Hey Narok! Thanks for your feedback. I would like to address each of your point individually.
The vote toward VST-FRAX has been consistent. The declining APR is likely due to
VRR should fill the required emission if the capacity cap is implemented. For example, at current VST market cap and mint distribution, it should return roughly 88k in total annual VRR, which would still cover the 7% return requirement. To simulate expected VRR please visit this file: VRR Simulation - Google Sheets.
The program intends on attracting liquidity with low-risk appetite. We do not want to attract liquidity that chase after high yield as those indeed would fleet immediately after APR come down. This is why we structured the APR cap and also capacity cap to ensure that we can always guarantee not a extremely high APR but a sustainable APR that’s in line with market expectation.
Vesta is currently incentivizing VST-FRAX LP heavily through a deal that is extremely favorable to Vesta (see this passed proposal). Partnering with other LP would increase VSTA emission, which could increase selling pressure. It would also set up LPs that quite possibly no one would end up using. Rather, a single-sided VST pool would encourage people to take VST away from the LP. A section in the top post in this topic has discussed on this point.
On the other hand, we are working on a staking module that would enable further VSTA emission. The model is inspired by Andre’s options liquidity mining program and further gamified. We expect this program to drive further LP.
Regarding adding VST as a collateral to other lending protocols - that’s something we are working on as well. Many lending protocols require a Chainlink oracle - we are working on meeting the integration requirements. I’m also working on a proposal to have VST be integrated in Radiant.