Hi everyone, thank you for stopping by.
This already means that you are interested in Valkyrie Protocol, so please take your time to read and comment.
I would like to open a discussion on the current situation with VKR supply increasing and the price going down dramatically.
Being an active user in the Telegram Group I noticed that there are some rumors around why VKR would be dumping. Lots of users even made suggestions, which I´d like to bring up here so everyone can read and comment on them.
Please make sure to keep your posts respectful, responsible and constructive, as we are all in this together. Note that I am not affiliated with the project and I may not know little detail about Valkyrie Protocol that one would need to actually make good suggestions here. I would like to encourage a lgical debate as to what makes sense and how we can grow from this as a community.
We are facing downward action with the VKR price. What drives price? Sure thing, it is supply and demand.
What do we see currently?
- token airdrops to those that are not involved with Valkyrie Protocol (Luna stakers)
- high yields for staking and liquidity provision
- Spectrum Protocol seeming to offer ridiculously high APY on an auto-compounding LP-Pool
- [please post further observations!
What could we do about that?
- Limit airdrops only to Luna Stakers who actually hold or stake more than 80% of their VKR tokens
- a) increase yield and add a rewards lock up period of at least 30 days to decrease immediate selling pressure
b) and at the same time allow the team to bring forward more solid campaigns before the selling continues
c) incentivize people to re-stake their tokens as opposed to selling VKR in order to create VKR-UST-LP tokens
- ask Spectrum protocol to limit the max Auto-Compound rate to 50% for a short term relief
We could have an auction-pool. Picture this:
- LP-providers receive rewards in VKR, from which 50% currently get sold into UST to again be able to mint new LP tokens - we do not want that, as is creates sell pressure (this is also what SPEC does!)
- as of today rewards could be sold on terraswap (or on Valkyrie Procotol page) OR they could be locked into the regular staking pool (which is what we want)
- if we opened up an auction pool, we could allow an APY-boost for liquidity providers selling their tokens into the auction pool. This boost could e.g. add as much as 20% APY per wallet, depending on how much (%) of the overall rewarded VKR of this wallet has been sold into the auction pool.
- users and the team can both buy tokens from the auction pool for 10% below current market price and directly stake it into the regular staking pool for X days (locked). Afterwards there could be partial unlock of tokens every Y days. This might give us the stability that we need, since - we all know this - no protocol can run 1-2 campaigns every week for years to come.
Admittedly, I am not exactly sure how other auction systems work, but I picture this would be a good starting point for a discussion.
Again, please keep it fair, respectful and constructive - we don’t need random people’s hate here.
Let’s find a way to improve the protocol