DSTR is a liquidity incentive protocol that follows a novice and unique mechanism for Liquidity Provider incentives. Currently, projects may users look to acquire liquidity from liquid tokens such as AVAX, ETH, USDC or USDT. This is one style of holder. Another group of investors is current liquidity providers in other LP positions. Some are current positions, some are dust from old positions.

Enter DSTR an incentive schematic for attracting current LPers to provide for a new token instead. DSTR has 3 main parts: Acquisition + weight assignment, Splitting, reforming + Balancing.

Acquisition and Weight Assignment involves reading LP and determining if it is a whitelisted contract address and determining how much avax is in the position. Splitting involves unpairing the LP and sending the non-AVAX portion to the Treasury. Reforming takes the AVAX and the new token and pairs them in the LP, excess AVAX is sent to the Treasury. LP receipt token is then distributed back to holders.

The DSTR protocol while simple in practice, it can be scaled and embedded within other tokenomic ecosystems. Below is the DSTR enhanced with dual-tier rewards, a simple tri-token system with an included xTOKEN, and the end LP being distributed via ecosystem NFT.

This dual-tier system allows projects to put preference on specific LP tokens, whether that is for a mock vampire attack or trying to tap into an existing community, it can be a means of incentivizing specific liquidity providers to provide for you instead.

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Below is a link to the DSTR protocol official gitbook. Shoutout to Average Andy for naming this idea.

Gitbook

DSTR is a liquidity incentive protocol that follows a novice and unique mechanism for Liquidity Provider incentives. Currently, projects may users look to acquire liquidity from liquid tokens such as AVAX, ETH, USDC or USDT. This is one style of holder. Another group of investors is current liquidity providers in other LP positions. Some are current positions, some are dust from old positions.

Enter DSTR an incentive schematic for attracting current LPers to provide for a new token instead. DSTR has 3 main parts: Acquisition + weight assignment, Splitting, reforming + Balancing.

Acquisition and Weight Assignment involves reading LP and determining if it is a whitelisted contract address and determining how much avax is in the position. Splitting involves unpairing the LP and sending the non-AVAX portion to the Treasury. Reforming takes the AVAX and the new token and pairs them in the LP, excess AVAX is sent to the Treasury. LP receipt token is then distributed back to holders.

The DSTR protocol while simple in practice, it can be scaled and embedded within other tokenomic ecosystems. Below is the DSTR enhanced with dual-tier rewards, a simple tri-token system with an included xTOKEN, and the end LP being distributed via ecosystem NFT.

This dual-tier system allows projects to put preference on specific LP tokens, whether that is for a mock vampire attack or trying to tap into an existing community, it can be a means of incentivizing specific liquidity providers to provide for you instead.

Thanks for reading Minerminer's Minutes! Subscribe for free to receive new posts and support my work.

Below is a link to the DSTR protocol official gitbook. Shoutout to Average Andy for naming this idea.

Gitbook