Starknet Foundation Introduces: The Start of DeFi Spring

Resources

• A list of participating protocols can be found here. 
• See the first live quest here: https://www.intract.io/starknet
• Starknet Foundation tweet of a list of all live programs here: https://twitter.com/StarknetFndn/status/1759567375370772507

Introduction

On 9 November 2023, the Starknet Foundation announced the appointment of its DeFi Committee tasked with the mandate of growing DeFi on Starknet. 

After two months of internal and external research, the Starknet Foundation is excited to announce the launch of a tailored program designed to meet these goals.

In connection with OpenBlock Labs, the Starknet Foundation is excited to announce the launch of Starknet DeFi Spring – a six to eight month program where 40M STRK will be distributed to participating DeFi protocols on Starknet.  

This is the first in a series of next steps by the DeFi Committee towards scaling DeFi on Starknet. This first program focuses on liquidity provisioning.

Part I: STRK Distribution 

The DeFi Committee plans to distribute 40M STRK in total across six to eight months to participating DeFi protocols on Starknet. An additional 10M STRK (at least) has been reserved for future programs that focus on volume, transactions, grants, incubation programs and more!

To execute on this plan, the Starknet Foundation has partnered with OpenBlock Labs to design a program for the fair & equitable distribution of STRK tokens to participating DeFi protocols.

How protocols will get STRK

Protocol distributions are determined and distributed every two weeks.  At the end of each period, allocations will be made based on a review of the network’s activity and the participating protocol’s compliance and performance.  The allocation is dynamic and allows continuous adjustment based on performance metrics, ensuring alignment with the evolving needs and contributions of protocols within the ecosystem.  

This program is expected to last until October 2024 with eligible protocols across DEXs and the broader DeFi ecosystem.  

A list of participating protocols can be found here. 

How users will get STRK

Using these distributions, each participating protocol will design, announce and execute an incentive program to reward participating users on their platform with their allocation of STRK.  

Participating protocols will distribute all the STRK they receive to their users.  Each protocol will be responsible for their own distribution of STRK and may have different programs for how and which users will be able to earn STRK. 

The first round of participating protocols will begin their programs on 22 February 2024, with users being able to claim their allocation of incentives from the protocols by 7 March 2024. 

For details on how to participate, follow specific communications from each participating protocol. 

A list of participating protocols can be found here. 

Part II: Quests

To celebrate the start of Starknet DeFi Spring, the Starknet Foundation is launching a Quests campaign with Intract in order to welcome new users into Starknet’s growing DeFi ecosystem!

Quests are on-chain tasks that users can complete.  A new quest will be released every second day up until 22 March 2024.  

In total, there will be 15 quests that users will be able to complete and earn experience points (XP) for doing so.  

To award users that complete these tasks, the Starknet Foundation has worked with IMCMPLX, the creative artist behind 0n1Force, to design four unique artworks as an NFT reward for users as a proof of completion.

These will be the only rewards tied directly to the completion of Quests.  

However, Quests will be live during Starknet DeFi Spring and will include participating protocols that have live incentive programs.  By completing Quests, users may be able to earn STRK through the independent programs run by participating DeFi Protocols. 

Part III: What’s to come? 

The DeFi Committee has reserved at least another10M STRK in its budget for new initiatives later in Q2 or Q3 of 2024.  It is currently considering programs such as DeFi hackathons, new project grant programs and short term incentive programs.  Stay tuned for more updates! 

FAQ

How will STRK distribution work? 

• The Starknet Foundation will work with OpenBlock Labs to determine STRK allocations to participating protocols every two weeks.  The protocols will then in turn be responsible for distribution to their users.

I am a protocol, how can I take part in Starknet DeFi Spring? 

• If you’re a protocol and would like to take part in Starknet DeFi Spring, reach out to the DeFi Committee at defi@starknet.org. 

I am a user, how can I earn STRK as part of Starknet DeFi Spring? 

• If you’re an individual and you would like to earn STRK during Starknet DeFi Spring, you will need to explore the individual participating protocols and their terms of use to see how you can earn STRK through their programs.  

I am a user, how do I know if a project is a participating protocol in Starknet DeFi Spring and will be distributing STRK rewards? 

• A list of all active participating protocols can be found here. 

I am a user, how do I participate in the Quests? 

• You can complete Quests on Intract’s platform: intract.io/starknet

What date will Users be able to claim their first STRK rewards? 

• Users will be able to claim their first STRK rewards on Thursday, 7 March 2024 directly via participating protocols. 

Which protocols are participating in this Program? 

• A list of all active participating protocols can be found here.
• Starting 22 February, DEXs are eligible to participate. 
• Starting 7 March, Borrow & Lend protocols are eligible to participate. 
• Starting 14 March, Options & Perps protocols are eligible to participate. 

What happens if I don't claim my STRK?

• You will be able to claim STRK natively within each participating protocol.  Any unclaimed STRK at the end of Starknet DeFi Spring will be returned back to the Foundation. 

Are the Quests / DeFi Spring linked to the DeFi Incentives?

• Starknet DeFi Spring is the entire six to eight month period where incentives will be live.
• Quests on Intract are a separate initiative designed to guide the user to explore where incentives are live during Starknet DeFi Spring.
• The Starknet Foundation has worked with IMCMPLX, the creative artist behind 0n1Force, to design four unique artworks as an NFT reward for users that complete Quests.

Which pairs will incentives apply to? 

• Incentives are determined by participating protocols, please visit their individual programs to see which pairs have incentives live.
• On a per protocol basis, the total amount of incentives allocated is calculated based on the protocol’s depth of liquidity for the following pairs:
• • STRK/USDC
  • ETH/USDC
  • ETH/STRK
  • USDC/USDT
  • more pairs will be added in the weeks to come

The protocols themselves determine through their own programs how these incentives will be allocated to their users.

About the Starknet Foundation DeFi Committee

Established in November 2023, the DeFi Committee was introduced with the purpose of fostering the growth of DeFi on Starknet.  The Committee aims to solidify Starknet as the preferred choice for DeFi developers and users.  Its success will be measured via key metrics, like total value locked (TVL) and daily trading volume, alongside supplementary measures like spread, depth, and availability of liquidity. 

The Committee has been allocated a total of 50 million STRK.

About OpenBlock Labs

OpenBlock Labs is a quantitative research firm specialising in organic and sustainable ecosystem growth by providing data analytics and modelling to ensure that the chain is growing with real users. 

OpenBlock Labs will lead the recommendations and analysis of STRK token distributions.  The collaboration emphasises a systematic periodic fund allocation, driven by performance metrics and network activities.  Regular audits and monitoring further ensure data accuracy and compliance.

About Intract

Intract is a Web3 questing platform that links verified on-chain users with the Web3 communities and projects they seek.  It prioritises matching quality projects with its users, while ensuring these projects can gain access to engaged and informed participants.

Important Disclaimers & Disclosures

The following disclaimers and risk disclosures apply: 

• The DeFi protocols mentioned in this blog post are independent from the StarkNet Foundation and are not owned, operated or controlled by the Starknet Foundation.
• Users who engage with DeFi protocols do so at their own risk and subject to the terms and conditions (T&Cs) set forth by each respective DeFi protocol.
• The StarkNet Foundation does not endorse or recommend any specific DeFi protocol.  Users are encouraged to conduct their own research and to exercise caution before engaging with any such protocol.
• Users are solely responsible for their own decisions and actions and assume all risks associated with utilising the respective DeFi Protocols.
• Users should be aware that DeFi, as a category, involves inherent financial risks, including the potential for total loss of invested assets.
• The Starknet Foundation disclaims any and all liability for losses that users may incur through their use of DeFi protocols. 
• Users are responsible for complying with any applicable laws, regulations, or restrictions governing their use of DeFi protocols.
• The information provided in this post is for informational purposes only and should not be construed as financial advice.  Users should consult with a qualified financial advisor before making any investment decisions.