Proposed by community member @Leg to provide MTA staking subsidy to give mASSET savers all of mStable platform revenue while MTA stakers - who are investing in the growth of mStable - get MTA rewards.
There have been several discussions on how the fees should be distributed between stakers and SAVE users.
MTA stakers will eventually get a portion of platform revenue from fees and bAsset lending interest. But while MTA distribution is still active, I think a reasonable way to split MTA emissions is to drop MTA to stakers and liquidity pools, while mAsset savers get ALL platform revenue.
mStable users that hold mAssets are most likely people that are interested in high, safe returns on their overcollateralized holdings, not speculators that want high returns on specific trades or even LP risking IL. The best way to entice more such users is to syphon all platform revenue to mAssets in SAVE.
Now, what about MTA stakers? Well, MTA stakers are the ones investing in the growth of mStable. They are happy to hold MTA despite lock up, risking partial/full liquidation and participating in governance. Who better to get MTA rewards than them?
This may not seem like much of a change from what was going to be implemented anyway, but here’s the difference. Once recoll is live, stakers earnings should still come from MTA emissions, and not from fees. I think it’ll be a net benefit to inflate SAVE APY to get TVL up. Is this only a temporary solution to hike SAVE APYs? Yes. But if we can sustain the highest SAVE APY for an extended amount of time, enough to lock up a decent amount of TVL, other projects will be more willing to integrate mAssets into their protocol. If we have great mAssets but low TVL, why make the effort? Great mAssets and sky high TVL, and that will turn heads. Important to push for adoption while we do have high SAVE rates btw, I don’t believe in passively waiting for stuff to fall off the sky.
To sustainably grow TVL and reward stakers for taking part in governance or securing the system
- High APY for mASSET savers who are interested in high, safe returns on their overcollateralised holdings
- MTA holders can invest in the long-term growth of the platform which include getting more projects to integrate mStable