Author: Terraswap
Proposal Type: Community Pool Spend
Status: Draft
Date: 08/May/2025
Receiver: terra132qeqedz0yztuztj0rjav4rzlkashpsdxsmh64jpgp2ul0wdlkzquzvln6 (Multisig wallet from Proposal 12171)
Self-Presentation
Terraswap is a decentralized exchange (DEX) operating on the Terra Classic blockchain. It allows users to swap assets directly from their DeFi wallets without registration or KYC. Unlike centralized exchanges (CEXs) such as Binance or KuCoin, Terraswap does not take custody of user funds—you retain 100% control of your assets.
- Permissionless Access: Trade directly using your DeFi wallet, no intermediaries.
- 24/7 Liquidity: Powered by community-contributed liquidity pools, with no trading halts.
- Security & Trust: Based on smart contracts thoroughly audited and battle-tested across Terra Classic DeFi.
Summary
This proposal requests a total of 25,000 USDC and the equivalent of $25,000 in LUNC from the Community Pool to seed liquidity for a USDC/LUNC pair on Terraswap. This aligns with the phased liquidity framework approved under Proposal 12171.
Funds will be deployed via the designated multisig process, and liquidity will be governed by the Terra Classic community with full transparency.
Motivation
Currently, Terraswap lacks a stable LUNC pair, leading to:
- Over-reliance on centralized exchanges for LUNC-stable swaps
- Fragmented on-chain liquidity and higher slippage
- Barriers to DeFi protocols (e.g., lending/borrowing) and arbitrage mechanisms
Introducing a native USDC/LUNC pool improves utility, supports DeFi volume growth, and strengthens ecosystem resilience.
Request Details
- USDC Requested: $25,000
- LUNC Requested: Equivalent of $25,000 at distribution time
- Recipient: Multisig wallet outlined by Proposal 12171
- Deployment Site: Terraswap DEX
Execution Plan
🛑 At no point will Terraswap or any private entity control the liquidity. Full ownership and oversight remain with the Terra Classic community.
Ecosystem Benefits
Seeding a USDC/LUNC pair on Terraswap will:
- Enhance on-chain LUNC utility with a stable trading pair
- Increase TVL and decentralized trading volume
- Drive organic tax and LUNC burns through activity
- Enable smoother cross-chain arbitrage opportunities
- Improve user experience across all Terra Classic DeFi protocols
Governance and Community Control
- LP tokens remain 100% community-owned
- No profits accrue to any individual or entity
- Multisig custodians act voluntarily under community transparency
- Funds are handled per the liquidity deployment framework (Proposal 12171)
Deployment Pool Strategy
We propose deploying this liquidity into a Terraswap concentrated liquidity pool, targeting a narrow band around the market rate for capital efficiency. Swap fees will remain low.
Operator Introduction
DELIGHT LABS is a blockchain technology company focused on building secure, scalable, and user-centric decentralized applications. With a proven track record in smart contract development and protocol-level engineering, DELIGHT LABS is a core contributor to Terraswap and an active participant in the Terra Classic ecosystem.
- Core Contributor to Terraswap protocol
- Expertise in smart contract security, Web3 infrastructure, and DeFi systems
- Mission: Advancing open, transparent, and permissionless finance
Voting Options
- ✅ YES – Approve 25,000 USDC + $25,000 in LUNC for liquidity deployment on Terraswap
- ❌ NO – Reject and retain the current allocation structure
- ⚪ ABSTAIN – No opinion
- ⛔ NO WITH VETO – This proposal is malicious or against community interests