[Discussion] Offer a swap fee discount using MTA

Summary:

Proposed by JS of the mStable Core team to allow users to pay for swap fees using MTA and give them a 50% discount for doing so.

Abstract:

The fees could be moved into two places, either burned out of circulation or sold for bASSET to bolster APY.

Burning MTA would be easier to implement and reduces supply for MTA, which is good for MTA price and good for system security once recollateralisation is up

Negatives include reducing the APY for savers and moves away from the model where SAVE is the end goal

1 Like

Two school of thoughts - and it goes back to how to distribute platform fees, whether it should go to stakers or boost SAVE APY.

Mentioned by @notreallyleg - by selling the proceeds to bolster SAVE APY, 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.

This may or may not be a good idea but I think the added gas costs to complete a swap transaction would not be worth it. At least for the time being we need to keep the number of gas units needed down to an absolute minimum (for end users especially).

I think generally we should be pushing the APY as high as possible. it should be the killer feature of mstable, that all income drives the savings rate, and forever increases the supply of mUSD.

That said, I like the BNB model of driving utility into the token continuously and offering incentives to do that.

In other words, kind of on the fence still! Interested in ideas.

1 Like