To wind down 95/5 MTA/mUSD EARN pool - which was used as a proxy to staking.
Staking V1 was announced on September 25 which provides a way for Meta holders to stake their MTA and earn both governance and earning power.
EARN pools are a key source of secondary market liquidity for mUSD and MTA where they help to facilitate trades outside of mStable especially for small transaction values where it might be cost-prohibitive. It is important for us to keep and incentivize this secondary market liquidity.
Balancer Pool Liquidity/Volumes:
Both 50/50 pools (i.e. WETH/mUSD and USDC/mUSD) are important sources of Balancer liquidity as seen from their trade volumes. One proposal would be to shift the rewards from the 95/5 MTA/mUSD pool into these pools with higher utility. For a start, 5K to each of these pools over two weeks until it’s fully winded down.
The other alternative is to simply not reassign these rewards to reduce sell pressure on MTA now that staking is live.
Would appreciate all thoughts, discussions and opinions - would put this through Snapshot for Meta holders to vote, hopefully, before next week’s EARN pools are funded.
As above, MTA staking is now live.
- Remove 95/5 MTA/mUSD and move rewards to mUSD/USDC and mUSD/WETH
- Remove 95/5 MTA/mUSD and not reassign rewards
- Remove 95/5 MTA/mUSD and move rewards to staking