Stellaswap is a decentralized exchange on Moonbeam, which is where most users in the Polkadot ecosystem are. They have a unique offering on Polkadot with a Uniswap v3-style concentrated liquidity dex. They want to use INTR tokens as incentives on their INTR-DOT pool for three months, which could be renewed. This will get the Interlay brand in front of more users and hopefully lead to conversions among new Polkadot users. The projected TVL in the Polkadot proposal did not account for any INTR rewards. The suggested token quantity has been suggested by Stellaswap, but could be adjusted based on community feedback.

Stellaswap <> Interlay Governance Proposal

Interlay is a platform that connects Bitcoin and other cryptocurrencies to DeFi. They have completed their expansion from BTC bridge to DeFi hub over the last few months. The end of the DeFi hub incentive program marks a good time to assess the INTR tokenomics and debate improvements and next steps. 

The goals of the INTR token are transaction fees, governance, liquidity bootstrapping, and feature access. To successfully navigate the current market and challenges faced by the ecosystem, the goal of a tokenomics update should be to keep LPs and vaults incentivized to provide capital to the bridge and DeFi hub, reduce sell pressure on the INTR token, and improve liquidity of the INTR token.

Three possible action items are identified, which help achieve the goals above. These include redirecting part of the INTR rewards for vaults, LPs, and lending supply to staking, depositing INTR into HydraDX’s Omnipool to improve liquidity, and removing token inflation to limit the total amount of INTR to 1bn.

LP rewards are coming to an end, and the community must decide on whether or not to prolong incentives at the current rates, cut the incentives down, or remove them altogether. The effect on the price, created by the selling pressure, is leveraged by the low liquidity of the token. 

If we want to maintain the DeFi hub and ensure there is sufficient liquidity for efficient trading and borrowing/lending, then we cannot completely remove LP rewards. One suggestion is to redirect 50% of the token emission currently distributed to vaults, LP, and lenders to INTR stakers.

Another suggestion is to deposit a considerable amount of INTR tokens to HydraDX’s Omnipool via treasury to increase liquidity. 

As the third action item, we would like to bring to discussion removing the planned inflation of INTR after year 4, effectively limiting the INTR supply to 1 bn.

Call for Discussion: Next Steps for INTR Tokenomics

- A proposal has been made to change the way rewards are given out for certain cryptocurrency transactions.
- They want to deposit a certain amount of INTR into HydraDX to create liquidity and stop paying incentives for a certain pool.
- They want to remove the 2% inflation after year 4 of the token launch to make INTR deflationary.
- They want to redirect 50% of the rewards for most parts of the transactions.
- The yield for certain transactions will change if this proposal is accepted.

Poll: Next Steps for INTR Tokenomics

Interlay is planning to launch a DeFi hub with a DEX, lending market, and bridge, and is seeking community feedback on the plan. The goal is to attract enough liquidity to ensure efficient usage of the DEX, lending market, bridge, and the highly anticipated iBTC staking product. To achieve this, the plan proposes incentivizing the lending markets and liquidity pools and ensuring sufficient supply of DOT into the lending market. The proposed parameters for qDOT and qUSDT as vault collateral are also provided. The DEX will focus on the iBTC/USDT, iBTC/DOT, and INTR/DOT pools, and the lending market will focus on the iBTC, USDT, and DOT markets. The proposed incentives for the DEX and lending markets would run for three months, and the target TVLs are $1.6m for the DEX and $1.4m for the lending market.

Interlay DeFi Hub Launch Discussion Post

1. RPC nodes are used to connect to networks like Interlay and Kintsugi.
2. Dwellir and OnFinality are providers of RPC nodes.
3. It's good to have two providers for redundancy.
4. The treasury should not overspend on RPC node provision.
5. OnFinality and Dwellir have shared their proposals for RPC node provision.

Future of RPC node providers

1. There are incentives for iBTC pairs in different Dexs paid in INTR.
2. The proposal is to provide INTR as liquidity in the Omnipool to access a large number of assets without the need to incentivize separate pools.
3. The Interlay community can manage the fees generated through governance, opening up different possibilities.
4. The Omnipool currently has 10 iBTC as liquidity, making it the best option in terms of slippage.
5. INTR could be used as an incentive in the Omnipool once Liquidity Mining is active and create a broader liquidity base.

Discussions