[Proposal] STABLEx Feeder Pool (ARCx)

Summary

ARCx aims to be a decentralized central bank that issues credit against assets in the DeFi space through its native stablecoin STABLEx. In this proposal, we outline our collaboration between mStable and ARCx could look like in the present and future.

Background

In Jan 2021, we added imUSD as collateral to mint STABLEx with. The initial collaboration was a great way for the mStable and ARCx communities to build a relation and enable greater usability of mStable’s assets through the DeFi ecosystem.

Proposal

In this proposal, we at ARCx, would love to have STABLEx as one of the first feeder pools with MTA incentivization enabled. Outlined below are various pathways we envision for how both communities can work together in the future:

  1. Allowing more mAssets to be enabled as collateral on the ARCx ecosystem. This is powerful since it means that credit can be issued against assets that are otherwise unproductive.

  2. Enabling a deeper liquidity pool between mUSD/STABLEx to allow greater leverage on certain assets such as imUSD and imBTC.

  3. Linking into the second point, a co-incentivised liquidity campaign where users earn ARCx and MTA tokens. This will be subject to the technical complexity to make this happen. We’ve already done something similar with LIDO for StETH (Proposal: StETH as Collateral on ARCx - Lido Governance) and Badger for bLP tokens (BIP 44: Integrating bwbtcBadgerSLP & bwbtcBadgerUNI-V2 - BIP | Badger Improvement Proposals - BadgerDAO).

Closing

We’re excited to deepen our collaboration with the mStable community at ARCx and look forward to hearing the response from Meta governors and the mStable DAO itself. Me and anyone else from ARCx will be more than happy to provide more detail and clarity around the points listed above.

3 Likes

Awesome proposal from ARCx. I’m very keen to enable our first dual incentivised feeder pool with STABLEx/mUSD.

Questions:

  • how does this relate to MCCP-4?
  • how many ARCx tokens would be allocated to this campaign and for how long
  • what is the technical overhead in creating a dual token reward structure (cc @alsco77)

Also really happy with this as part of a longer term collaboration (points 1 and 2).

:rocket:

1 Like

Having a StableX feeder Pool is a great proposal!

I see that the ARCx project delivers a lot of value to holders of various assets to maximize capital efficiency. Currently, the liquidity for stableX with other stable coins is not that high. For instance, the trading pair on Uniswap USDC/StableX has only about a million in the pool.

This is exactly where is see the mStable system could add the most value. Offer better and less slippage-prone trades for stableX in order to allow participants to bridge into the rest of the Defi Ecosystem.

I believe this is the right place to incentive liquidity!