Sushiswap MTA/ETH rewards II discussion

Posted by a representative of the mStableDAO

Goal

The purpose of this discussion is align on whether the mStableDAO should allocate rewards to the MTA/ETH on SushiSwap.

Background

  • Earlier this month, SushiSwap allocated SUSHI rewards to an MTA/ETH pool on their protocol as part of their Onsen program.
  • The mStableDAO sought feedback from the community regarding the possible migration of the Uniswap MTA/ETH EARN pool rewards to a SushiSwap MTA/ETH pool. This proposal was voted against.
  • Multiple stakeholders expressed interest in incentivising on Sushiswap, but disagreed with the proposal’s suggestion of removing rewards from the Uniswap pool. They felt the choice was too constrained and that other ways should be considered.
  • As context, mBTC/ETH pool was launched last week and will be added to Onsen soon. This pool has 15k MTA allocated to it, gradually increasing over the next few weeks. This MTA is ramping up to 15k/week in line with the guarded launch of mBTC.

For discussion

Key questions to discuss before a proposal can be written:

  • Amount of MTA allocated to MTA/ETH pool
  • Origin of rewards: will they be deducted from existing EARN pools or will they come from the mStableDAO?
  • When will these rewards start?
  • Will the rewards start immediately or ramp up gradually?
  • Amount of MTA allocated to MTA/ETH pool

Btw 10-20k?

  • Origin of rewards: will they be deducted from existing EARN pools or will they come from the mStableDAO?

I think it’s best if they come from Balancer mUSD pool

  • When will these rewards start?

Next Earn cycle

  • Will the rewards start immediately or ramp up gradually?

Gradually to give LPs of Balancer pool time

I’d propose 10K weekly rewards as well, from the Balancer pool that begins next cycle over a period of 2 weeks

Thanks so much for bringing this up again, as the vote clearly showed great interest for this pool, but also that Uniswap is also equally loved by the community.

I was initially heavily against taking from the mUSD Balancer pool, but seeing it in proportion on the Earn page now with the other ones, I think it’s only fair to take from that pool first.

Really like the idea of around 10-12.5k weekly rewards, and changing them over in 2 to 3 weeks starting from the next cycle. This will leave adequate MTA in the Balancer pool, while still giving a nice boost to earning for Sushiswap LP positions.

We should then observe how existing and new funds get reallocated in the different pools over the next 4 to 8 weeks with this change, and then decide if adjustments need to be made in rewards distribution to keep a healthy balance of pool sizes across the board :innocent: