✅ [RFC] Incentivize Vesper mStable Pool

Summary:

Support a prospective Vesper mStable (mUSD) yield aggregator with MTA dial.

Abstract:

Vesper Finance is a DeFi super app that makes DeFi more accessible and easier to use. It offers well-audited products that simplify digital asset growth and deliver new opportunities for exposure to emerging DeFi projects and communities. The platform’s native token, VSP, incentivizes participation, facilitates governance and catalyzes user contribution.
Vesper and mStable teams have engaged in discussion about the creation and co-boosting of a mStable pool on Vesper. Users deposit mStable and earn compounding rewards. MTA stakers with a position additionally earn VSP and MTA rewards.

Motivation:

Interactions on Curve-Convex can be unintuitive for the end user. Even savvy individuals pay significant gas. New destinations for mStable can take time for users to warm up and become comfortable with them. Vesper abstracts away these complexities for the end user.

Technical Implementation

Vesper to create a “vaMUSD” pool that accepts mStable deposits. The initial strategy buildout will reflect a Curve-Convex strategy: deposits are converted to mUSD-CRV liquidity and staked on Convex, with rewards autocompounding on behalf of the user.

mStable to whitelist the vaMUSD token for MTA dial.

Vesper to direct VSP weekly to the dial and direct our depositors to stake MTA for additional rewards through mStable site.

Pros:

  • mStable users can access yield opportunities without high gas costs or active management required to realize and compound rewards. Additional VSP + MTA rewards make this a worthwhile yield opportunity for mStable holders.
  • This additionally works to establish a more cohesive relationship between mStable and Vesper. This could manifest in a number of ways, including: Vesper utilizing Save across our other pools, as well as mStable deploying AUM through Vesper to earn yield.
  • Opportunity exists to launch pools on both ETH and Polygon.

Cons:

  • Vesper charges a 20% performance fee on yield accrued plus a 0.6% withdrawal fee.
3 Likes

Thanks a lot @greenjeff for the write-up
Highly in support of this proposal and am excited by the prospect of mStable & Vesper working together.
We are exploring the idea of having mUSD part of Vesper Orbit product as well as potentially using mStable Save in Vesper yield strategy.
This proposal is about the former where Vesper would build a "vaMUSD” pool that accepts mStable deposits and leverage the Emission Controller rewards towards its pool, becoming a new dial

Vesper would leverage Convex integration and give additional utility to mUSD tweaking it with auto compounding rewards and important gas savings.

Looks interesting to me. Had a look around the dapp and the delineation between wanting to earn more of a coin, or wanting to earn in another coin is pretty cool. I don’t see any downside for us really, and it provides another location for the use of mUSD, taking heat off of the Savers.

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Extremely supportive of this initiative. I think this is absolutely what mUSD should move towards. Would also support if this is simultaneously launched on polygon and (pending governance) would be willing to move some funds denoted in mUSD into these.

The only concern I had was following. Is the 20% fee for all? Since the pool is being incentivised it would be nice if this fee is also lower via the pool.

2 Likes

Thanks for opening up this discussion. I renamed this to an RFC.

So this proposal boils down to creating a dial for the vaMUSD pool for MTA rewards? The weekly MTA rewards would be decided by MTA stakers anyways. Creating a dial for this purpose seems good and I would be keen. I think that is what you mean by “Whitelist”?

What is the amount of VSP that you would be putting into this? How is this decided from your side?

Also how are you able to achieve: “direct our depositors to stake MTA for additional rewards through mStable site”

The performance fee is quite hefty, but in the end, it’s for the user to decide if the fees offset the benefit for them.

So yeah, proposal to create a dial for vaMUSD. I am positive!

2 Likes

Thanks for the creation of this RFC, and I can only echo what my peers have already said. We should strife towards positive and optimistic indifference in regards to these sort of integrations, and I for one am looking forward to seeing more protocols leverage the powerful emissions controller incentivization it can create.

In many ways, these are the pioneers that shape the future of the Emissions Controller structure and usability, so keen to see this unfold in this way!

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@greenjeff I think the responses have been so far positive. What’s your timeline for launching this product? We could move ahead and create an MCCP, if there are no further objections.

Awesome, I am getting word from engineering and will react here shortly!

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yessir, whitelist = dial

To react to your questions:

i think the biggest outstanding is how the dual-rewards is assigned. Vesper has reward contracts assigned to each pool token that supports multiple rewards. We could either receive MTA weekly to that contract and stream it back out or send VSP rewards to the dial (?) My limited understanding is that you will still need to take your vaMUSD and stake it in the “feeder pool” to receive dial rewards.

VSP emissions are capped at 27,500 per month across all pools. From that, 12,500 is split according to best performing pools, which MUSD may qualify for, as well as 10,000 for new pools and partners, which MUSD also qualifies for. Rewards fluctuate according to this budget, with each month cycle ending on the 17th of the month.

Given circumstances and priority for partner pools, I’d anticipate somewhere in the ballpark of 250-1000 VSP per week, dependent on TVL.

20% performance fee is modeled after yearn, though we are actively discussing a new, more modest fee model.

Excited to push forward with this!

2 Likes

Ok nice! We could add a dial and set a RewardsForwarder contract as the recipient. This contract can then send out the weekly MTA to whatever address is set. No need to stake the vaMUSD in our contract. If your contract can handle both rewards and the MTA top up on a weekly basis, then it should work.

1 Like