Request the Moonbeam Treasury Council to make Moonbeam purchase the DEX StellaSwap from its creators and assign devs from the Moonbeam foundation to administer it

[stevenssmithwalker]

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.

[Raus_George]

Congratulation for this topic.

[Raus_George]

The fact that they have not reached an agreement so far is inconceivable. The problem is with Stellaswap or Moonbeam. This delay is not beneficial to either party. It seems that there is no interest or the reality is completely different and we do not know it yet.The lack of clarification regarding Stellaswap and Moonbeam, the lack of an agreement between the two only makes things worse. Since we have one foot in the hole, we are unable to solve our own problems at home. What more can you expect? All this has led to a lack of trust among those on these groups, among investors in Moonbeam in general, among users who use or used Stellaswap. It is a mockery of everyone.Do.something my friends or we are going to 0 for real.

[_yrn]

Thanks for taking the time to share this and for outlining the concerns around StellaSwap, @stevenssmithwalker — it’s much appreciated.

The general idea of an acquisition had already been discussed internally within the Treasury Council when StellaSwap’s proposal came up here, prior to this post. We considered it briefly but quickly set it aside, as we do not currently have the in-house capabilities required to operate and maintain a DEX, and doing so would be a significant operational and technical endeavour.

Regarding the concerns raised, a word from @Az_StellaSwapCD would be very helpful.

Any Treasury funding related to StellaSwap will be tied to requirements and expectations. No unconditional funding commitment.

[stevenssmithwalker]

@_yrn it seems the answer to the concerns raised above was to ban the person that raised them from the Discord group, this is self explanatory this is how the StellaSwap team answers the concerns raised by the community. They did this same thing to the people who saw how AethonSwap was unsustainable, they answered by banning them from the group.

[_yrn]

Thank you for letting us know. We’re still waiting for a response from @Az_StellaSwapCD regarding these concerns.

[Raus_George]

You wait to much.Find other solutions…

[jj_Stella]

Hi @stevenssmithwalker,

I am JJ, core team member at StellaSwap. I appreciate the concerns raised here and want to address them transparently, point by point.

Communication Gaps

First and foremost — I want to acknowledge the communication gaps. There’s no sugarcoating it: we fell short on keeping the community informed during a critical period.

Here’s the context: like many projects in this cycle, StellaSwap faced serious runway and treasury constraints. This forced us to restructure the team significantly. During that transition, communication suffered — and that’s on us. We understand that silence breeds uncertainty, and uncertainty erodes trust. We should have communicated the situation earlier, even if we didn’t have all the answers yet. Going forward, we are committed to being more proactive in our communication, even when the news isn’t ideal.

Rewarder / Rewards Downtime

During the team restructuring, we experienced a few days of infrastructure downtime that affected the rewarder. We understand how frustrating it is to provide liquidity and not see your rewards come through on time.

However, I want to clarify: the rewards did catch up. All allocated rewards were distributed to LPs — no one lost their entitled rewards.

UI Bugs

We hear you on the UI issues. Some of these are edge-case bugs tied to specific pool types or position states, and we tackle them on a case-by-case basis as they’re reported. App-wide issues are always prioritized and addressed immediately.

We encourage users to report bugs through our Discord support channel so we can reproduce and fix them. We’re a leaner team now, but we’re working through the backlog and resolving tickets as they come in.

TVL Decline

The TVL decline is real, and there are a few factors at play:

1. Market conditions— the broader market downturn has affected TVL across DeFi, not just StellaSwap.

2. End of Polkadot incentives — when the DOT reward programs ended, mercenary capital moved on. This was expected and is a pattern seen across every incentivized protocol.

That said, our philosophy has shifted. We believe in attracting usable TVL— liquidity that generates real trade volume — rather than chasing inflated TVL numbers with low utilization. High TVL with low volume means LPs earn nothing and leave anyway. Concentrated, efficient liquidity that generates meaningful fees is what makes a DEX profitable and sustainable for LPs long term. We’d rather have $500K in TVL that’s actively traded against than $10M sitting idle.

AethonSwap

AethonSwap was a bet. We wanted to expand our offering and diversify the treasury’s revenue streams. Unfortunately, it didn’t work out as planned. We learned from it, wound it down, and have since refocused our efforts entirely on StellaSwap. Lessons were learned, and our full attention is back where it belongs.

Banning Community Members

We do not ban users for raising concerns or giving critical feedback — period. Our moderation policy only acts on scam links, spam, or clear violations of our Discord community guidelines.

@stevenssmithwalker — if you were banned, it may have been an action by a previous moderator during the restructuring period, or it could have been an automated action by our anti-spam bot. If you can share your Discord username, I’m happy to look into the logs personally and resolve it. Constructive criticism is welcome and valued — we have no interest in silencing our community.

On the Acquisition Proposal

I appreciate the sentiment behind the proposal — it shows how much the community cares about StellaSwap’s future, and that means a lot. However, StellaSwap will continue to operate independently. We’ve restructured to go lean and sustainable, focusing on what matters: a functional, reliable DEX for the Moonbeam ecosystem.

As @_yrn from the Treasury Council noted, running a DEX is a significant operational and technical undertaking. We believe the best path forward is a focused, independent StellaSwap team that works closely with the Moonbeam ecosystem — not a transfer of ownership.

Where Things Stand

To show this isn’t just words, here’s what we’ve already been working on:

• stDOT resolution— stDOT withdrawals were blocked due to the Polkadot relay chain migration. We’ve resolved this, and we’re in the process of sunsetting stDOT in an orderly manner.

• Infrastructure migration — we’re migrating our backend infrastructure to a more sustainable and reliable setup, reducing the risk of the kind of downtime we experienced earlier.

• Community support — we’re back to responding in Discord and resolving support tickets one by one.

• Operational sustainability — the team restructuring, while painful, positions us to operate sustainably for the long term rather than burning through runway.

We hear the community. We know trust is earned through consistent action, not promises. We’re putting in the work, and we ask for your patience as we continue to stabilize and improve. StellaSwap isn’t going anywhere — we’re here, we’re building, and we’re listening.

Thank you to everyone who continues to support and believe in this project. The community’s loyalty through tough times is not lost on us.

— JJ, StellaSwap Core Team

[stevenssmithwalker]

@jj_Stella I am glad the core team finally decided to listen and work along the community, the community was eager to help but the team didn’t communicate, even some members suggested financing the dev team from the community pockets to keep financing the operations.

I hope this marks a new chapter where the community and the team cooperate for the success of Stellaswap.

I also wish to ask what is the stGLMR current situation given that depositing GLMR to get vGLMR is currently disabled on the LSD section, if this product will keep being supported or if it will get suset like the stDOT product.

My banned username is

Stevex

stevenssmithwalker

[jj_Stella]

@stevenssmithwalker — thank you, and I’m glad we’re on the same page. We want this to be a new chapter as well.

It’s genuinely encouraging to hear that community members were willing to contribute to keep operations going — that says a lot about this community. Down the line, we’re open to exploring governance-driven models for this kind of involvement. That said, there still needs to be someone responsible for maintaining the infrastructure after any governance vote is executed, so it’s something we’d need to structure carefully. But it’s on our radar.

Regarding stGLMR — it’s staying. Unlike stDOT, it’s leaner, more maintainable, and profitable for us, and it aligns directly with our Moonbeam-only focus. Deposits have been resumed — they were only blocked on the UI side and that’s been fixed now.

As for your Discord ban — I looked into it and your account (Stevex) was flagged and blocked by our anti-spam bot Wick due to “Account Suspicious.” This wasn’t a manual ban by the team. I’ve sent you an invite to rejoin the server — you should have it now.

— JJ