Hi, Balancer community,
I’m Théo, core-contributor at mStable.
mStable is a Decentralised Stablecoin Ecosystem composed of a capital-efficient AMM and a high-yielding savings account product.
I am reaching out today to discuss a partnership opportunity arising from the upcoming launch of our Emission Controller.
mStable is about to release its version of the Gauge controller, inspired from Curve’s, which will dictate rewards distribution over the next 5 years (~35m MTA).
As we speak, two Balancer pools are receiving MTA rewards:
- One on Mainet [MTA / WETH Balancer pool]
- One on Polygon [MTA/WETH/WMATIC Balancer pool]
Balancer & mStable have been maintaining a long-standing relationship: mStable was one of the first user of Balancer in August 2020 and had the biggest pool at some point there.
We thought it would be highly beneficial for Balancer to take on an MTA position and vote for those pools, thus directing higher rewards that will inevitably attract more liquidity to the pools.
This is an opportunity to go a step further with shared governance and treasury diversification while bringing significant extra TVL to Balancer. It is also a nice way to do a joint marketing campaign highlighting both protocols
We see several options to do this:
- Buy MTA on the open market
- Buy discounted MTA through the current Olympus Pro Bonds offering
- Contemplate a DAO<>DAO token swap for the purpose
- mStable will be emitting 35m MTA over the next 5 years. The amounts redirected per pool will be proportionate to votes
- Balancer could opt to stake their MTA. They would be then eligible for subsequent boosts in MTA rewards, following this scheme. In addition, staking would give Balancer the opportunity to become a delegate and get some additional votes (i.e extra MTA reward) due to Balancer strong brand awareness in DeFi.
- In the case of a swap, the MTA from the mStable Treasury DAO would be exchanged for the equivalent USD value of BAL, using the 20 days smooth moving average price at the time that voting ends. Currently 1 BAL = 13.6 MTA. Price feed will be [[BAL/USDT] (Chainlink) and [MTA/ USD (Chainlink)
- MTA is cheap and when the launch of the Emissions Controller will lead to a lot of competing interests. Getting an early exposure to MTA right now could be a smart economic bet
- The 500k MTA / Olympus Pro-Bond Program will expire in 6 weeks. It’s an ideal opportunity to buy some MTA at a discount
- The Convex /Curve way of getting inflation is becoming very competitive and unaffordable. This would be a cheaper way to make pools more attractive
Happy to hear your thoughts about this and answer any questions you might have