[Community Discussion] How can we improve Valkyrie Protocol?

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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? 

  1. token airdrops to those that are not involved with Valkyrie Protocol (Luna stakers)
  2. high yields for staking and liquidity provision 
  3. Spectrum Protocol seeming to offer ridiculously high APY on an auto-compounding LP-Pool
  4. [please post further observations!

What could we do about that?

  1. Limit airdrops only to Luna Stakers who actually hold or stake more than 80% of their VKR tokens
  2. 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
    d) auctions*
  3. ask Spectrum protocol to limit the max Auto-Compound rate to 50% for a short term relief

Auctions?

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 :slight_smile:

ARN0

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Hi Arn0.

Great post, and thanks for being an active participant in the protocol. We really value your support and this is exactly what we need – active community discussions that aim to better the project.

The selloff we’ve seen in the past few days can be closely related, but not exclusive to, the reasons you suggested (it’s obviously compounded exponentially by FUD and other big dropping players like whales). But your remedial suggestions are spot on! Just initial cursory thoughts…

  1. We have limited our airdrops to cap out the top 1%. But your suggestion on the ratio is hold vs staked is something that we can definitely look into.

  2. a) We are allowing for campaigners to have the flexibility to have lock up periods of the rewards distributed. We learned from our own Share2Earn campaign that rewards can be immediately claimed and sold which will present immediate sell opportunities. However, be assured this is something we’re looking into. Likely, if in line with the campaigner, the VKR referral rewards will be escrowed like the deposit, and released.

b) We’ve finalized 8 new campaigns this week alone. We’re also in active conversations with 15 other meaningful protocols who are launching soon. Not only protocols, but we’re in conversations with NFT platforms and protocols from other chains. Tell us your favourite protocol, and if we’re not in conversations with them yet, I’ll personally reach out to them and engage.

c) The APY in the Valkyrie native webapp is attractive, so I hope to see more gather there again.

d) I like the auction idea, and we can discuss this as a team. I’ll refrain from my personal bias here, but would love to hear from the community members.

  1. Protocols engage one another in respectful conduct. Spectrum has a great community and I’d be happy to further discussions with Spectrum if necessary. But so far, my personal opinion is that we do not need to.

At the end of the day, I understand that the sell off hurts. But we’re a value-add driven protocol, and will remain dedicated to the community. I hope the loyal community will not be distracted by the FUD. We’re a value-add driven protocol, partnering with every meaningful protocol on the Terra ecosystem to bring value. It takes time to deliver a campaign and we work in partnership with different projects. We’re not meant to act unilaterally. We carefully plan out each campaign and discuss the details and the technical deliverables in great detail.

I’m not asking for extra grace – I’m just asking for understanding that when we say campaigns in a month, then we aim for a month. For some reason impatience brings greater FUD, tho the unit of time doesn’t change.

I welcome any further feedback, and enjoy such discussions.

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Thank you for your feedback.

With regards to the auctions and automated rebuying of sold tokens, take a look at how Axion has done it. They have pulled it off and they are actually keeping up to all of their promises so far :slight_smile:

I meant the whole processes / complete campaign life cycle, not just to align with another protocol and publish an announcement. I mean should there ever be 5+ campaigns in parallel, I`m inclined to say that it should be barely impossible to promote them all in parallel AND do that efficiently. Money can only go into one place - unless you are a government and you can simply print more^^. More campaigns live at once = less inflow per campaign.

I agree it is very attractive, but let’s face it: degens will go where the highest yield is. If Valkyrie doesnt have the highest APY, that means they will go to another aggregator that offers auto compounding. So if SPEC has higher yields AND has the ability to pulls the price down, what will happen to Valkyrie Procotol investors?

  • lower prices (steadily, as technically close to 33% of all newly rewarded VKR are going to get sold into UST)
  • paper hands will cash out
  • the herd will not buy more, as they either believe it could go lower (which it will) or that it may not go back up and goes to zero
    …

I literally meant other means of incentivation - be it “Early Adopter”, “Bronze, Silver, Gold, Platin Supporter” NFTs with future features, like limited access to otherwhise closed pools and such.

Don’t get me wrong, you guys did a fantastic job and - mate - your documentation alone shows you guys certainly know what you are doing.
I also agree that you cannot throw your former decisions over board just because things are not working out completely as planned. I guess it must be best to adjust and tweak only a few things at a time and then giving it time to observe the outcome of those changes.

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Hello Names Davey

I would like to take a moment to share some ideas or thoughts along improvement of Valkyrie

The proposal to have participation rewards locked until the end of campaigns was the correct course of action as immediate access to “said rewards” will always be sold off if the price was warranting to garner immediate profit since at current price 1.40$ 50 participation lockup does not cost that much into comparison of 10 - 40 Participation rewards + Referral rewards will generally offset the lockup especially for heavy money

Second - Spectrum protocol vaults have caused selling pressure upon each protocol it has a vault for so the issue therein is not so much with spectrum as we can see Nexus - has a fully functioning product that is offsetting that pressure (Showing it can be negated with appropriate mechanism money)

So that leads us to how can we improve Valkyrie Protocol - How can we insure profitable and long-Term growth - Insure Campaigns Offer Value While Deriving Value back

Cause We have Issues that currently are not present but will become so

  • Astro will be launching - the strategy they have taken is almost entirely “Vampire” think Sushiswap to Uniswap tactics - They can also launch a High APY attention Vault the same as Spec or any other optimizer - this is possible more downward pressure so the future also has to be tackled while at the same time short and midterm

So in effect Valkyrie - Will need to increase its revenue sources

This can be accomplished in a myriad of ways which can in the long-term bolster the ultimate long term success and also give a purpose for those loyal to the protocol.

In effect - with the upcoming launch of Prism - and multiple other protocols - I assess opportunity

That partnerships - can garner more Valk - Pairings during campagins
think Mine-Valk
something effectively that drives purchasing of both campaign tokens
discussed in promise with each participating protocol
the rewards TBD between partners but most “desirable” being rewards paid out in “Said Platform Tokens” = Increasing points of liquidity for Valkyrie which Also driving - Campaigns

this should in theory promote buy pressure and decrease sell pressure during campaigns - which proportion of profits to be locked into “Long-Term Economic Endowment Provision” - which should be used to build a healthy reserve yield bearing - which proportions over time can be used for buybacks

Apollo Dao - Has a similar idea of the War-Chest which are long term views to bring revenue sources by holding yield assets

  • The reason this proponent and I already surmise some would say “Selling Valk For Assets” would create negative sell pressure

  • This does not need to be the case

  • Since we seek partnership then cultivating those partnerships in a “Win-Win” scenario should be viewed as the utmost priority - since this also gives reason to have the partner

  • with the launch of prism and astro - These partnerships should be better defined to also drive value back into Valkyrie - as well as offer the single best advertisements for partners

  • effectively to cultivate long term growth

  • we need to insure more liquidity towards valk

  • we need to establish possible “Residue” of unclaimed Valk - To Partnership with Prism Protocol - To Be the First y Refraction governance token - {If anyone needs a further synopsis of this idea please feel free to reply specifically how i believe this to be useful as it requires reading Prism Protocols Whitepaper to Get the General Idea} - This alone would give a advantage
    Be the First to Garnish a Astroport Duel Yield incentive
    -Advertisements Via ‘Apeboard’
    other high used Dashboards

This has been a thought

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Hi,

You guys have airdrops ? :open_mouth:

I think Spectrum has an issue to mislead people with value since inception, and APY calculated over a year isn’t consistent for anyone DYOR listed on coingecko since just a month.

I’m not a $VKR whale, take my words accordingly.

I do think “incentivies” are powerful to keep people addicted, especially along great tokenomics.

My use case :

I do have an army of shillers to convince, but they’re mercenaries : if you airdrop anything, expect them to dump it all, so I’m waiting you guys finish this puzzle, investors wants to see higher lows.

So, in my humble opinion, we need to provide more intrinsic value within $VKR eg. partners merch discounts, airdrops cross-chain, alpha Liquidity Mining type IEO…

By increasing utility of $VKR holding though governance, intrinsic relatives, referrals campaigns & single sided staking.

If you guys kicks-off liquidity mining, demand in $VKR would skyrocket !

Example, promoting cross-chain DeFi :

Partner with Saber to wrap $VKR on Solana through wormhole.
Farm wVKR & wUST for SBR.
Use dev/community funds, to get in this pool a bit heavy then reward all VKR holders with SBR.

To keep track of users cross-chain, we can setup at verify.grapes.network to get links between discord and Solana, then I ignore what’s on Terra side tbh, it’s unknown territory to discover for me.

Liquidity Mining example :

Partner with another Terra project, then on 1 week, everyone inthe $VKR:$UST pool will get a respective share on a debatable supply or value of partnered project tokens.

I discovered this on crypto.com which allows users to single side stake $CRO for daily airdrops of partnered projects (IEO, Initial Exchange Offering) after a staking period of 2 weeks without lock a.k.a supercharger.

Partnered projects will have best interest to enter asap, as they know value they will get from governance for whitelisting/blacklisting concurrence and/or benefit virtuous wealth sharing from staking rewards.

Just an idea, maybe I should open my own thread for that.

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Hi everyone, here is my 2 cents.

The value of VKR derives from its usefulness, which is why it can only increase in the presence of a continuous flow of active campaigns.

At the moment, as there are no active campaigns, it has no use other than speculative ones.

In my opinion, therefore, the priority is to have a continuous flow of active campaigns, I also think that the biggest rewards right now should go to the VKR stakers in order to make staking more appetizing and reduce the sales pressure.

A continuous flow of active campaigns and the incentive for staking are the only weapons to defend and increase the value of VKR and fight the pressure of selling specs and the physiological sale of rewards after the campaigns.

One could think of a mechanism whereby if at the end of the campaign you stake the rewards earned rather than sell them you will have a higher APY (perhaps for a period), this will allow you, among other things, to be able to acquire more rewards in the next campaigns! and if there are continually campaigns it becomes interesting :slight_smile:

Another fundamental factor will be the success of the campaigns, the more the campaigns will be able to engage users and create value for the creators of campaigns, the more the protocol will be used and will attract other campaigns that will bring more value.

In the short term, therefore, I suggest increasing the staking rewards and starting campaigns as soon as possible

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Valkyrians… best wishes to you:

I was just wondering if someone could shed some light on the upcoming “Valkyrian Ticket” (special incentives for stakers).

Thanks in advance for any information provided.