I bought 2k MTA @ $1.60 on technical analysis and confidence in the project from due diligence. My intention was to catch the bounce and buy into the 50/50 mta/musd pool with more MTA in order to offset future impermanent loss and capture rewards.
I decided to vest into the 95MTA/5mUSD pool in order to suffer minimal impermanent loss and facilitate simple pool to pool re-liquidation.
The price kept sinking and then I read that this naive community allowed governance to ruin the price (not value) of the MTA token due to how prices are established on defi protocols.
There are 3 balancer pools for MTA with rewards:
50/50 weth/musd (20k mta rewards)
5/95 mta/musd (15k rewards)
50/50 musd/usdc (10k rewards)
Excuse me but what the fud. If you incentivize the balancer pools with a 5:300 ratio to 245(musd+usdc) stable, 50 solid, and 5 LP rewards token, you are basically saying that the MTA proportional value is negligible (<2%).
Additionally, when people buy into the juicy 5MTA/95mUSD (negative risk, high reward), buyers who pay with MTA interest are continually selling 100MTA weight to buy into a 5MTA weight 95 MTA weight pool… removing risk (you earn 5%-10% mta/month so the 5% risk paired with 95% stable is less than 0). This is effectively selling 95% of the interest to buy mUSD and does nothing to help the community.
My proposal is to end the 15k rewards immediatly on the 5/95 pool and place them on the 95MTA/5mUSD pool for the same number of weeks that this fiasco has been damaging the price/value ratio of the MTA token.
Afterwards, end the 3 balancer pool rewards (45k) and put on a 20/20/20/20/20 MTA/mUSD/WETh/USDC/BAL pool. Yes… the same 4 coins as before but add the Balancer Protocol to the pool.
This will add the BALFACTOR (2x interest on the bal/weth bal/mta bal/mUSD and bal/mta pairs) and the pool will earn close to 80% BAL apy if the fee is near 0 (so like 0.05%… this also makes better liquidity) IN ADDITION to the 45k MTA rewards.
It also adds the ETHFACTOR to the weth pairs that did not exist before.
This gives the mStable community access to holding equal ratios with good rewards AND vote on the Balancer protocol too (pooled BAL can be used to vote). Furthermore, Balancer LPs who wish to sell BAL can buy into the 5x20 pool directly with their rewards.
It also simplifies the choice of “which pool” and stops daytraders from “pool hopping” … mStable should be… stable.