# GP12 DeFi Rewards (TDR) Proposal - CompX **URL:** \ **Category:** Rewards Proposals\ **Tags:** targeted-defi-reward\ **Created:** [April 30, 2024, 9:55am UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906 "2024-04-30T09:55:20Z")\ **Posts on this page:** 20\ **Page:** 2
**Author:** ![Richflairstv](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/richflairstv/32/2405_2.png) [@Richflairstv](https://forum.algorand.co/u/Richflairstv)\ **Post date:** [May 6, 2024, 8:19pm UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/21 "2024-05-06T20:19:10Z")
Awesome. I’m excited for the merger and see how things go from there. Are you just one person or is there more of a team? ---
**Author:** ![Richflairstv](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/richflairstv/32/2405_2.png) [@Richflairstv](https://forum.algorand.co/u/Richflairstv)\ **Post date:** [May 6, 2024, 8:20pm UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/22 "2024-05-06T20:20:22Z")
Strong community is so important. I believe it’s lacking from all defi platforms as people think money will just fall into their laps. Algorand is tribal and you can’t depend on that. ---
**Author:** ![Xxiled](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/xxiled/32/3111_2.png) [@Xxiled](https://forum.algorand.co/u/Xxiled)\ **Post date:** [May 6, 2024, 8:28pm UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/23 "2024-05-06T20:28:58Z")
The CompX team is primarily myself and Nimi (formally of xBacked) but we also have input from individuals across the Optio group of projects. CompX decisions are 100% ours but it’s great to be able to get those other perspectives. Of course, I’d be remiss to not include our wider community team of the CompX Initiative headed up by the one and only @dashawn.algo. He’s our MVP! ---
**Author:** ![Richflairstv](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/richflairstv/32/2405_2.png) [@Richflairstv](https://forum.algorand.co/u/Richflairstv)\ **Post date:** [May 6, 2024, 8:48pm UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/24 "2024-05-06T20:48:15Z")
Honestly before we chatted on spaces, Dashawn is the only reason I took you guys serious. Public outreach is important. I’m sure you guys work hard but brand awareness is so important in this fast changing market. Wishing you guys the best. 🤝 ---
**Author:** ![mc\_aus](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/mc_aus/32/2931_2.png) [@mc\_aus](https://forum.algorand.co/u/mc_aus)\ **Post date:** [May 9, 2024, 3:35am UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/25 "2024-05-09T03:35:19Z")
Hey guys, One thing here is xUSD/EURS isn’t a stable swap pool, as they aren’t 1:1 assets. So USDC / USDT would be more effective. ---
**Author:** ![Xxiled](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/xxiled/32/3111_2.png) [@Xxiled](https://forum.algorand.co/u/Xxiled)\ **Post date:** [May 9, 2024, 7:22am UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/26 "2024-05-09T07:22:47Z")
I think that’s a fair point. Additionally I’ve neglected Gold and Silver which are our biggest liquidity pools for xUSD so I’ll need to add those and rework some things. Will update with new percentages today ---
**Author:** ![mc\_aus](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/mc_aus/32/2931_2.png) [@mc\_aus](https://forum.algorand.co/u/mc_aus)\ **Post date:** [May 9, 2024, 7:32am UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/27 "2024-05-09T07:32:00Z")
A couple of other things I think a worth considering, but appreciate these things might take more time with the Dev needed. xUSD is actually staked in a liquidation pool, so it is useful while being staked - acting as the liquidator for vaults that default. This model has been effective. I think for a single staked asset the other version would be staking USDC to market making pool that defends the peg, this would also be useful particularly if a portion of interest was channelled here as rewards as it would be encourage USDC deposits to the pool. ---
**Author:** ![Xxiled](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/xxiled/32/3111_2.png) [@Xxiled](https://forum.algorand.co/u/Xxiled)\ **Post date:** [May 9, 2024, 7:57am UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/28 "2024-05-09T07:57:53Z")
Yeah I think having a mechanism to fund a liquidation service is a good one. I think going into Q4 would be best for that. ---
**Author:** ![Xxiled](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/xxiled/32/3111_2.png) [@Xxiled](https://forum.algorand.co/u/Xxiled)\ **Post date:** [May 9, 2024, 7:58am UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/29 "2024-05-09T07:58:17Z")
I’ve updated the allocations to include Gold, Silver and Algo while removing EURS and USDt. ---
**Author:** ![dashawn.algo](https://avatars.discourse-cdn.com/v4/letter/d/f1d935/32.png) [@dashawn.algo](https://forum.algorand.co/u/dashawn.algo)\ **Post date:** [May 9, 2024, 8:20am UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/30 "2024-05-09T08:20:21Z")
Yes this would be a very very good idea 👍 the funding of the pool for liquidation but I would say that 99% of the vaults are very healthy right now ---
**Author:** ![dashawn.algo](https://avatars.discourse-cdn.com/v4/letter/d/f1d935/32.png) [@dashawn.algo](https://forum.algorand.co/u/dashawn.algo)\ **Post date:** [May 9, 2024, 8:27am UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/31 "2024-05-09T08:27:46Z")
I noticed the pool with the most fee and the most trading value and the biggest TVL most of the time is USDC/ALGO pool and I that is because Algo being the core asset of Algorand and tbe 1st asset that people get for Algorand . So that being said the xUSD/ ALGO should have high priority because it can be just as big one day 🙂 but all good decisions ---
**Author:** ![dashawn.algo](https://avatars.discourse-cdn.com/v4/letter/d/f1d935/32.png) [@dashawn.algo](https://forum.algorand.co/u/dashawn.algo)\ **Post date:** [May 9, 2024, 8:33am UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/32 "2024-05-09T08:33:41Z")
And if we going to do the gold and silver maybe can do a little bit like 5% or 10% for the xUSD/GOLD xUSD/SILER on Tinyman to at least something 🙂 ---
**Author:** ![mochanerd](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/mochanerd/32/3199_2.png) [@mochanerd](https://forum.algorand.co/u/mochanerd)\ **Post date:** [May 9, 2024, 5:45pm UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/33 "2024-05-09T17:45:39Z")
You’re right! I just like the idea but it’s not 1:1 ---
**Author:** ![lobo](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/lobo/32/2828_2.png) [@lobo](https://forum.algorand.co/u/lobo)\ **Post date:** [May 9, 2024, 10:54pm UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/34 "2024-05-09T22:54:03Z")
xUSD staking is shortsighted and a waste of funds imo. just use the funds on xUSD-USDC pool which still encourages people to mint xUSD but it also helps with the peg and puts the xUSD to actual use also why is the 2nd most important pool on algorand the xUSD-ALGO not getting the 2nd most funds? again i dont care about your personal affiliations with meld gold, think about what makes the most sense for CompX and its stablecoin xUSD. native token - USD pools are normally the most important pools after stableswaps ---
**Author:** ![mc\_aus](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/mc_aus/32/2931_2.png) [@mc\_aus](https://forum.algorand.co/u/mc_aus)\ **Post date:** [May 9, 2024, 11:51pm UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/35 "2024-05-09T23:51:23Z")
Hey @lobo I do think xUSD staking isn’t ideal unless it had something like a mention above where it is utilised for liquidations. I think ALGO v GOLD & SILVER in reality whichever will attract the most liquidity will benefit the most, to date it has been GOLD & SILVER (by far) in terms of ROI of liquidity per $ of rewards. But assuming you believe the ALGO / xUSD pool will outgrow the GOLD & SILVER paired pools unless the value to xUSD you mention is something different? ---
**Author:** ![Xxiled](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/xxiled/32/3111_2.png) [@Xxiled](https://forum.algorand.co/u/Xxiled)\ **Post date:** [May 10, 2024, 7:50am UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/36 "2024-05-10T07:50:47Z")
Gold and silver are our biggest liquidity sources currently so want to ensure it stays that way. Having our stablecoin backed by majority stables and less volatile assets like silver and gold is a differentiator for us. In the world of swap routers alike ours and vestige’s the specific pools for liquidity are, in my opinion, less important than the overall liquidity itself. xUSD staking is part of our multi-layered approach to provide addition use cases for holding xUSD a- it’s the simplest in Q3 and will likely be expanded to something around liquidations as @mc_aus mentioned. This is the first phase for xUSD staking in general - we’ll be measuring how successful it is by uptake and review for Q4. ---
**Author:** ![mc\_aus](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/mc_aus/32/2931_2.png) [@mc\_aus](https://forum.algorand.co/u/mc_aus)\ **Post date:** [May 10, 2024, 8:05am UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/37 "2024-05-10T08:05:34Z")
Yes sorry @Xxiled I didn’t word my response regarding xUSD particularly well. I appreciate it is a first step of a multi-layered approach & an interim step and the simplest to implement which I think makes sense. The more complex pieces would be great but understand with that comes more DEV time requirements. ---
**Author:** ![lobo](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/lobo/32/2828_2.png) [@lobo](https://forum.algorand.co/u/lobo)\ **Post date:** [May 10, 2024, 11:49am UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/38 "2024-05-10T11:49:52Z")
it matters if the tokens you pair it with aren’t pegged themselves really. GOLD and SILVER relies on meld gold and its MMs to keep the peg tight which means you rely a lot on a centralized entities which is not the best way imho. also i think this is the case only due to VCs or the projects themselves and wasn’t a decision by the community members utilizing xUSD rrelatively risk free staking for xUSD is not a great use case, its a way to get people in but they wont use xUSD at all really. they will just grab the free money through these staking pools and wont help the adoption at all imo. focus on xUSD-USDC is the way to go ---
**Author:** ![Xxiled](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/xxiled/32/3111_2.png) [@Xxiled](https://forum.algorand.co/u/Xxiled)\ **Post date:** [May 10, 2024, 12:45pm UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/39 "2024-05-10T12:45:16Z")
As explained the staking is a first step in adding utility, it’s not the end game. What I’ll do though as I do understand and appreciate your feedback is I’ll move some allocation from staking to the xUSD/USDC pool. ---
**Author:** ![mc\_aus](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/mc_aus/32/2931_2.png) [@mc\_aus](https://forum.algorand.co/u/mc_aus)\ **Post date:** [May 10, 2024, 8:59pm UTC](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906/40 "2024-05-10T20:59:45Z")
Hey @lobo appreciate that, a vast majority of ALGO’s volume holding the price across the key liquidity is from centralised market makers though certainly not the case in Algorand DeFi so I appreciate the point. The Gold and Silver market can also be made by anyone who redeems but appreciate that is harder. But there is also minimal impermeant loss compared to pairing with ALGO which has an impact on the rewards needed. The VC / project comment, the largest revenue line and by far the deepest liquidity is the reason but assuming you mean the community want Gold and Silver removed from xBacked completely? [Previous page](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906.md?page=1) [Next page](https://forum.algorand.co/t/gp12-defi-rewards-tdr-proposal-compx/11906.md?page=3)