it would be great that this is assigned to someone who can do this on a bi-weekly or monthly basis so it want be forgotten.

Could you clarify that you want to add $1M worth of liquidity to the already existing pool? Or create a liquidity pool of $1M worth of liquidity? Currently, the liquidity pool is around $330k.

I agree with @sota that option 2 will be the best way forward. Starlay Finance team lends LAY to Astar Treasury. Astar community will vote on the terms and we will provide the liquidity with a multi-sig.

5 Likes

I don’t like this idea, the fiat financial system is broken because of lending/borrowing and are we going to do the same in web3? If we need to support the project by treasury it’s better not to use lending/borrowing at all. Borrowing from the treasury is giving bad precedent for all ecosystem , also a questions from governments may follow, so I am against this initiative.

As I mentioned in this post, I don’t see the need to fund Astar’s Treasury for your liquidity.
There is no need to create unnecessary dependencies between the platform and the product, and you are raising $2M in a token sale to begin with. You should be able to provide liquidity from that within reason. Why on earth would you choose to borrow ASTRs from Astar’s Treasury?

6 Likes

Objectively, I can’t understand what you want to say here. The existing lending and borrowing systems are not broken and this is irrelevant to what Neo proposed.

I respect your opinion but I hope we can get a more productive conversation here.

3 Likes

Thanks for the proposal. This is a nice proposal to support your community. After a week long discussion, I am happy to know that you finally put a priority on what matters to your community.

However, I believe every business should try to be independent. Depending too much support from third parties does no good on a long term.

Like @you425 said, you have raised $2m and borrowing another xxx amount of money is not necessary.

You need to be able to develop and sustain the business with whatever resources you already have. I believe you can.

Less is more.

6 Likes

The money raised will be used to pursue the goals of the project and to benefit the whole Polkadot×Astar Ecosystem.

Last month Starlay exceed 300M TVL within a month since its release which was the Largest TVL in Polkadot Ecosystem. And are committed to do it better this time, much better.

One team for great UX

Starlay team is continuously developing DeFi protocols: Starlay, Kagla, and Muuu. Starlay is a money market where users can deposit/borrow their own assets with a variable interest rate based on the demand. Kagla is an AMM for stable-pair swapping. Muuu is a yield booster for the vote escrowed functions, initially supporting Kagla and Starlay.

Each protocol has its own tokenomics and a completely different UI, but the protocols influence and add values to each other. This mechanism will not only provide benefits to users but also will be a central position to activate the entire ecosystem.

Starlay team continues to develop new features. Its challenge is just the beginning, Starlay will gradually expand what they wanna try to realize. Starlay are gonna release challenging features on top of a promising chain.

We must support our Native lending platform. Thank you.

3 Likes

Hi @Dennis
I understand that you are strongly aligned with Starlay.

However, why do you say we must support Starlay?
I think it is safer to dismiss this proposal.
Given the current TVL, it is rather notorious that it has attracted the largest TVL in the Polkadot Ecosystem.
I don’t believe that Starlay have achieved anything other than successfully raising users’ expectations by APR and APY calculated from the illusion, 1LAY = $0.3.
If Starlay’s service is good and truly worthwhile, please explain to me why people have left.
I believe that it is because they thought Starlay were just deceiving people and raising money.
But if there is another concept, I would like to know.

Because the notoriety of Starlay may lead to the bad publicity of the Astar Ecosystem, I think you should carefully consider whether to help it, if you can’t theoretically explain why users are fleeing despite good service.

Hey @sota
What do you think about the danger that cooperation with Starlay will lead to a loss of trust in Astar and destroy the ecosystem?
It seems to me that if we allow the community to collapse due to loss of user trust, we would be out of step with the web3 concept.
Or don’t you care what happens according to the results of the vote about whether to help Starlay or not?

faa7685c263f0c4b8819a4c3044850cf

2 Likes

Thank you @AlexPromoTeam , @you425 , @moonme for the posts. At least from my point of view, understood the points.

Do you @nancheng , @Jin666 , @datcha , @polblancoo , @Lassi , @leonngo , @souleater mind if I ask you for opinions? As we received positive (or supportive) comments from you all in this thread.

1 Like

I support Neo’s this proposal. But one suggestion is that he should show the timeline for this decision process. Of course, we can’t make a proposal that will satisfy all LAY holders, so please move to vote and implement the proposal. I would like the team to move on to action soon.

3 Likes

Starlay, Kagla, Muuu are 3 important protocols in the Astar ecosystem.
Just because of their mistake in economic development has lost the trust of users.
Starlay is trying to regain users’ trust with practical actions.
And we should try to best support everything to develop.
“ALL THINGS ARE DIFFICULT BEFORE THEY ARE EASY!” - internet. :smiling_face:

3 Likes

Thank you for your comment @Maarten

I follow the feedback from @Dennis that it’s good to make the buy-back process transparently. Share your buy-backs with the community, they will appreciate this. The data of dApp Staking is already on-chain available. I know how busy the team of Starlay is with development so it would be great that this is assigned to someone who can do this on a bi-weekly or monthly basis so it want be forgotten.

Right. It might be a good idea to set a monthly operation date and time, and have a flow of reporting the results to the community after execution.

Could you clarify that you want to add $1M worth of liquidity to the already existing pool? Or create a liquidity pool of $1M worth of liquidity? Currently, the liquidity pool is around $330k.

We want to add $1M worth of liquidity to the already existing pool.

3 Likes

For the community, Astar should be expanded. For that, major applications on Astar should be expanded. As an IDO participant, supporting this.

2 Likes

As a launchpad participant, I support you guys.

1 Like

Supporting this. I believe there was some communication done between Astar and Starlay. Not only forcing App but also the community needs to commit.

1 Like

For developers to build more functionalities on LAY for all LAY holders, I think we need to accept this.

1 Like

Thank you @nancheng for the post below. Please let me share in this forum thread too.

1 Like