[Discussion] Create G-UNI mUSDC/USDC pool for mStable

Proposal:

Add an earn ecosystem pool for mUSDC/USDC pair that is powered by G-UNI.

Abstract:

G-UNI is a fungible (ERC20) wrapper around an LP Position on a Uniswap V3 trading pair. Fees earned by the position are automatically reinvested into the position by Gelato automation for compounding effects. Liquidity is added into the G-UNI Pooled Position and G-UNI tokens are minted. These G-UNI tokens have the ability to be staked into liquidity mining programs such as mStable’s ecosystem pool program to earn MTA.

Technical Details:

G-UNI mUSDC/USDC will be a fixed range position that does not change. At first, the pool will be managed by the Gelato multisig but will be handed off to the mStable team shortly after.

Example G-UNI mUSDC/USDC specs

Fee Tier: 0.05%

Position Lower Bound: 1 mUSDC = 0.9901 USDC (tick = -100)

Position Upper Bound: 1 mUSDC = 1.0101 USDC (tick = 100)

Benefits:

The G-UNI user-experience is simple and intuitive. It essentially turns Uniswap v3 into v2 again from a user perspective. No need to actively manage positions, just “set and forget”. Also, liquidity is aggregated from a wider pool of users who would otherwise not use Uniswap v3, increasing the size of it overall. Furthermore G-UNI helps boost FOX’s Uniswap v3 oracle standing and accuracy making it more attractive in being added to DeFi lending protocols in the future.

Drawbacks:

G-UNI is a third party service and although there is always a risk of smart contract failure, hacks, etc, G-UNI has been audited multiple times including by Certik and has been battle-tested on mainnet for months now.

Closing Thoughts

We welcome any feedback you may have! The Gelato team will be here to help every step of the way in the onboarding process. Thank you again for the opportunity to present my proposal to the forum.

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Keen for a G-UNI pair of some sort. I know that the DAO has just approved the incentivisation of a managed visor finance LP position for MTA-ETH though.
mUSD is lacking liquidity outside of Curve/mStable and this could be a good way to start, I am keen for an MUSD-[stablecoin] pair on v3 with G-UNI.

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Interesting! Could be a great way to get mUSD liquidity on Uniswap.

Could also consider mUSD/DAI

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I am open to either mUSDC/USDC or mUSD/DAI. Fei for example recently approved a FEI/DAI pair for their liquidity mining program.

I could run a straw poll to see what everyone’s preference is. Would just need to upgrade my level in the forum if that is possible.

I really find this concept intriguing. However, I am not sure how this would benefit mStable or mUSD? Technically we should already be able to offer mUSD to USDC or to DAI swaps within our platform with really low slippage.

But, this could be useful for bootstrapping a Uniswap oracle? It would require us to incentivise though, otherwise I am not sure we can get a lot of liquidity unincentivised.

Yes exactly, because G-UNI is built to be easy to interact with, it can source liquidity from a wider range of sources. This results in both lower slippage as well as be very useful in bootstrapping a Uniswap oracle and get mStable higher on that leaderboard. In fact, this point was brought up in our proposal with Fei Protocol two months ago (https:// tribe.fei.money/t/fip-25-a-case-for-directing-tribe-rewards-to-g-uni-pools/3459/9).

@Dimsome what would be the next steps from here to create a more formalized proposal?

Thanks for getting back on this. The next step would be indeed to draft a formal proposal and submit it for the DAO to ratify before moving to a public snapshot vote.

However, I am not certain we achieve a common consensus yet. So far it seems an intriguing idea, but we need to discuss the details and how it fits into the mStable Protocol.

  • What Pair should we consider
  • How much incentives should we use
  • Where do these incentives come from

Without any incentives, this would be probably not much of use? And we are currently trying to curb MTA inflation.

I’d also be interested to hear what differentiates G-UNI from Visor Finance in particular. I think diversification is always something to strive for, but perhaps you can make it easy for us and list some key points to make the next steps further down the line easier to evaluate and consider?

Happy to see more protocols interested in mStable, and looking forward to seeing this unfold! :sunglasses:

Great Question,

The primary difference comes down to our approach to managing Uniswap v3 positions. G-UNI is an unopinionted framework that allows for customization based on end-user preferences such as deciding who manages the pool (team, multi-sig, smart contract, renounced completely). Visor on the other hand, has an active role in management and takes a fee of 10%.

The only two things that G-UNI does is make the position fungible and auto-compounds fees. In addition, there are no fees for minting and burning, a 1% fee from fees claimed, and a transaction fee to recoup the Gelato executor for gas costs on every automated transaction (such as a rebalance).

For deciding which pair, I think a straw pool would be sufficient. I would need to be promoted in my current profile in order to do this.

In terms of incentives, is there somewhere where I can get a breakdown of what the current emissions rate looks like and where they are directed? It would help me answer this question more clearly.

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You can find a breakdown of the currently proposed emission here: PDP 31: MTA emission and distribution pre Emission Controller launch

Once we launch the emission controller, we might be able to allocate easier ad-hoc opportunities.

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Cool, it may be best to wait for that.

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