Author: Terraport
Proposal Type: Community Pool Spend
Status: Draft
Date: 18th, April 2025
Receiver: terra132qeqedz0yztuztj0rjav4rzlkashpsdxsmh64jpgp2ul0wdlkzquzvln6 (Multisig Wallet Outlined by Proposal 12171)
Self Presentation
Terraport is an autonomous DeFi platform using smart contracts on the Terra Classic blockchain and based on a circular economy model capable of infinite self-sustaining. The entire ecosystem is powered by a native deflationary token called $TERRA, which will be used to access various features of the platform.
Terraport’s goal is to bring utility to the entire Terra Classic ecosystem and make DeFi accessible to everyone. You can receive daily rewards in different ways while burning $LUNC in an automated system handled by users.
You are be able to access directly from your DeFi Wallet without registration or KYC verification. Unlike CEXs (centralized exchanges) like Binance, KuCoin or Coinbase, Terraport doesn’t hold your funds when you trade: you have 100% ownership of your cryptocurrencies. Thanks to the Liquidity Pools, you will never have limits or interruptions, so you can trade 24/7.
Terraport was born to be a safe and anonymous place for users to trade, earn and invest funds.
- Decentralization: Terraport is controlled by Governance, collectively all users who have an interest in the growth of the project and own $TERRA.
- Security: Terraport smart contracts are audited by CertiK, to ensure that everything is running properly as described in the White Paper.
- KYC: The team also passed CertiK’s institutional KYC process achieved the Gold badge in 2023
- Bug Bounty: Terraport is enrolled in CertiK’s Bug Bounty program.
Summary
This proposal requests a total of 25,000 USDC and an equivalent $25,000 worth of LUNC from the Community Pool to seed liquidity for a USDC/LUNC pair on Terraport, a DEX operating on the Terra Classic blockchain. The requested amount aligns with the phased liquidity framework approved by the community (proposal 12171) and is intended to match the centralized liquidity depth of ~±2% at ~$50,000 total liquidity. All funds will be deployed through the established multisig process outlined in the proposal 12171, and liquidity will be deployed with full community ownership and governance oversight as per proposal 12171.
Motivation
The Terraport DEX currently lacks a stable trading pair for LUNC, resulting in:
- Increased reliance on centralized exchanges for stable conversions.
- Fragmented liquidity and slippage for users and DeFi protocols.
- Inhibited development of lending, borrowing, and arbitrage opportunities on Terra Classic.
- Deploying a native USDC/LUNC pair on Terraport directly addresses these problems by contributing to decentralized liquidity depth, enabling seamless DeFi interactions, and supporting platform-level volume growth.
Request Details
Please make note of the following details regarding this request:
- USDC Requested: 25,000
- LUNC Requested: Equivalent to $25,000 at the time of distribution
- Recipient: Multisig escrow wallet established per the passed liquidity framework proposal 12171 (TBA)
- Liquidity Deployment Site: Terraport DEX
- LP Tokens: Sent to Terra Classic Governance wallet upon creation
Execution Details:
Execution will follow the phased process outlined in the approved liquidity framework:
- Funds are distributed in installments via multisig-managed transactions.
- Swaps into USDC are done through CEXs or cross-chain swap providers such as simpleswap.io, with no more than $2,500 under management at any time.
- Bridged USDC is returned to the multisig wallet on Terra Classic. Liquidity is deployed into a new LUNC/USDC pool on Terraport, with equal parity.
- LP tokens are transferred to the governance wallet for full decentralization and accountability.
Please, make note of the fact, that at no time Terraport will be in control of the liquidity. The community will have full control over these funds, first via the deployment committee outlined by proposal 12171. Later on the deployed LP will be controlled/owned by the Terra Classic governance account for full decentralization and accountability and community oversight
Eligibility Requirements Met by Terraport
Terraport meets the eligibility requirements outlined by Proposal 12171:
- Platform smart contract audited
- Core team KYC’d
- Proposal subject to community approval and multisig oversight
Value to Terra Classic
Injecting liquidity for LUNC/USDC on the biggest decentralized exchange can bring numerous advantages for the whole ecosystem:
- Improved DeFi utility for LUNC through stable on-chain pairs
- Increased TVL and DEX trading volume
- LUNC burns and tax revenue through organic volume
- Support for cross-chain arbitrage with CEX pairs
- Strengthened ecosystem visibility and participation
- Community Ownership Assurance
As with all proposals under this framework:
- Liquidity and LP tokens remain 100% community-owned
- Multisig custodians act voluntarily and transparently
- No individual or entity will profit from this request
Deployment Pool
We are formally requesting the oversight team to deploy liquidity into a Terraport V3 pool. This pool maximizes capital efficiency by providing the liquidity into a price band around the current price point. Liquidity will be dynamically auto-shifted into new ranges as need by market conditions. This type of pool also has the lowest swap fees on the platform (0.2% swap fees allocated for the liqudity provider, 0.1% swap fees allocated for the treasury)
Voting Options
Please, vote accordingly:
YES – Approve funding for a 25,000 USDC + $25,000 LUNC liquidity deployment on Terraport
NO – Reject this proposal and maintain the current liquidity allocation structure
ABSTAIN – Neither Approve nor Reject this proposal
NO WITH VETO – This proposal comprises a governance attack