Implement a Community-Driven Liquidity Mining Program for ASASTATS Token

[wxivd]

Objective:
To enhance the liquidity of ASASTATS token pairs through a community-led initiative that incentivizes participation and fosters inclusivity.

Proposed Structure:

1. Incentives:
   Offer ASASTATS tokens and exclusive benefits as rewards to users who provide liquidity to designated pools.

2. Reward System:
   LPs contributing a minimum of $500 equivalent in liquidity receive a 5% annual percentage yield (APY) in ASASTATS tokens.

3. Exclusive Benefits:
   AsaStarter Access: LPs gain complimentary access to ASA Stats’ premium services, including API v2 and user bundle functionality.

4. Program Duration:
   The program will run for an initial period of 12 months, with quarterly evaluations to assess performance and make necessary adjustments.

5. LP Pair Selection:
   Pairs will be chosen based on community votes and approved by the ASA Stats Team.
   Examples:

• ASASTATS / USDC
• ASASTATS / TALGO
• ASASTATS / TINY

6. Threshold for LP Pool Creation:
   Aiming for a combined total liquidity of $10,000 to $20,000 for a Functional LP Pair
   Gage participation with following guides

• A minimum of 15 participants is required to initiate an LP pair, 1000USD each
• A minimum of 30 participants is required to initiate an LP pair, 500USD each

Rationale:

• Inclusivity: Lowering the minimum contribution to $500 allows broader community participation.
• Functional Liquidity Pools: Targeting a combined liquidity of $10,000 to $20,000 ensures reduced slippage and the ability to execute larger trades without significant price deviations, thereby enhancing trust and trading efficiency.

Considerations:

• Participant Verification: Implement measures to ensure genuine participation and prevent gaming of the system through multiple wallets.
• Community Engagement: Encourage active community involvement in decision-making processes, fostering a sense of ownership and collaboration.

[AlgoRhythMatic]

Aiming for a combined total liquidity of $10,000 to $20,000 for a Functional LP Pair
Gage participation with following guides

This statement stands out to me, so just wanted to comment on it a bit.

Some thoughts to consider:

• let's consider the math of outstanding supply of ASASTATS vs. USD TVL as of 1/15/24.
• Given LP-based valuations per ASA Stats measurements, I believe we can derive some theoretical value of ALL outstanding supply, were to be added to LP
• What would would be the value of total theoretical limit of ALL outstanding supply being incorporated into LP to understand what measurements we should utilize (if any) for minimum pool TVL to qualify?

My quick takeaway: we may need to reduce TVL requirement much lower to ~5k or so USD, based on limitation on current theoretical value of full outstanding supply + price fluctuations. Conversely, we may wish to strike it from qualifications altogether.

[wxivd]

Aggregate ASA/USDC pools for an overview https://vestige.fi/asset/31566704

we may need to reduce TVL requirement much lower to ~5k or so USD

ASASTATS / USDC
Less fluctuation compared to other ASA/ASASTATS pairs. Maybe lower threshold to 5K USD TVL requirement.

Keep 10K USD TVL requirement for pool creation to other ASA/ASASTATS.

[AlgoRhythMatic]

This Vestige view of ASASTATS is helpful for comparing the Stable TVL (~96.2K) against the FDMC (~202K) and to understand that the circulating supply is 84.5%.

My point re: reducing required minimum TVL: with a total liquidity TVL already at ~96K USD, and a circulating supply valued at ~170K, I believe we need to be realistic about the volume of passive supply that people will be willing to add to various LPs, and what best results look like.

Assuming we could convince ALL outstanding ASASTATS holders to farm an additional 25% of their dry stack into LP, that would still only amount to an additional ~18.5k TVL added.

[AlgoRhythMatic]

As a followup to this, I have a slightly controversial plan for March's TM cycle 8:

• This cycle, we now have 8 gov votes that should increase APR on the TALGO/ASASTATS pool for TM Cycle 7. Main point is just that there are several more votes than initial cycle, so we see that others can/will support this pool.
• I've observed that there is still ~5k TVL in a much smaller ALGO/ASASTATS TM pool, and am considering voting for this pool with 100% of my Tiny Power for cycle 8.
• The controversial part: I will wait for other votes to first lock on existing pool before then voting on ALGO/ASASTATS pool
• Since vote occurs on 18-27th of month, I will leave my liquidity in place on existing pool until March 1st.
• If all goes to plan, I will then move my liquidity from TALGO/ASASTATS > ALGO/ASASTATS, which should have the effect of diversifying two larger pools in 3:4 ratio (ALGO-based:TALGO-based).
• Then, we sit back and watch to see if other liquidity moves, or if people prefer keeping TALGO, etc.
• Ideal "worst" case: all liquidity moves from TALGO > ALGO-based pool
• True "worst" case: liquidity leaves due to frustration or due to wishing to hold TALGO, but not seeing enough reward for the TALGO/ASASTATS pool.

[AlgoRhythMatic]

I'm not 100% set on this plan, but will socialize it a bit more in Discord ahead of next month's voting period. The main reason I am considering it: the little 5K pool often sees more daily trading than the big 30k pool, so there may be more useful utility having a larger TVL there to add stability and lower costs. I know this topic diverges a bit from the point of this conversation, but the thoughts feel topical to goal of getting to multiple >10k LPs. I am very much against shit-coin pairings for anything besides profiteering, so will ignore any suggestions towards that case - I think we should only consider stable, ALGO or ALGO-liquid pairings.

[ipaleka]

Whatever we decide to do, my stance is that we shouldn't use our in-house script for the rewards allocation.

If the pool is on Tinyman, we should use our Tiny governance power to create a Tinyman farm and allocate rewards that way.

If the pool is on Pact, we'll use a Pact farm for the rewards.

If we fail to create a farm on Tinyman, we'll create one on Cometa.

[AlgoRhythMatic]

If the pool is on Tinyman, we should use our Tiny governance power to create a Tinyman farm and allocate rewards that way.

Did ASA Stats used their Tiny Power last cycle to vote for TALGO/ASASTATS? If not, now would be the time to request support for this action, as next vote for Cycle 7 (February rewards) begins tomorrow!

https://app.tinyman.org/governance/farming

Edit: as an alternative to just voting for this singlar farm, perhaps we could have some vote to target TALGO/ASASTATS (~30k TVL) or ALGO/ASASTATS (~5k TVL).

[ipaleka]

If the pool is on Tinyman, we should use our Tiny governance power to create a Tinyman farm and allocate rewards that way.

Did ASA Stats used their Tiny Power last cycle to vote for TALGO/ASASTATS? If not, now would be the time to request support for this action, as next vote for Cycle 7 (February rewards) begins tomorrow!

I meant on community Tiny governance power, tbh.

Our devpool has got some 2K Tiny and that hasn't been committed. Do you think such a an amount is worth committing?

[AlgoRhythMatic]

Do you think such a an amount is worth committing?

It couldn't hurt - it compounds at rate of ~99% at moment, but requires locking, etc. I guess if there were no other plans for them. We definitely have a few gov votes with accounts that have similar amount for TALGO/ASASTATS pool this cycle, so every vote counts.