✅ [RFC] Pre-approve BPT Locking & Voting for upcoming veBAL Tokenomics on Balancer

Summary

This RFC would like to gather feedback surrounding the pre-approval of locking all current and future BPT that the Asset Management subDAO custodies to be used for the upcoming veBAL Tokenomics revamp in order to direct gauge weight and subsequent BAL rewards to the 80/20 MTA/WETH pool on Balancer v2 in order to increase rewards for the mStable ecosystem.

Abstract

The current ve-tokenomics are all the hype in the DeFi ecosystem, and Balancer is also jumping on this narrative, which does make a lot of sense given their model of BAL distribution.

In order to be able to have our own treasury take advantage of this upcoming change, it is suggested to pre-approve our own BPTs that sit in the Asset Management subDAO and lock these token as soon as the new tokenomics release on the side of Balancer in order to enable to redirect BAL rewards to our own 80/20 MTA/WETH pool.

This is a strict improvement over our current strategy that regularly compounds all accrued BAL rewards from our 80/20 BAL/WETH pool back into the position and leaves the BPT sitting idle in our multisig wallet.

Instead, we would now perpetually lock these BPT into the new staking contract and direct the gauge voting power into the 80/20 MTA/WETH pool, which will increase BAL rewards over time to this pool.

Motivation

The mStable Asset Management subDAO currently holds roughly 450,000 mUSD worth of 80/20 BAL/WETH BPT, and is compounding 100% of these rewards back into the position. With the release of the updated veBAL tokenomics model, we wish to be leveraging this position further by locking all accrued BPT in their staking contract for the maximum amount of time (1 year).

This will give the multisig the ability to direct BAL rewards directly to our native 80/20 MTA/WETH pool and thus increase BAL rewards for for all MTA BPT stakers in our own ecosystem, which is a great value accrual mechanism for MTA itself and gives an additional incentive to stake MTA on this position.

Pros

  • Increase efficiency of our current Balancer position
  • Directly benefit MTA BPT stakers on our own contract by increasing BAL rewards issued to them
  • Gain proportional governance rights of the Balancer Protoco by regularly locking all BPT in their contracts

Cons

  • Additional overhead via needing to stake and refresh the time-lock on the staked BPT

Next Steps

It is suggested that the community comment on this RFC in the coming days, and bearing no significant opposition or change in ideation, we would move ahead with this RFC in the coming week and create a formal draft proposal on Github to be used for review.

Meta Governors are encouraged to provide as much feedback as possible until then, so we can create the best possible outcome for mStable and its users.

4 Likes

Yup no-brainer.

I would just add that we would also need to vote some for our Polygon Balancer Pool as well.

Great proposal @mZeroNine
Balancer is using mStable Emission Controller for their two pools in our ecosystem. It seems like the natural thing to do for us to use their own gauges as the two DAO swapped $400k of their mutual governance token for among other things this very purpose earlier last year
It brings utility to the BAL of the treasury while increasing the attractivity of the 80/20 MTA/WETH pool.
Fully in support of this

Not much else to say - Fully support.

Same here. I’m in support.

Thanks for the feedback everyone! This seems to be very much in favor, so I’ll go ahead and write up the TDP for this to be posted next week! :sunglasses:

3 posts were split to a new topic: [Discussion] Balancer Bribes