[Closed] Proposal to end the remaining 5:95 rewards and move to a 50:50 mta:mUSD pool

I created a pool at https://pools.balancer.exchange/#/pool/0x6d21cfc90a384d92f6bc3aec5e0eb55e7f25f498/

Here are the details:

50% MTA 50% mUSD
0.01% swap fee
BAL-APY 26.47% with no other factors

I propose to move the 15k rewards from the 5MTA:95mUSD pool to the new 50mta:50mUSD on Balancer with 0.01% swap fees.

The minimal fee is in the spirit of providing liquidity and the rewards on this pool will cause liquidity reallocation from the 5:95 to other pools, since there will be no more rewards on it. This action should help preserve price/value of the $mta token, and a possible price reversal based on maths from the underlying DEFI protocols.

This is due to the 5% MTA weight in the 5/95 mta/mUSD pool with over $5,000,000 in liquidity and I have argued this point on discord.

In order to have a smooth, logical plan to move forward, let’s just keep it a simple, feasible step in the right direction and start with this?

Pool stats:

I think this should be priority 1… It is feasible and needed.

The other proposal to re-evaluate all is needed too, but let us stop the bleeding 1st.

I requested to end my other discussion and focus on this. Here is my reply to someone who “likes” the 5:95…

Then you have no idea how defi pricing is established and why a $5.5m pool with $5,250,000-mUSD : $275,000-MTA is killing the price.

Weight1Ă—TokenSupply1 = Weight2Ă—TokenSupply2 and price only changes when orders execute.

The 95:5 weight on a pool that is 125% of the mta market cap is certainly going to drive the price to. <$0.30 as more trades occur… Especially the VC dilution and the selling.

Creating the 50:50 for you all was a gift from me for you to fix it. 0.01% fee… It is an LP rewards pool.

Removing rewards from 5:95 will leave that pool with 5% apy.

15k on the 50:50 will be over 104%. (26% balAPY+MTAapy)

This forces smart LPs to pool hop (and with a 90 day rewards guarantee before any changes on that pool, is better yet) and effectively sell 90/95 mUSD to MTA to make the 95mta:5musd LP pair.

So about $4.5m (2x mta mktCap) could move to the 50:50 rewards pool and adds the buy pressure back.

50:50 has 0 slippage and fair/high IL so rewards are justified.

Rewards on the 5:95 is inappropriate… No risk, easy rewards, dump pool.

End this topic and go to:

Personally, while I like the proposal to end the 95/5 pool, I’d like to clarify how you derived your assumption when you said

So about $4.5m (2x mta mktCap) could move to the 50:50 rewards pool and adds the buy pressure back.

Also, other than adding MTA buy pressure back, what other utility would this new 50/50 MTA/mUSD pool serve?

1 Like

Ir has to do with the underlying math.

But it doesnt matter.

This is no longer the best solution in my unprofessional opinion.

My updated proposal

I have been vocal about re-allocating the 5:95 pool (and stand firm to the math weight issue) but have an alternate proposal (from my wife)

Reduce he 15k 5:95 rewards to 7.5k and add 7.5k to the 95:5.

At current prices the 15k mta on the $4m pool it earns like 0.18% apy? (($1.16 Ă—15000mta)/$4000000)Ă—52 weeks

So 7.5k would be less apy.

But the 7.5k on the 95:5 pool with $131k liquidity would be ($1.16 Ă— 7500mta)/$131000 Ă— 52 weeks = 345% apy.

THAT would allow the market to resolve itself and not polarize the community on handling it.

We’ve heard the community loud and clear, mostly via Discord and Telegram, on the first portion of this proposal – to stop rewarding the the remaining 5 MTA/95 mUSD EARN pool. A Snapshot poll will go live 6 November 2020 along with others.

Cool. So this is for ending rewards on 5:95.

For the sake of clarity, is the balancer pool re-allocation expected to be a part of the series of voter related topics nov 6?

I think the best summary of my proposal is here:

Admin replied on telegram:

**Yes, it will be a multi-step vote.

  1. Wind down - yes or no.
  2. If yes, where to re-allocate (don’t re-allocate, re-allocate to other pools, re-allocate to staking); these options could change depending on what people say between today and next Friday.**

Closing this thread.