Stellaswap - ASTR Liquidity Incentives

Astar Network (Polkadot) Proposal
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Stellaswap <> Astar Governance Proposal

Abstract

This is a proposal for ASTR tokens to be used as incentives on StellaSwap’s ASTR-DOT pool, in conjunction with the 1 million DOT incentive that Stellaswap was recently awarded via Polkadot Governance. If accepted, this incentive program would run for three months, with the possibility of renewal if the Astar community would like.
Check out the referendum on Stellaswap’s DOT grant here
And read the proposal in detail here

Background on Stellaswap

Stellaswap is the leading dex on Moonbeam, capturing the majority of on-chain volume. We have a Uniswap v3-style concentrated liquidity dex (running on the Algebra engine) which constitutes a unique offering on Polkadot. Our capital efficiency is many times higher than a standard dex, allowing much larger trades to be made on the same TVL without compromising on slippage. We generally have a utilization rate 20-100% on most of our pools, while a standard dex is going to be more like 5%.
Our dex calculates swap fees automatically - no need for LPs to guess what fee tier to use. And we’ve got an integration with Gamma to provide automated liquidity management on many of our top pools, which if this passes could include ASTR.
Note that as of this writing Gamma support is only available for one pool, but will be integrated in all of our largest pools by the time we receive our DOT incentives, in about two weeks.

The Advantages of ASTR on Stellaswap

Simply put, Moonbeam is where most of the users in the Polkadot ecosystem are. It’s often where they arrive first from the EVM world, and Stellaswap is the biggest dex in that space. A healthy ASTR pool on Stella will get the Astar brand in front of more users, and will hopefully lead to conversions among new Polkadot users.
With Stellaswap on track to receive significant DOT incentives there will be more attention than usual, and this is a great opportunity to push for a higher profile for Astar.

Something we’ve done in the past, if you look at our pools page specifically at iBTC and CFG, we put links to those project pages right on the pool. For users new to the Polkadot space, who are learning about parachains for the first time looking at our list of incentivized pools, we want folks clicking that link and getting excited as they learn more. And we would do this for Astar as well.

Incentives and Projections

Note - Stella and DOT incentive numbers are from the Polkadot Governance Proposal linked in the Abstract, and reflect a 12 month period. The ASTR numbers are for a 3 month term, that could be renewed.
Note also that the projected TVL in the Polkadot proposal did not account for any ASTR rewards.
Finally, the suggested dollar value is aligned to what Acala is offering on their ACA-DOT pool. Based on community feedback to this proposal the number or the duration could always be adjusted.

ASTR-DOT

Target TVL (again, based on DOT + Stella incentives only) - $300k
Note that this level of TVL would allow for significantly less slippage than an equivalent TVL on a non-concentrated dex.

Asset Amount Period
DOT 2000 12 Months
Stella 49112 12 Months
ASTR 30612 3 Months

Closing Thoughts

We look forward to working more closely with Astar moving forward, and we’re excited to involve ASTR in this unprecedented incentive program from Polkadot. Please don’t hesitate to share your thoughts in this forum, or to head over to Stellaswap’s discord channel to ask questions. You can find Stellaswap at StellaSwap - Leading Moonbeam DEX & DeFi Gateway

Our Wallet Address: 0x4300e09284e3bB4d9044DdAB31EfAF5f3301DABa
(If a substrate wallet address is required, please let us know and one can be provided)

6 Likes
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Thank you for your proposal!
I’m in favor of this proposal. Participating in Stellaswap’s incentive program is expected to increase ASTR’s trading volume and acquire new users. Actively using the treasury in such opportunities will contribute to Astar’s growth.

2 Likes
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Thank you for your proposal.
I have a few points I would like to clarify about the benefits of Astar. The following part is very interesting. Do you have any evidence or background for this?
I would appreciate it if you could share any data-backed analysis results you may have, rather than just a hunch, to the extent possible.
Additionally, I have confirmed on DefiLama that StellaSwap is the largest Dex on Moonbeam.

Simply put, Moonbeam is where most of the users in the Polkadot ecosystem are. It’s often where they arrive first from the EVM world, and Stellaswap is the biggest dex in that space.

1 Like
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This looks like a great collaboration. Could I please ask a few more questions?

  1. How is the performance on Moonbeam?

  2. Is there anything you’d like to fix on Moonbeam that you’re able to do on Aster Network?

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Hi, that’s a good question! In terms of moonbeam performance, it’s generally quite good with modest gas fees, though of course that varies with network traffic.

But overall I think the biggest challenge facing moonbeam is the same challenge all parachains are experiencing: the ux of interacting with assethub. I believe parity is working to improve things and create a cleaner flow for onboarding stablecoins into the Polkadot ecosystem.

In the meantime though, in addition to native stables we support wormhole assets from Ethereum (though we will transfer that support to polkadot’s native Snowbridge when that’s available), and leverage Axelar 's cross chain swaps to conveniently move money around.

1 Like
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Hi, I think you’re asking for my source for claiming that moonbeam has the most users of any parachain.

Here’s a post from polkadot insider with some numbers.

Keep in mind I don’t say that to disparage astar, and astar’s number there wouldn’t include the zkevm.

And actually, referencing the part of my proposal where I suggest adding a link to Astar’s pool on stellaswap, it could be a great way to create awareness, given that the zkevm is such a new product.

1 Like
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The amount requested is very reasonable and be able to work with another parachain Dex within the Polkadot eco-system reinforce Astar’s commitment to Dot eco (at least in public view). I definitely support this proposal since amount requested is very small and help us with liquidity in Dot eco.

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Hi I agree with some comments, I think it would be beneficial if more users from the Polkadot ecosystem come to Astar. And I think this would be a good collaboration to do so. I hope the response will be positive for it to happen.

Also the proposal that it can be tested for three months seems prudent to me, things can be corrected for a possible renewal.

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Woww!!! Thank you a lot for your information. I’m so exciting about this collaboration =)

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This proposal to integrate ASTR tokens into the StellaSwap ASTR-DOT pool appears promising and could significantly boost Astar’s visibility in the Polkadot ecosystem. It’s crucial to closely monitor and evaluate the program’s impact after the initial three-month period to ensure it meets its objectives and to decide on its potential extension.

1 Like
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I have used StellaSwap a lot before and really like it. Performance was great aswell. Would love to see Astar on it.

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Hi Stellaswap team,

glad to see your proposal here on the forum. And congratulations on the DOT incentive on your DEX. I have a good experience on Stellaswap as you have the “Swap for Gas” feature for those who do not own GLMR.

I am wondering what were the reasons/evidences behind the target TVL of 300k eventually. And curious if you have any outcomes expected from this.

On top of it, then it would be great to see the comparison before and after having the pool deepened if the proposal gets accepted.

Bests,
pithecus

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Hello Stellaswap team!

Interesting proposal. I’ve used Stellaswap in the past and I like your UX. It’s very smooth.

As for the proposal, I have a few concerns that I’d like you to address:

  1. Looking at your DEX, I understand that the ASTR-DOT pair doesn’t yet exist. If this is the case, who would allocate the initial liquidity to launch the pool?

Given that we’re focusing our growth on our ecosystem and Astar zkEVM and that the ASTR token is already listed in the Omnipool on HydraDEX with nearly $1M in liquidity.

  1. What’s the benefit for the Astar Ecosystem to list and incentivize ASTR tokens on Stellaswap on Moonbeam?

We wouldn’t want this ASTR allocation to benefit only Defi farmers on Stellaswap for short-term gain.

  1. What’s your marketing and communications strategy to increase Astar’s visibility within the Moonbeam community and convert users into ASTR holders?
3 Likes
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There is a pool in stella alreay, under community pool and volumn seems ok with current tvl.

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Incentive of $Astr is so low, not sure what your true concern is since we were willing to providing $1M for Hydradx for LP and this proposal is requesting less than $4K in 3 months. If someone has a decent position in Glmr/Dot and wants to convert to Astr, it’s not possible using Stellaswap since the liquidity is too low. Hopefully this incentive will change that.

The question of $300K for TVL does merit some questions as to how to achieve this number.

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Thank you @JCFishing for the additional information.

I haven’t looked at the community pools tab tbh.

Since the pool already exists with good volume for its size and given the amount requested, I am in favor of this proposal.

The question about the $300,000 TVL remains pertinent.

2 Likes
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Hi @ogre44444
I like StellaSwap and I regularly used it but I am not a big fan of liquidity mining except to boostrap a new ecosystem. Moonbeam is not new and I don’t think these ASTR tokens will be beneficial to the Astar Ecosystem. If we should do a liquidity mining I will pefer to see it in Astar ZkEVM. Sorry I will vote NO.

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Thanks for the suggestion. I am one of the users who often use Stellaswap on Moonbeam. I am glad to see you on this forum.

But to be honest, I don’t really feel that Astar will be benefited by this proposal.
I don’t see a future in which users will be active in the Astar ecosystem once they are able to farm with DOT-ASTR pairs.

It would have been a different story if you could use XCM to provide cross-chain swaps and cross-chain liquidity… but as it stands, the return to Astar seems low.

I don’t see a problem in terms of the amount requested, but there seems to be little evidence that it would be a positive for Astar.

1 Like
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Remember that Stellaswap has requested and been granted significant dot rewards from the polkadot Treasury.

The projected tvl numbers are from that.

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As I mentioned to another user, the 300k tvl projection is based strictly on the dot and stella portion of the incentives, which we are providing.

As for comparison/performance metrics, absolutely. In three months when I come back to ask if you’d like to renew this proposal those are exactly the sorts of things I’d present.

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Hi @Gaius_sama , going through your points one by one

1 - It looks like another user already identified Astar on our Community Pools page
2 - The benefit is exposure. If you scroll up I included a statistic from Polkadot Insider showing Total Active Accounts per parachain. Moonbeam gets the most traffic by far, and putting the Astar token on the featured pools page (rather than a community pool) of the most trafficked dex on that network will bring eyes to Astar
3 - We’re working with all of our partners to create awareness, though discord, twitter, etc and we’re open to ideas. I mentioned in the proposal adding a link to the astar pool page, so that users can go from Curiosity to Converts more easily.