PDP 20: Extend buyback and make to Feeder Pools

Posted on behalf of the mStable ProtocolDAO

Summary

In an earlier forum post it was suggested to extend the Buyback&Make strategy to the recently launched Feeder Pools.

With this PDP 20 the mStable ProtocolDAO proposes formally to redirect a percentage of the system fees from the Feeder Pools to the Buyback&Make pool with the initial magnitude of 10%. Revenues from Feeder Pools are composed of swap fees into feeder Assets (currently GUSD, BUSD, TBTC, and HBTC), Feeder Pool Token redemption fees, and yield generated from third-party lending platforms.

All collected fees will be deposited into the Balancer MTA/ETH/mUSD/mBTC pool. The pool parameters are maintained by the mStable protocolDAO with the collateral owned by the system & vMTA holders.

Motivation

The system fees have been enabled for other parts of the mStable ecosystem with an earlier proposal (MIP 8). This addition of the system fees to Feeder Pools is a rational step in order include all parts of mStable into the generation of revenue and to further increase the reflexivity of the MTA token value, boosting APY% and in turn, incentivizing higher liquidity.

MIP

The full specifications can be read here.

Next Steps

Pending no significant changes to its content, this proposal will be taken to snapshot vote in 5 days (Monday, 19th April 2021). Voting will be open for a 5 days window to give adequate time for a concurrent discussion. Governors can change their vote at any time should the discussion sway their decision. We look forward to hearing what MTA token holders have to say and seeing how they cast their votes.

4 Likes

Totally in favor of this move

1 Like

Let’s reel in those juicy fees for our precious nest egg :grin:

2 Likes

In favour of this, that buyback and make pool is going to be an integral part of the mStable protocol in years to come. Looking forward to seeing the vote up next Monday!

Am I the only one who can’t get the image of a dam out of their mind when thinking about the buyback and make pool? All dat liquidity…

image

2 Likes

This proposal is now on snapshot to vote upon: Snapshot

2 Likes