✔️ MCCP 23: Disable underutilized dials II

Summary

It is proposed to disable the second batch of underutilized dials in the Emissions Controller as launched with MIP 24 in order to avoid incentivising pools that receive a substantial amount of MTA per epoch but do not contribute effectively to the usage of the mStable protocol and add value by contributing to overall revenue.

Abstract

Dials receive votes from MTA stakers that decide the allocation of newly emitted MTA. Some participants choose to actively shift their allocation while others allocate once and allow it to be dormant. This creates a dynamic in which some of the dials receive fairly few votes from a few individuals that haven’t adjusted their weights in a long while.

The first set of dials was disabled with MCCP 22. This resulted in a much more streamlined emission process by avoiding dust MTA to be sent to illiquid pools.

This proposal seeks to further disable more dials and make MTA emissions more capital efficient.

As per the temperature check results, the proposal will have two alternative choices:

  • Disable most dials but keep:
    • MTA Staking
    • mBPT Staking
    • TreasuryDAO
  • Disabling some dials but keep:
    • MTA Staking
    • mBPT Staking
    • TreasuryDAO
    • imUSD Vault
    • imUSD Vault Polygon
  • Don’t disable any more dials

Motivation

Liquidity mining programs have proven to be ineffective for achieving long term, sustainable growth, resulting in a loss of liquidity when they are ended and a lower token price due to liquidity providers selling the reward token to increase their yield. At the same time, the market conditions have changed, and many protocols are ending these programs. This proposal aims to protect MTA holders capital.

Specification

The following dials are proposed pending the results of the vote are to be disabled in the Emissions Controller (0xBa69e6FC7Df49a3b75b565068Fb91ff2d9d91780) on Ethereum Mainnet:

Dial Destination Network Recipient address Dial Id
imBTC Vault Ethereum 0xF38522f63f40f9Dd81aBAfD2B8EFc2EC958a3016 3
GUSD Feeder Pool Ethereum 0xAdeeDD3e5768F7882572Ad91065f93BA88343C99 4
BUSD Feeder Pool Ethereum 0xD124B55f70D374F58455c8AEdf308E52Cf2A6207 5
RAI Feeder Pool Ethereum 0xF93e0ddE0F7C48108abbD880DB7697A86169f13b 7
FRAX Feeder Pool Polygon PoS 0x38dD64B51C1808b04493324f334350eBB3AE8d11 12
MTA Balancer Pool Polygon PoS 0x4e649Fa2f3C0Ff18b7695d1e1fa371a1999187Dc 13
Votium Bribe Ethereum 0xb6d519a0D616f6F5Fac2b1dBC5bcb92ea58EDa4a 15
Vesper Finance Ethereum 0x849b0586cb4aC9873E095939D5A076719F354968 17
Idle Finance Ethereum 0xD2192aa940588851541086D03942572E02CF71B4 18

Technical Specification

For each of the dials to be disabled the following function will be called from the ProtocolDAO multisig:

Emissions Controller (0xBa69e6FC7Df49a3b75b565068Fb91ff2d9d91780):

  • updateDial(uint256 _dialId, bool _disabled, bool _notify)
    • _dialId = See table in specifications
    • _disabled = true Changing the flag to disable the dial
    • _notify = get the current value of the flag, set to the same value
2 Likes

This is what I would vote for! Excited to see that we are doing something to disable unprofitable dials that are costing MTA holders and stakers.

Still think we should at least keep the dials for our core product that has a proven track record.

1 Like

Great MCCP, thanks a lot for the collaboration and effort @nesk!

I, too, would be in favour of the choice that @dimsome highlighted, as it will ensure that ecosystem partners don’t get completely rekt, while retaining our most profitable dials and allowing them to be incentivized accordingly!

1 Like

Thanks for the proposal, I am inclined towards:

Disabling some dials but keep:
MTA Staking
mBPT Staking
TreasuryDAO
imUSD Vault
imUSD Vault Polygon

Always good to take things slowly.

2 Likes

Glad to see this coming to vote. I’m all for keeping (while reducing) incentives for stakers and Save-related parties

Well done, I would love to see this moving forward, I would probably vote on one of the two:

  • Disable most dials but keep:
    • MTA Staking
    • mBPT Staking
    • TreasuryDAO
  • Disabling some dials but keep:
    • MTA Staking
    • mBPT Staking
    • TreasuryDAO
    • imUSD Vault
    • imUSD Vault Polygon

Thanks @nesk. Great to see this proposal moving forward. I will vote to support one of the options for removing dials. I can see the argument for retaining mUSD dials to show commitment to integration partners, despite it being an inefficient use of MTA from a revenue perspective. If it goes this way, I’d hope that the imUSD dials can be reviewed again once there are some new dials options supporting v2 products.

2 Likes

gm everyone,

this vote has resolved to retain core dials & imUSD vault dials active with an overwhelming majority, and we’ll be implementing these changes in the coming days!

Thank you all for shaping mStable’s future together! :innocent:

I edited the proposal and removed the imUSD dials from the specifications in order to reflect the outcome of the vote. So there will be no confusion in to what dials to disable.