Migrating Uniswap pool MTA/ETH rewards to SushiSwap

Posted by a representative of the mStable DAO

The mStable DAO is responsible for managing MTA and mUSD in treasury on behalf of the mStable community and protocol. It is the entity that is tasked with funding EARN pool rewards, Grants, and any other expenditures of the mStable treasury. It is currently maintained by 6 signers, who ratify decisions on behalf of MTA governors.

In future, MTA token holders will vote directly to determine what the DAO does.

Summary

An opportunity to collaborate with SushiSwap has presented itself, that would allow for an MTA/ETH pool to receive $SUSHI and $MTA rewards via the mStable EARN product and SushiSwap’s Onsen.

The mStable DAO is proposing to migrate some or all of the MTA/ETH EARN pool rewards from Uniswap EARN pool to SushiSwap in order to take advantage of their incentivised liquidity mining program. This could:

  • Users will now earn MTA and SUSHI for their LP deposits
  • Open the way for further collaboration between mStable and SushiSwap

We are seeking feedback from the community on this.

Voting is now live on this forum item:

Vote to migrate to SushiSwap
https://snapshot.page/#/mstable/proposal/QmWbRsQ2soH9wVoSKR8niwLNrDBByvn3tKvUvb6y8CoMbi

Reward % to be allocated if passed
https://snapshot.page/#/mstable/proposal/QmQQyev52h5JmoELjN8seMTMMYTKah7M5ka4wa1Dfp9Qj7

2 Likes

I do have some reservations about this one. Uniswap MTA/ETH is the critical MTA pool, and there is non zero risk in migrating.

I would suggest either reallocating the Balancer pool’s MTA to this Sushi pool or having a vote for to use additional MTA from the mStableDAO. All major DeFi tokens have liquid pools on both Uniswap and Sushi - shouldn’t we aim to do that as well?

2 Likes

Completely agree. Having pools on both exchanges is absolutely essentiaL.

2 Likes

I think with the result from this vote, we will have a 50% reward allocation on Uniswap, and a 50% allocation on Sushiswap.

This of course raises the question if the Uniswap pool should receive a higher allocation of MTA in the future, since there is no additional SUSHI rewards present there, or if we will let it play out and see what happens :grin:

I don’t think we should be removing the ETH/mUSD Balancer allocation. The current incentive for the ETH/mUSD pair currently doesn’t even come close to covering the divergent loss, and probably never will, if ETH keeps climbing the way it has.

Redirecting MTA from there now will probably not go down well in the community, and I’d rather see an alternative solution to this, or start directing some of the BAL rewards into buying back MTA to finance further distribution of MTA to more pools down the line.

1 Like

Not a fan of dividing liquidity away from the most common trading venue (Uniswap). A healthy uniswap MTA/ETH pool is the foundation of maintaining robust token value

Average user suffers loss of liquidity

1 Like