Disclaimer – I am a member of the TFL team.
As with prior interchain strategies, this proposal has the same objective: increase UST liquidity and utility across developing ecosystems. But this time is different. The Terra community has an opportunity to welcome a new IBC fren: Evmos.
Evmos is the EVM compatible hub of Cosmos, EVM-on-Cosmos, hence “Ev-mos.” It is an application-agnostic chain that will be interoperable with Ethereum mainnet, EVM-compatible environments, and other BFT chains via IBC. Evmos will by nature connect the Ethereum and Cosmos communities.
IBC EVM
As such, the Terra community ought to build long-term partnerships with applications across the ecosystem to ensure UST has deep liquidity and widespread adoption. Given the uncertainty in the early stages of a blockchain and its apps, the Terra community should seek to work with many protocols in a way that aligns long term interests and limits community spend exposure.
The Terra community should provide incentives to each of the following protocols, who plan to launch shortly after the Evmos mainnet launch. The incentives will last 2 months, with a condition whereby each protocol can earn more rewards as they drive more UST TVL to their respective projects. For example, a project will be granted a base amount in incentives to drive liquidity to their pools. If they reach a certain threshold in UST TVL, the community will grant them additional rewards to continue growing liquidity. If TVL tiers are not met, the rewards will be returned to the community pool.
Below is a list of each protocol and their respective incentives and liquidity.
Diffusion Finance is a Uniswap v2 fork AMM.
$250,000 of UST incentives
Exswap is a Uniswap v2 fork AMM. Soon after launch, they aim to ship a stableswap, lending, a liquidity balancer, and a launchpad.
$250,000 of UST incentives
Saddle Finance is a cross-chain stableswap protocol.
$160,000 of UST incentives
Kinesis is a native stableswap protocol. They use a multi-base pool model to support multiple bridges while using UST as the core routing gateway connecting all assets from each bridge.
$160,000 of UST incentives
Midas Capital is bringing Rari Capital’s Fuse pools to EVM compatible blockchains.
$160,000 of UST incentives, $2.5m in liquidity
Coslend is a money market lending protocol.
$160,000 of UST incentives, $2.5m in liquidity
Cronus Finance is a Uniswap v2 fork AMM.
$160,000 of UST incentives
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In summary:
Incentives: $3m UST
– Disbursed upon approval: $1.3m UST
– Conditional based on TVL performance: $1.7m UST
Liquidity: $5m UST
Total funds: $8m UST