Astrovault - POL for Airdrop

[Eric]

Funding Request: $750,000 to bootstrap POL for 5% of AXV TGE

Changelog: after discussion several concessions have been made to update the on-chain prop, as shown here: Astrovault - POL for Airdrop - #65 by Eric

TL;DR: If this passes, we’ll airdrop 10M AXV to ARCH stakers and the AXV DAO will receive $750k worth of ARCH to use to bootstrap additional liquidity on the Archway chain. No ARCH will be sold. We’re trying to grow the Astrovault userbase, grow Archway liquidity through Astrovault, and more directly align the protocols and communities going forward.

Astrovault.io is an innovative AMM model that leverages an applicated security model where the protocol utilizes the collateral from the underlying staking derivatives to secure chains directly, and in turn utilize the staking rewards received to further grow liquidity. Many Layer 1’s have lost global liquidity due to alternative yield opportunities that have created competition with staking rewards, and further lost TVL as the little remaining liquidity is migrated off-chain to be serviced by a “hub". The liquidity services needed and utilities previously relied on have become more expensive, less secure, and often entirely unavailable.

Astrovault’s ability to monetize its liquidity enables the platform to allocate more resources to emissions for Liquidity Providers (LPs), revitalizing liquidity farming as a compelling alternative to staking while still preserving the security of the Layer 1 platforms. This is accomplished through the development of independent cross-chain infrastructure, meaning Astrovault provisions native infrastructure deployments to stake the underlying xAsset collateral, preserving liquidity on their chains as TVL. Simultaneously, these platforms seamlessly interact with pools on different chains.

This model not only saves participating Layer 1’s on the operational and maintenance costs associated with managing the chain but also encourages more on-chain activity for partner Layer 1 platforms and seamlessly interoperates within the interchain ecosystem, mutualistically catalyzing growth.

The AXV DAO will earn from the inflationary emissions of the Layer 1 assets the platform hosts. Therefore, Astrovault has significant incentive to help foster the growth of its clients’ decentralized businesses, recognizing that a decline in the value of their tokens directly impacts a corresponding section of the AXV DAO treasury. Essentially, the success of the clients and the platform are aligned — should a token’s value decline to zero, the associated section of the treasury would follow suit, negatively impacting the protocol. During our initial four months on Archway, we have been highly proactive in providing assistance to both Archway and our initial clients— offering our services across various areas including infrastructure provision, marketing, and business development. Our commitment to actively contribute remains and we look forward to continuing these efforts.

We operate on the principle of fair exchange and understand the value of reciprocity in business relationships. As a decentralized entity with the flexibility to establish a presence anywhere, our focus lies in strategically prioritizing where demand is most substantial. In alignment with our strategic objectives, we are seeking funding in the amount of $750,000. It is important to note that these funds will NOT be allocated for team compensation; rather, they will serve as Protocol Owned Liquidity, primarily residing within the Astrovault deployment on Archway to build further liquidity. In exchange, we will give 5% of our TGE as an airdrop to ARCH stakers with a whale cap. Whatever is unclaimed after 6 months will be reclaimed and split between the AXV DAO and the ARCH community pool.

Owning AXV will grant you ownership of the DAO and its treasury, a vehicle for organic treasury diversification (i.e. stake AXV to earn ATOM or any other Layer 1 your community chooses), and interchain governance power, as AXV will vote on ATOM, and all other supported Layer 1s. The AXV token will be deployed natively on each chain Astrovault builds on, but first on this initial iteration of Astrovault on Archway.

We have further resources and documentation on our protocol which I’ll add here, and the team is always happy to hop on public calls and live streams to discuss our offer, and address any questions or nuances. Additionally, please join our Telegram and Discord, we are readily available to answer any questions or concerns your community may have. There’s much more built and being added than we can put in this prop, from NFT integrations to gamified launchpads. We look forward to being long term partners with you, and to do our part to secure, develop, and grow the Cosmos Ecosystem!

Live Website: Astrovault

Whitepaper: https://astrovault.io/whitepaper

Time Flux paper: https://astrovault.io/whitepaper/tf

Econ Paper: https://astrovault.io/whitepaper/econ

Distribution Blog: AXV Distribution | Medium

Twitter: https://astrovault.io/twitter

Discord: Astrovault

Telegram: Telegram: Contact @axvdex

[ilo]

In favor of adding liquidity to the Archway ecosystem - it really needs to grow.

Also, Astrovault being a really well positioned protocol as well as Archway’s biggest dApp, this kind of liquidity and paired airdrop can really help bootstrap the general ecosystem.

Questions:

1. How will the TGE event take place?
   LBP - Lockdrop - … - This has impact on the liquidity projections.
2. How will the ARCH be deployed?
   Will the ARCH be converted into xARCH? Will it be split between regular and xARCH?
3. How will the ARCH be provided?
   Will the ARCH remain in control of the Archway Treasury and be paired with AXV in a dual-partner setup, or will the ARCH be send to a vesting account, or will it be provided on a trust basis?

Looking forward to hearing more!!

[Eric]

Thanks for the feedback and good questions!

1. Prior to the TGE we’ll do a gamified public sale on our own platform, Outbid, built into Astrovault. At the conclusion of the Outbid rounds, the Airdrop will be made live, the last filled public round will be made available, and AXV emissions will be turned on. There will be no extra steps other than claiming. No direct LBP or lockdrop, though we will seed liquidity at the ending price from Outbid.
2. ARCH will be deployed as needs are seen. Some will go to bootstrapping an xARCH-AXV pool which will be very important in eventual cross-chain routing. Otherwise we’ll use discretion as more partners want to list, and all deployments will be overseen and managed by the AXV DAO.
3. The ARCH provided will be owned by the AXV DAO. It will not be controlled by the Archway treasury. It will not be vested. The AXV provided in the airdrop will also not be vested, or controlled in some way by any Astrovault teams.

While some trust I suppose is required in that we will stay true to our word, we do also have quite the track record of honesty and delivering. We already have over $100k of POL without bootstrapping, proving how well the concept works. Now we’re ready to truly scale it and grow the pie.

[Phunky]

I’ll just start by stating my bias: I am an unabashed Astrovault fan and user of the dApp.

That said, the one thing I know holding back the dex from really getting more users and traction is the lower liquidity it possesses. Having read the new Econ paper from Astrovault, I believe this is a very fair trade that provides some skin in the game for the entire Archway community. The AXV token design is novel and should only add value to the broader Archway ecosystem and its community if provided 5% for the ARCH in trade.

Moreover, in conjunction with the Liquidity Council top up that will be forthcoming, this would add just over $1M in ARCH to Astrovault, and that liquidity should make for smooth trades with little to no slippage between various assets.

I will be voting AYE should this proposal move on-chain

[Rosaarchway]

Everything looks really great

[Swiss]

I have been thoroughly impressed by AXV’s industrious approach during this challenging bear market. The team’s superior execution is evident in their shipping of useful features that are 1) driven by sustainable economic incentives and 2) embedded within a seamless user experience. Moreover, their consistent adherence to their commitments shows a strong foundation of trustworthiness, leaving no reservations about Astrovault’s integrity and reliability, in my view.

With this in perspective, if market dynamics shift positively in the near term, the demand for the proposed liquidity on Archway could escalate significantly. In this case, the requested Archway liquidity will be even more sorely needed than that of today.

This rationale solidifies my endorsement of the proposal, and I would unequivocally cast a favorable vote should it progress to an on-chain decision.

[Archwale]

awesome ! we should accept that ! Hey governance ! Hear me !

[Krimzatom]

İ can say that it is the best proposal i have seen so far , we need this for ecosystem

[Leuiiandre]

A lot of effort has bern put into it , i support it

[H0lyF0lly]

Don’t take this the wrong way, but this feels like a no-brainer!

Astrovault seems to be the biggest presence for Archway in the Cosmos ecosystem, including social media. Their team have proven acumen in tokenomics and their plan to expand is solid. Archway has a chance to be the OG chain behind one of the most innovative dexes in Cosmos.

Let’s make sure we get this right.

Respectfully optimistic

[dan.iw3]

Astrovault has been doing an amazing job attracting interest to the Archway ecosystem with its unique AMM model and regular interventions on media platforms and conventions.

What they’re requesting seems fair and honestly a no-brainer for both Astrovault and the Archway Ecosystem, the upside potential is clear.

[Tritador]

Strong yes vote recommended.

Archway prides itself on supporting developers. Supporting Astrovault in this manner is a no-brainer extension of Archway’s developer-focused philosophy.

The crypto space (and the Cosmos/IBC ecosystem especially) has many legacy DEXes, or as I like to call them, “bull market” DEXes. When cryptocurrency is pumping, such as during a bull market, a legacy DEX can sustain itself by giving away large incentives to liquidity providers, these incentives typically competing with staking incentives, resulting in liquidity providers having to choose between securing the network via staking for a lower APR, or chasing the larger incentives from the DEX. These DEX incentives are typically in the form of an inflationary, DEX-specific token that typically only maintains price during bull market conditions and has minimal value outside of price speculation/trading/hype and governance (with governance mostly being decided by a handful of top validators making that value fairly moot).

Astrovault takes a different approach to this set of issues by staking (and growing) its liquidity tokens (thus securing the networks for which Astrovault holds liquidity) while allowing users to trade in derivative tokens, and allowing the (coming-soon) AXV token to have some backing in the form of protocol-owned liquidity and governance through that liquidity.

Astrovault’s existing competitors are legacy DEXes that are used primarily due to the large liquidity that was accrued during the last bull market. Providing Astrovault with large liquidity would place it on more even footing with the legacy DEXes.

It’s worth noting that outside of Astrovault, Archway does not have a large-liquidity in-network method of exchanging tokens. This is a lost opportunity for network fees and developer incentives for these exchanges when users opt to use higher-liquidity legacy DEXes. Due to the tedium of transferring tokens between networks, many users may also opt to retain their tokens on other networks, and developers may opt to build elsewhere. A convenient liquidity hub on Archway itself avoids the hassle of transferring tokens to another network to use a legacy DEX, swapping tokens, then transferring these tokens back to Archway – a poor user experience.

This proposal is a very easy yes-vote from my end.

[rubzcomms]

Will the LSD’s be eligible for this somehow.? or just the native stake $ARCH? This is great news to kickstart the activity on AstroVault for sure, Looking forward to a more Orange future

[Eric]

Great question, and we’re open to feedback! We’re open to keeping the LSDs in the airdrop if they’re open to working with us to distribute it to their end users?

@theconnnectooor what do you think fam?

[Mempoolini]

As an early Archway and Astrovault supporter, I will say AVX is a crucial part of the ecosystem, and I fully support this funding request for $750k. Airdropping tokens to the community that is already supporting Archway, will give a great positive impact to holders, and incentivize growth and activity on $ARCH.

100% supported! great job team

[ack]

I will vote yes .
Thanks

[drew]

Don’t understand why you need 3/4 of a million dollars in funding to airdrop a token you’re creating yourself.

I get that you want more protocol owned liquidity but don’t conflate that with token development and airdropping which are unrelated.

I am missing the point about why this increase in protocol owned liquidity is needed, and why the requested number is being given in dollars and not tokens.

[CryptoChem0000]

Seriously appreciate this well thought out and articulated explanation of your rationale for supporting this signaling prop. Cheers!

[Eric]

1. the idea of “a token you’re creating yourself” seems misingenuous. Various Archway organizations raised over $20M for a token they ‘created themselves’. At this time our application, fully bootstrapped, with no token, has earned over $120k proving out our model. Do we just keep the money? Do we keep the voting power? Our reasons for a token are FAR better than just about every model we’ve seen that could possibly use a token.
2. We are here declaring that the airdrop is indeed related. We don’t need the POL to exist and grow, as we’ve proven, but we grow much better and faster should we get it. We also don’t need to airdrop to ARCH stakers… but our community and distribution can grow much faster should it take place. We believe in decentralized business, and are offering this as an opportunity to ARCH stakers, but will move forward with our vision whether this passes or not.
3. We measure our revenue and treasury in USD terms, as we’ll service many, many clients. Though the greater the percentage of supply we’d have would be fantastic, it’s really about $ value, not tokens. It’s like accepting payments via venmo or zelle, what difference does it really make?

Thank you for the feedback! It IS important that this is understood as much as possible! Please read through some of our papers:

axv-whitepaper.pdf

axv-whitepaper-tf.pdf

and especially relevant here, astrovault.io/whitepaper/econ, which will better address how we format our emissions contingent upon things like liquidity, and showcase how having greater POL can lower our net inflation in downturns, ensuring our continued growth.

Lastly, again, this is not funding for any teams of Astrovault. No tokens are to be sold. The goal of this is to keep xARCH as the default base pair on Archway. If it doesn’t pass we’ll ONLY be able to offer AXV for this, which we still will! We’re committed to servicing Archway and this ecosystem regardless, as we’ve proven. But we ARE a decentralized business, and as such need to focus on where demand is greatest, and this proposal, in our opinion, does help to showcase that.

[Eric]

Thank you for this feedback!

Echoing here, that yes! Archway as a protocol monetizes its blockspace. If you look at Ethereum and other competitive L1s by on-chain volume, all of their top gas-users are DEXes. In order to grow the value of ARCH, Archway NEEDS a competent and strong DeFi ecosystem. My belief is that Astrovault offers this at not only an unparalleled bargain, but also as an unparalleled service.

If ARCH blocks are sufficiently filled, the entire network will be net-deflationary while still enabling staking rewards! THIS is the Archway we’re trying to make happen. And we believe that we can help Archway get there.