[Discussion] Lower and redirect rewards on the WETH/mUSD Balancer EARN pool

Summary:

Proposal to lower rewards on the WETH/mUSD Balancer pool since Balancer hops are live now. The rewards could go elsewhere, for example, into incentivizing staking.

Abstract:

Balancer hops which went live on 25 Aug now allow an interface for multi-path and smart order routing where a trade can jump between multiple pools if there is not a direct pair with lots of liquidity. This means that the 50/50 USDC/mUSD pool can now provide the interface for x/weth > USDC > mUSD swaps and there is reduced need for a WETH/mUSD pool, and the incentives for that pool can be directed elsewhere, for example, to the staking contract or to the 95/5 mUSD/MTA pool.

Motivation:

There have been discussions in the community to identify ways to sustain staking and making it attractive. MTA Rewards for providing liquidity in pools have to be considered in respect of the long-term goals of the platform and capturing value for MTA holders.

Pros:

  • Moving the rewards to 95/5 mUSD/MTA pool will still increase mUSD TVL
  • Moving the rewards to staking will improve the value capture for MTA holders

Cons:

  • Winding down pool rewards too quickly

Would love to hear the community thoughts on this matter.

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