StellaSwap Incentive Program
Proponent Address: 126AevKcm3RXJazGQWKYwtRvpjMmCBGV5W6LWeWLEc17YQ2n
Requested Amount: 1M DOT
Short Description: A continuation of our liquidity incentive program on Polkadot to maintain and deepen market liquidity for the ecosystem, covering our pools as well as working with key partners as distribution points.
Summary
Deep liquidity is the cornerstone of a vibrant ecosystem. The continuation of Polkadot’s liquidity incentive campaign on StellaSwap is vital in ensuring that we can effectively attract and retain users, projects and usecases to further grow the ecosystem.
As one the leading DEXs on Polkadot, we strongly believe that we can continue to spearhead ecosystem growth. Our track record from the first liquidity incentive campaign highlights the net benefits for the ecosystem and we believe that a continuation would allow us to maintain the market depth we’ve established and hopefully break new ground.
We have outlined a comprehensive proposal that will explicate the program in further detail.
- Primary Goal: Maintain and Grow DeFi Activity (active users, transactions, TVL) on Polkadot
- Project Description: StellaSwap is a highly-efficient, V4 CL-AMM DEX powered by VE 3,3+ to facilitate the most optimal price discovery for assets on Polkadot
- Requested DOT Grant Amount: 1M DOT
- Use of Grant: The ecosystem grant will be used to maintain & grow the market depth of strategic & native assets for widespread utility across the Polkadot ecosystem.
Motivation for Grant Amount: Liquidity depth is a necessary requirement for a robust and efficient marketplace that powers the ecosystem. StellaSwap accounts for the highest trading volume in Polkadot - standing at a cumulative volume of over $2.2 Billion - and DOT grants will foster much deeper liquidity for users and help accelerate the DeFi flywheel effect by increasing network activity and exposure.
Comments (4)
Many people on the ecosystem are worried about the current price action of DOT, despite all the advances, the tech alone isn't increasing the price valuation of the DOT token, we need to incentivise DeFi initiatives to promote liquidity into the ecosystem, liquidity is the blood of Blockchains.
Many people say Polkadot is a ghost chain because of the low usage activity and investors take this very much into account, StellaSwap changes that, I have personally used both Hydration and StellaSwap and both complement each other perfectly, liquidity isn't fragmented like in other ecosystems, you can take collateralized loans on Hydration to acquire tokens and then use them to provide liquidity on StellaSwap and later you can use the xcDOT rewards that you earned to get more collateralized loans on Hydration and both DEXes complement each other perfectly and are important for the ecosystem. While Hydration uses the omnipool liquid providing method, StellaSwap uses the concentrated liquidity uniswap v4 like method, this diversity of methods are great tools for the users who provide liquidity and want to use them with different strategies and under different circumstances.
We need to support DeFi usage on Polkadot if it is meant to survive. Tech alone won't bring the numbers, DeFi will help with that as it is proven in the success of Ethereum and Solana. 54% of DOT tokens are currently used for staking while 45% rest iddle, less than 1% are used in DeFi, supporting DeFi will help to bring up those numbers and build towards a future DOT aligned economy. StellaSwap has done a great job at capturing DOT with more than 2 million DOTs captured on its liquidity pools.
My support goes to this initiative since it is an important element of the Polkadot ecosystem, the only downside is the lack of integration with other tokens in the ecosystem for example the lack of a liquid staking derivative for Kusama as well as Kusama pools, addressing this issue would help strengthen the ecosystem.
@13AwhP88RjKzy1VcNC1ASJA95bM1dPxHbjhBca66jph5tdZS Stellaswap is an incompetent team, We should focus the reward on big names like AAVE, Uniswap, Lido,.. on the Polkadot hub and native strong team like Hydration, Bifrost, Hyperbridge.
Past Performance
OGT Review
The campaign started with a ~5 month delay on 11.09.2024, as the team was waiting for the BEEFY integration.
Treasury funds were received on 18.04.24.
During that delay the team staked a portion of the received DOT (around 700K DOT) from the StellaSwap multisig to the staking pool that issues stDOT.
Since it was clearly stated in the proposal that under no circumstances the received grant will be allocated for another use, we reached out once again to the team for further input so we could better understand the reasons behind this activity.
This use of the funds can be considered acceptable and understandable from our side as long as the team provides all the necessary information that justify the above claims.
Specifically, we requested a detailed breakdown of:
The team told us that they will provide an in-depth overview about the campaign and the points we raised during their new proposal submission.
However, we are unable to locate any of this important information or a related update on that front in the shared proposal documentation.
We would much appreciate if you could elaborate further on the matter or redirect us towards the expected report.
Thank you in advance.
Past Performance is our second experimental approach, after OGT Rating, to target pre-approval practices and help voters make better informed decisions.
We share our findings and further insights about the previous proposer's work and its overall status.