✅ [RFC] The Future of the Buyback & Make Pool

Summary

This RFC would like to gather feedback surrounding the future of the Buyback & Make Pool that was originally intended to increase the buy pressure on MTA, as well as some auxiliary possibilities, but has since been put to an inactive status due to it’s limited impact.

With the release of our Emissions Controller, this particular feature was no longer necessary and required for the protocol, as we’re now directly capturing value via dial and putting a portion of our governance fees directly into our treasury.

The pool tokens themselves have since been moved to the Asset Management subDAO Safe and are currently awaiting their future use case. The underlying tokens which make up the pool can be found here (thanks @dimsome).

Abstract

With the sunsetting of the Balancer Buyback & Make pool, we should consider the future of the tokens underlying this pool and make use of the funds that accumulated over time from protocol fees in the ecosystem.

Since the pool consists of mainly MTA, and the remaining positions in mBTC, mUSD, and WETH are negligible, it is suggested to redeem the pool tokens for their underlying and leave all assets in the Asset Management subDAO for increasing the returns for mBTC and mUSD Save users while retaining the MTA for future ecosystem payments or for use in Tribe Turbo, should this RFC and subsequent proposal resolve in favour.

Motivation

It has been a significant amount of time since the removal of the Buyback & Make deposits, and we should now decide on the future of the funds that the pool generated during its lifespan.

Since the pool does no longer meaningfully contribute on Balancer or our own ecosystem, especially with the move to v2 and the veBAL tokenomics launch, it is time to make a decision on how to move forward.

The liquidation of the pool tokens will also shed more clarity on the funds that the protocol has available, and slightly remove obscuration of which assets the Gnosis Safe holds.

Pros

  • Free the underlying assets of the Buyback & Make Pool for other use cases
  • Create more visibility on the tokens the Asset Management subDAO holds
  • Put a checkmark on this venture

Cons

  • A little bit of operational workload on the smart contract level to liquidate funds

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.

I support this! Makes a lot of sense to get the Assets out of the legacy Balancer v1 pool.

Agree to consolidate assets for the DAO to manage

I am also supportive of this move.

Thanks a lot for the feedback everyone! Since this seems to be a no-brainer for everyone, will be moving this to a TDP sometime next week! :sunglasses: