# GP14 DeFi Rewards (TDR) Proposal - CompX **URL:** \ **Category:** Rewards Proposals\ **Tags:** targeted-defi-reward, gp14\ **Created:** [December 23, 2024, 1:58pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789 "2024-12-23T13:58:28Z")\ **Posts on this page:** 17\ **Page:** 1
**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:** [December 23, 2024, 1:58pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/1 "2024-12-23T13:58:28Z")
In this round of TDR we want to focus on strengthening liquidity for our tokens - xUSD, CompX and cAlgo. All LP incentives using TDR funds will be delivered via our [Pact.fi](http://Pact.fi) powered farms. We will support Tinyman farms for xUSD/Algo with 10k of Algo from our TDR allocation. CompX/Algo LP on Tinyman will be incentivised via xUSD interest share and our own staking pools. Finally we have 10k Algo assigned to incentive the Gold/xUSD vault over on Algorai. This great use case of xUSD and Gold is a great one to highlight. Finally we will be refilling our xUSD staking with the final 20k of Algo from our TDR allocation - similar to what we did in the previous quarter. Total incentives: 130,000 ALGO ## Liquidity Incentives xUSD/ USDC (StablePool) - CompX Farm 30k Algo xUSD / COMPX - CompX Farm 5k Algo to farm, 5k Algo to lockdrop holders (to be distributed weekly to all eligible users directly to wallets) xUSD / Gold - CompX Farm 10k Algo xUSD / Silver - CompX Farm 10k Algo cAlgo / CompX - CompX Farm 10k Algo cAlgo / xUSD - CompX Farm 10k Algo cAlgo / Algo - CompX Farm 10k Algo xUSD / Algo - Tinyman Farm 10k Algo ## Staking Incentives xUSD Staking - 20k Algo ## Other Algorai Gold / xUSD vault - 10k Algo _Edit: 30th December 2024 - Removed Algo staking incentives following community feedback. Added Tinyman LP incentives and xUSD staking incentives instead._ ---
**Author:** ![Jacopo](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/jacopo/32/2760_2.png) [@Jacopo](https://forum.algorand.co/u/Jacopo)\ **Post date:** [December 23, 2024, 2:46pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/2 "2024-12-23T14:46:15Z")
I’ll leave here the same response I left under the Messina TDR proposal. > Staking incentives > Algo staking via CompX Consensus injection pools - 30k Algo If this refers to the same type of boost as mALGO > [@GP14 TDR Proposal - Messina](https://forum.algorand.co/t/gp14-tdr-proposal-messina/13790/2): > > Incentivizing just holding the LST is straight out wrong. It doesn’t count towards TVL and is just a funnel to centralize delegation of stake. At this point why not give TDR rewards to all Reti Stakers? It’s fine to incentivize the adoption of the LST within the DeFi protocols as a tool for what its meant to do, but to just get a free boost out of providing nothing it’s wrong. ---
**Author:** ![565dsi](https://avatars.discourse-cdn.com/v4/letter/5/c4cdca/32.png) [@565dsi](https://forum.algorand.co/u/565dsi)\ **Post date:** [December 23, 2024, 3:04pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/3 "2024-12-23T15:04:53Z")
I don’t believe CompX was going to incentivize the simple holding of cAlgo going into Gov period 14. This may be referring to injecting these Algos into the node which would increase the value of cAlgo as if consensus rewards are being accrued. Since we don’t know when consensus rewards will actually start happening, this could drive interest in cAlgo in the broader community while also benefiting LPs and the entire ecosystem. I’d agree that incentivizing liquidity is the best way to do this, but there’s a logic to having your token accrue value before others as well I think. Maybe I’m not understanding though. Hopefully Xxiled can come by and provide clarity. \*Edited because I totally missed the ball on what was being said the first time ---
**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:** [December 23, 2024, 4:44pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/4 "2024-12-23T16:44:55Z")
We’re not incentivising holding cALGO - the 30k is provided to those that stake their ALGO into our consensus ready node. ---
**Author:** ![TheHolyGoat](https://avatars.discourse-cdn.com/v4/letter/t/8baadc/32.png) [@TheHolyGoat](https://forum.algorand.co/u/TheHolyGoat)\ **Post date:** [December 23, 2024, 4:53pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/5 "2024-12-23T16:53:33Z")
I like it a lot! cALGO/ALGO is a good focus and gives users both gov and consensus eligibility. I also like how lockdropers are included with the xUSD/COMPX incentives. Focusing on deep xUSD liquidity with this proposal is smart as well–xUSD has been increasing in LP TVL lately and this should certainly help extend that trend. We need more cALGO LP because unfortunately not everyone mints through the actual site and the LP TVL is low, so I think you were wise to focus on cALGO pairings, especially with the potential for consensus rewards to start during G14. The CompX cALGO farms autocompound of course, so the deeper liquidity should help reduce slippage ---
**Author:** ![Jacopo](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/jacopo/32/2760_2.png) [@Jacopo](https://forum.algorand.co/u/Jacopo)\ **Post date:** [December 23, 2024, 6:29pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/6 "2024-12-23T18:29:19Z")
Yeah that just means boosting cALGO rewards using TDR funds which should be allocated to improve our DeFi metrics and activity. Giving a boost for just minting LST and not requiring a successive action that contributes to either volume or TVL in the overall DeFi ecosystem is an abuse of funds. Shouldn’t be done through governance emissions. Otherwise Algorand should incentivize properly all the ecosystem delegation mechanisms, which still is not the duty of TDRs @Adri ---
**Author:** ![oysterpack](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/oysterpack/32/1866_2.png) [@oysterpack](https://forum.algorand.co/u/oysterpack)\ **Post date:** [December 23, 2024, 8:32pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/7 "2024-12-23T20:32:12Z")
The xUSD/ALGO pool is pivotal in maintaining the $xUSD peg, leveraging $ALGO’s high liquidity and notable volatility as a pairing asset. The priority should be clear: drive xUSD/ALGO liquidity growth through targeted incentives of 100K ALGO. ---
**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:** [December 23, 2024, 8:38pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/8 "2024-12-23T20:38:04Z")
It’s not an abuse of funds. It’s a reward to target our DeFi - specifically to incentivise people to stake their algo with us - what they do with the cALGO is up to them. Every lst provider is doing the exact same thing - folks did it last quarter too. ---
**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:** [December 23, 2024, 8:40pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/9 "2024-12-23T20:40:24Z")
XUSD /algo will be incentivised on both tinyman and pact via various means. We are targeting multiple xUSD liquidity sources, notable many which have higher liquidity than our algo pool. xUSD doesn’t live or die by one pool - I mean a few months back it was the USDC pool that was the be all and end all. ---
**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:** [December 24, 2024, 4:45am UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/10 "2024-12-24T04:45:11Z")
I like the Algorai allocation it is nice to see some incentive for platform that have implement xUSD on there platform. This also give xUSD another use in the Algorand ecosystem. ---
**Author:** ![GhostOfMcAfee](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/ghostofmcafee/32/3235_2.png) [@GhostOfMcAfee](https://forum.algorand.co/u/GhostOfMcAfee)\ **Post date:** [December 27, 2024, 8:49pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/11 "2024-12-27T20:49:24Z")
As I’ve said elsewhere, I have fundamental problems with how TDR is done. So I am commenting on every proposal to raise awareness of it. Firstly, to the extent we are incentivizing LP, I think any rewards should be targeted to stablecoins and wrapped assets. Though, I commend you for largely sticking to that, I question how the larger ecosystem benefits by giving goodies to CompX Token lockdrop holders. Of course, every other platform gives generous incentives to its token when it has one. So, this is more of a comment on the problem if TDR operation as a whole. Second, I have deep reservations about AF allowing platforms to incentivize their own LSTs using TDR without there being controls on this. It’s simply too important from a network security perspective to treat this the same way we did with TDR in the past. Again, this is a systemic issue. Finally, I find the Algorai allocation questionable. Namely the decision to throw everything at one specific asset. Why is this all going to Gold instead of being spread amongst ETH, BTC, and Algo vaults? ---
**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:** [December 27, 2024, 9:07pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/12 "2024-12-27T21:07:36Z")
Thanks man, appreciate the comments. I largely agree with your sentiments on TDR, especially in this final\* chapter. With that, I’ll address your main questions: 1. Lockdrop user incentives - so I wanted to assign rewards to lockdrop holders as they are technical holders of the incentivised lp tokens, yet they can’t partake of the farms due to the lockup - we just wanted it to be fair on those guys. 2. On the LST front, yeah, i think it’d be a nicer landscape if algo staking couldn’t be extra incentivised - we’re only doing it cause we have to to be competitive. 3. Finally, on the Algorai front, we’re only incentivising the gold vault as it’s the only one that supports xUSD. If algorai wanted to support more xUSD integration we’d totally add additional rewards. Appreciate you taking the time to address all platforms individually, I’m hoping for all our sakes this is the last time we all have to do this. ---
**Author:** ![GhostOfMcAfee](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/ghostofmcafee/32/3235_2.png) [@GhostOfMcAfee](https://forum.algorand.co/u/GhostOfMcAfee)\ **Post date:** [December 27, 2024, 9:12pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/13 "2024-12-27T21:12:43Z")
Thanks for the explanations. All makes sense to me. ---
**Author:** ![Maugli](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/maugli/32/907_2.png) [@Maugli](https://forum.algorand.co/u/Maugli)\ **Post date:** [December 28, 2024, 12:23pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/14 "2024-12-28T12:23:36Z")
TDR - ~~Token Distribution Ratio~~ _Targeted Defi Rewards_ LP - ~~Liqudity Provider~~ _Liquidity Pools_ LST - Liquid Staking Tokens AF - Algorand Foundation TVL - Total Value Locked DEX - Decentralized Exchanges CEX - Centralized Exchanges RWA - Real World Assets GP - Governance Period AMM - Automated Market Maker FF - _Folks Finance_ Changes are in italics Thanks, @GhostOfMcAfee ---
**Author:** ![GhostOfMcAfee](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/ghostofmcafee/32/3235_2.png) [@GhostOfMcAfee](https://forum.algorand.co/u/GhostOfMcAfee)\ **Post date:** [December 29, 2024, 7:02pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/15 "2024-12-29T19:02:51Z")
TDR - _ **Targeted Defi Rewards** _ LP - _ **Liquidity Pools** _ FF - _ **Folks Finance** _ ---
**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:** [December 30, 2024, 9:17pm UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/16 "2024-12-30T21:17:20Z")
We’ve update the proposal to remove the ALGO staking incentives and redistribute that 30k elsewhere following community feedback and assessing the other liquid staking provider TDR allocations. ---
**Author:** ![Adri](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.algorand.co/adri/32/2310_2.png) [@Adri](https://forum.algorand.co/u/Adri)\ **Post date:** [January 28, 2025, 11:36am UTC](https://forum.algorand.co/t/gp14-defi-rewards-tdr-proposal-compx/13789/17 "2025-01-28T11:36:45Z")
Closed on January 28, 2025, 11:36am UTC