Posted by a representative of the mStable protocolDAO
It is proposed that the maximum USD amount of liquidated COMP, AAVE and other lending platform tokens sent to boost the SAVE APY each week be increased. The current maximum is 5,000 USD, and it is proposed to increase this parameter to a value somewhere in the range between 10,000 -20,000 USD worth of tokens liquidated weekly.
We are seeking feedback from the community on this proposed change, and their thoughts on the value range proposed. This could be executed immediately following a snapshot vote were it to be authorised by governors.
As defined in MIP-2, reward tokens (such as $COMP, $LEND) that have accrued in the mStable protocol are liquidated, with proceeds being used to bolster the Save product’s USD APY. These reward tokens that have accrued to the protocol have increased in market value since the original MIP, and now represent a more sizeable total USD value pool that can be liquidated.
On top of this, it is expected that the protocol will earn tokens from other platforms such as Aave.
The impacts of doing this will bolster the Save APY, and mean that concurrent proposals seeking to channel some of these Save APY flows to destinations other than savers (such as the Buyback and Make proposal) will have a minimal impact on Save yields.
This has been proposed by the ProtocolDAO as its signers believe that now is an opportune time to bolster Save APYs whilst mStable engages in more aggressive growth strategies.
This MCCP is motivated by a desire to pursue these long term growth strategies that benefit mStable as a protocol whilst minimising Save APY dilution.
Can be found here.