Terraswap: Improving Terra-Luna Pool LP incentives discussion

Currently, liquidity providers to Terra-Luna pools on Terraswap are only compensated with the 0.3% trading fee which can only be realized by later withdrawing liquidity from the pool. This provides unstable incentive for LPs to deposit their tokens as inevitable characteristic divergence loss (aka “impermanent loss”) when the price of Luna changes. Any ideas for creating better mechanisms (such as yield-farming dApps or governance mechanisms) that generate further value and utility from Terra-Luna LP positions are welcome here.

The solution space will be in apportioning luna grants for luna:xyz coin pools. Xyz coins should be “well performing” in order for luna to benefit from their price appreciation (or visa versa)