Hello, as a liquid provider member of the StellaSwap community I wish to raise a request to the Moonbean Treasury Council.
I have been LPing for a long time with StellaSwap. It is a great DEX, unique in its design given that it is the only DEX with concentrated liquidity on Polkadot. StellaSwap is a great asset for Moonbeam. It managed to have over 10M TVL. StellaSwap has a very strong community that supports it and wants this DEX to suceed.
Right now there are several problems that have contributed to the loss of TVL. One of them is the lack of communication. Right now the rewarder has stopped working and the community has requested the aid of the team yet for 3 days the team has been silent. This has contributed to the loss of 1M TVL.
3 days ago StellaSwap used to have 2.65M TVL and now it has 1.54M TVL. The community wants to help, wants the DEX to succeed yet the devs are silent, they are days absent without answering any question and without informing us what is going on. This is making liquid providers to pull off their liquidity. This is sad to see, a DEX dying because of neglect.
Also there are several bugs that keep repeating everytime, this has contributed to people leaving the DEX because of those bugs, for example UI bugs where incorrect numbers are shown, the rewarder malfunctioning and LPers having to wait hours or days to get their rewards, people unable to exit their liquidity positions, etc.
The communication with the devs started to decline when they announced the development of the DEX AethonSwap which ultimately failed and had to be closed. Since then devs rarely communicate with the community.
StellaSwap has so much potential if it is well administered, despite all the bugs and lack of communication it still has 1.54M TVL, if a team is assigned that deals once and for all with the bugs and listens to the community it can return to its former glory and excel. Both if the devs and the community work as a team this DEX can be great again.
GLMR holders always talk about a lack of utility for the token, if Moonbeam acquires StellaSwap they can replace veSTELLA token with veGLMR and give the GLMR token utility to vote on StellaSwap pools using the GLMR token where they would hold the token for 2 years to get trade fees. This would incentivize people to hold the GLMR and the token would have utility. Also DataHaven states that it utilizes the StellaSwap platform for liquidity and to support its ecosystem, so it would be a strategic acquisition needed for DataHaven roadmap.
Also the integration of a fidelity program to StellaSwap would help to make it sustainable.
When the DOT rewards were plentiful StellaSwap had more than 10M TVL then when the rewards diminished you have the current 1.54M TVL on the protocol. The DEX only attracted yield hunters and once the rewards were gone they were gone with them. The reason a second bounty proposal on the Polkadot Treasury was rejected was because StellaSwap was unable to retain TVL.
It is necessary for StellaSwap to create a fidelity program where LPers who have been years with StellaSwap get a boost on rewards, to promote small LPers to avoid centralization since big LPers take their big TVL and rewards with them while small LPers stay on the protocol, also reward LPers who contribute to many different pools and are active most of the time, also give a boost for those LPers who keep addying money consistently into their positions on a monthly basis, also give a boost to those LPers who reinvest their rewards in either the protocol token or in increasing their TVL position size in the pool that they are LPing; all of this will give resilience to StellaSwap otherwise any help or rewards will go to yield hunters and TVL won’t remain in the protocol.
Given the lack of communication from the team, the persistent bugs that keep popping up, the neglect of the DEX where rewards aren’t distributed, it seems the team has detached from the DEX.
Before all the liquidity in the DEX dries up because of neglect Moonbeam should purchase StellaSwap from its creators, work along with the community and address the issues to make it work again. This DEX has so much potential it just needs a team that is eager to listen and to work along the StellaSwap community. They are a very loyal community and they would be glad to work with them. This DEX has so much potential and it can be big again, it just need to be correctly administered.
We the StellaSwap community would be glad to work along Moonbeam for the success of StellaSwap.