[APPROVED] [PROPOSAL #13] Establish Strategic Collaboration with Astroport via Mutual Token Grants

Summary

  • Astroport Assembly to grant the Neutron DAO 5% of ASTRO supply
  • Neutron DAO to grant the Astroport Protocol Foundation an equivalent amount of NTRN based on 5% of ASTRO using a 30-day TWAP (collared to a maximum of 0.5% of NTRN supply and a minimum of 0.3% of NTRN supply)
  • Astroport Assembly to grant the Neutron foundation 1% of ASTRO supply, intended to help fund NTRN liquidity incentives to one or more key Astroport pools
  • Astroport to move hub to Neutron
  • Astroport to release vxASTRO and bribes on Neutron
  • Offchain commitments involved in the proposal to be memorialised in agreement between Neutron Foundation and Astroport Protocol Foundation

Introduction

Neutron aims to establish itself as the “ATOM economic zone” by driving liquidity from around the Cosmos and beyond it into ICS Chains. As part of this, it seeks to become the Cosmos DeFi and liquidity hub, as well as the home for Cosmos multi-chain projects.

The AMM is a key primitive for any DeFi chain, enabling on-chain liquidity and price discovery. Astroport is currently the 2nd largest AMM in Cosmos, and the largest AMM on every chain it’s deployed on (Terra, Injective, Neutron, and Sei). Astroport has a strong focus on efficient passive liquidity provision via its innovative pool types such as Passive Concentrated Liquidity which enables ~2-3x greater capital efficiency compared to xy=k, thus making it ideal for a DeFi and liquidity hub. Alongside Duality and Neutron, Astroport also recently shared a vision for an aggregated liquidity book via integration with Duality’s liquidity book.

Neutron aims to be the hub for multichain Cosmos projects. Astroport’s hub-and-outpost design is perhaps the exemplar of a multichain Cosmos project, with successful outposts deployed on 4 chains so far. As more new chains launch, Astroport can continue to deploy outposts and become the go-to AMM and passive liquidity nexus of Cosmos.

As the Cosmos ecosystem succeeds in attracting liquidity and users, Astroport generates significant fees on its various outposts which will flow to Astroport’s ‘hub’ – i.e, the flagship chain where the Astral Assembly (Astroport’s governance contracts) are deployed. The Astral Assembly governs Astroport’s flagship AMM system on the Hub as well as all Astroport AMMs on other chains–including by directing the flow of incentives from outposts back to the hub.

The Proposal

Given the clear synergies between Astroport and Neutron, we propose a deeper strategic collaboration between the two communities.

Astroport would move its hub to Neutron, launching vxASTRO and a generalised Curve-style ‘bribes’ protocol on top. To align incentives & give the Neutron community a strong voice in Astroport’s governance (including the upcoming “ASTRO Wars II”), the two communities would also engage in mutual grants of ASTRO and NTRN to one another.

Neutron <> Astroport Specifics

Astroport proposes to move its governance hub to Neutron. This entails:

  • migrating the ASTRO token from a CW-20 native standard to a Cosmos Token Factory standard; and
  • migrating Astroport’s governance smart contracts (the Astral Assembly) to Neutron.

As a result, Neutron would become Astroport’s ‘hub’ and all system fees from both the Astroport AMM on Neutron and Astroport AMMs on all other chains would flow to the Astral Assembly on Neutron.

After the hub is moved, Astroport will release its long awaited vxASTRO implementation along with an accompanying Curve-style ‘bribes’ marketplace to its hub on Neutron. As we saw with the “ASTRO Wars” on Astroport’s initial implementation on Terra, many chains and projects would likely look to acquire ASTRO tokens in order to influence incentives–sparking off “ASTRO Wars II” in the broader Cosmos ecosystem.

Given Neutron’s position as not just Astroport’s hub but also a hub for Cosmos liquidity, it would be beneficial for the Neutron community to have a large ASTRO stake and thus a large say in Astroport’s governance. In this manner, the Neutron community would also establish an early lead in ASTRO Wars II. This allows Neutron to influence incentives which can be used to ensure liquidity remains on Neutron for key tokens and act as a carrot to attract new projects to launch on Neutron.

Astroport benefits greatly from any liquidity that Neutron attracts, and given Neutron is likely to invest significant NTRN in attracting wstETH and other assets, it also makes sense that Neutron has significant ownership of ASTRO such that it benefits from the results of these efforts.

Thus, in addition to moving the hub we also propose parallel NTRN and ASTRO grants, as follows:

  • the Astral Assembly would donate 5% of ASTRO (funded from the ASTRO ‘community pool’ controlled by the Astral Assembly) to the Neutron DAO (intended to be held long-term and staked in the Astral Assembly);
  • the Neutron DAO would donate to the Astroport Protocol Foundation an amount of NTRN equivalent in value to 5% of ASTRO; this NTRN would be intended to help fund Astroport hub migration, the implementation of vxASTRO and Curve-style ‘bribes,’ and miscellaneous post-migration operations of the Astroport Protocol Foundation
  • the value of NTRN for purposes of calculating the donation amount would be calculated as follows:
    • time-weighted average prices (TWAP) of NTRN over the 30 days preceding the final onchain proposal for the transactions contemplated in this signalling proposal, using CoinGecko daily price levels as of 11:59pm UTC each day during the period
    • the TWAP would be ‘collared’ so that the maximum amount of NTRN payable for 5% of ASTRO is 0.5% of NTRN supply and the minimum amount of NTRN payable for 5% of ASTRO is 0.3% of NTRN supply
  • the Astral Assembly would donate an additional 1% of ASTRO (funded from the ASTRO ‘community pool’ controlled by the Astral Assembly) to the Neutron Foundation (intended to help fund liquidity incentives for key Astroport pools such as the wstETH pool);

Note: the exact amount of NTRN will be specified in the final binding onchain proposal, based on the above formula.

As a result, the Neutron community collectively would own 6% of ASTRO and the Astroport and Neutron communities would be long-term aligned and deeply synergistic.

All of the above transactions would be cross-conditional. The token donations would occur first, to be followed promptly by Astral Assembly migration and implementation of vxASTRO and ‘bribes’. To ensure migration and vxASTRO/bribes completion actually occurs after the token grants, the Astroport Protocol Foundation would enter into contractual commitments with the Neutron Foundation prior to effectuation of the token grants. The Astroport Protocol Foundation would also covenant that any sales of its NTRN will be conducted OTC, while the Neutron Foundation would covenant to provide certain liquidity incentives to one or more key Astroport pools and that any sales of its ASTRO will be conducted OTC.

This is an omnibus signalling proposal being simultaneously shared on the Neutron and Astroport governance forums. Implementation of the plan may require one or more sub-proposals to be made to each DAO for binding onchain governance approval as well as off-chain agreements by the Neutron Foundation and/or Astroport Protocol Foundation.

DISCLAIMERS/DISCLOSURES

This proposal is being made in whole or in part by or on behalf of or with the participation of Delphi Labs Ltd., a British Virgin Islands limited company. Delphi Labs engages in incubation, investment, research and development relevant to multiple ecosystems and protocols, including Astroport Protocol and Mars Protocol. Delphi Labs and certain of its service providers and equity holders own ASTRO tokens and have financial interests related to this proposal. Additionally, Delphi Labs is one of several entities associated with one another under the “Delphi Digital” brand. Delphi Digital’s associated entities and/or equityholders or service providers of such entities may hold ASTRO and may have financial interests related to this proposal. All such entities, service providers, equity holders and other related persons may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including Neutron/NTRN. More specifically:

** Delphi Ventures invested in NTRN-token-related contract rights in a venture financing round related to Neutron.*
** One of the P2P group companies incubated Neutron Protocol and an affiliate of that entity is also an investor and shareholder in Delphi Labs.*

These statements are intended to disclose relevant facts and to help identify potential conflicts of interest, and should not be misconstrued as a complete description of all relevant interests or conflicts of interests; nor should they be construed as a recommendation to purchase or acquire any token, asset or instrument.

This proposal is also subject to and qualified by the Astroport Disclaimers/Disclosures. Delphi Labs may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Delphi Labs is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Delphi Labs shall have no liability in the event of losses or damages ensuing from approval or rejection or other handling of the proposal. Each user and voter should undertake their own research and make their own independent interpretation and analysis of all relevant facts and issues to arrive at their own personal determinations of how to vote on the proposal.

5 Likes

Great to see Astroport coming to Neutron!

Couple of questions:

The Astroport Protocol Foundation would also covenant that any sales of its NTRN will be conducted OTC, while the Neutron Foundation would covenant to provide certain liquidity incentives to one or more key Astroport pools

How much NTRN will be sold for grants?
How much ASTRO is expected to be used as incentives?

The answer to both questions is crucial for the community to consider if this is a fair deal.

Also for reference since this proposal doesn’t include this:
ASTRO to be given to NTRN in total (6% supply) around 66,000,000 or ~$1.6M.
NTRN to be given to ASTRO in total to match ~400,000 or ~$1.6M

Think a key difference is that ASTRO has dropped 50% in the last month (ignoring the miraculous 26% pump 2 days ago), so there should also be a risk factor included in this proposal of at least 30% in my opinion, otherwise it makes no economic sense for neutron. Even then it is risky but having Astroport migrate to Neutron is also a huge benefit for the chain.

Hello,

How does it position duality in this deal?

As a $ntrn token holder, Is there a vesting and/or with cliff on this token grant ? i dont want to have a % of NTRN release so fast.

Actually astroport holder might have less liquidity and more circulating supply. Neutron the opposite more liquidity and low supply. We can see that astro drop -50% (from release token from vesting?). How does benefit neutron to get a illiquid token?

The above mentioned 30 day TWAP window has closed now giving final amounts to be used in the onchain proposal as follows.

  • ASTRO: $0.0229021544460507
  • NTRN: $0.32793066373401

Thus the amount of NTRN equivalent to 5% of ASTRO and used in the onchain message of this proposal is 3,841,112.26 NTRN

The multisig of the Astroport Protocol Foundation has also been created with the intention of receiving these funds and has address neutron1jwfqpn6rd5yjp2ms7a4szg2frtp5qdfk4yr9rh

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Hey luisqa

The intention is to sell the NTRN to compensate for Astroport’s initiatives on Neutron (moving the hub to Neutron, vxASTRO, other misc. development governed from the Neutron hub, etc.). I and other team members have allocations of NTRN as does a fund we are connected with Delphi Ventures so we feel we are aligned with you on not do so in a way that harms the project.

As for the ASTRO it’s up to you - i.e. the DAO - what to do with the ASTRO. I would expect it to be used to give Neutron a strong voice in Astroport’s governance as mentioned in this proposal. But have no particular control over this beyond my NTRN stake in governance.

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