MDP21.1: Migration of DAI/MTA liquidity on Uniswap v2 to v3

Summary:

Last month, the mStableDAO allocated just under 5m USD worth of DAI and MTA tokens to Uniswap. This was done to bolster MTA liquidity and offset the effect of the reduction in MTA/ETH rewards happening concurrently. This was discussed here.

Uniswap v3 launched today, and it makes sense to have a discussion around if this migration of liquidity is desirable and if so what parameters the mStableDAO should choose for its v3 liquidity contribution.

Abstract:

The proposed changes are:

  • Should we migrate the c.5m USD worth of v2 DAI/MTA liquidity to v3?
  • If so what price range should this liquidity be provided across? It should be noted that at the these price ranges should be thought of as “limit orders” and beyond them the liquidity is no longer active. This probably means we want to provide across a wide price range as the express purpose of this is to improve the MTA token’s liquidity.

Motivation:

If done right, the migrating of this liquidity to v3 will allow us to further improve the public liquidity of MTA across DeFi.