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

Governance Completed
#1

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:

[Closed] Re-vote about all pool and give it legitimacy of governance
#3

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.

[Discussion] for an Ex-Parte Propsal to FIX Balancer Pool weights and STOP allowing governance to manipulate it
#4

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:

#5

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
#6

Ir has to do with the underlying math.

But it doesnt matter.

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

#7

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.

#8

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.

#9

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:

#10

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.**
#11

Closing this thread.

#12