[MIP-35] Rebalancing of Moonriver Token Liquidity Incentives

Proposals Moonwell Improvement Proposal
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MIP-35 Rebalancing of Moonriver Token Liquidity Incentives

This is an automated proposal generated by the Moonwell Market Reward Adjustment Tool.

  • Submitter: Fechuky
  • Generator Version: 1.0.8
  • Generated At: Thu, 16 Mar 2023 23:34:22 GMT
  • Network: Moonriver
  • Block Height: 3,834,484

The submitter (Fechuky), as part of this proposal, will get 100,000 MFAM sent to their wallet at 0x87E1e08eDAfD16346d8328e2CF260ff8Bdad9e84.

Safety Module

At the time this proposal was generated there was 154,817,131 MFAM staked in the Safety Module, with a valuation of $381,417.14 (based on a MFAM price of $0.002464 pulled from SolarBeam).

This proposal, if executed, would adjust the rewards on the Safety Module to decrease emissions -23.51% and emits 5,140,099 MFAM over the next 28 days:

  • Current (estimated APR = ~56.62%):
    • 2.7778 MFAM / second
    • 240,000.00 MFAM / day
    • 6,720,000.00 MFAM / reward cycle (28 days)
  • Proposed (estimated APR = ~43.31%):
    • 2.1247 MFAM / second
    • 183,574.97 MFAM / day
    • 5,140,099.14 MFAM / reward cycle (28 days)

DEX Liquidity Pool Rewarder

At the time this proposal was generated there were 79,183,684 MFAM and 22,787 MOVR provided by liquidity providers in the SolarBeam MFAM/MOVR pool totaling $390,163.73.

This proposal, if executed, would adjust the rewards on the Dex Rewarder to decrease emissions -57.12% and emits 5,763,141 MFAM over the next 28 days:

Current rewards will expire at Fri, 24 Mar 2023 03:30:00 GMT

  • Current (estimated APR = ~110.70%) days:
    • 5.5556 MFAM / second
    • 480,000.07 MFAM / day
    • 13,440,002.00 MFAM / reward cycle (28 days)
  • Proposed (estimated APR = ~47.47%):
    • 2.3823 MFAM / second
    • 205,826.48 MFAM / day
    • 5,763,141.46 MFAM / reward cycle (28 days)

Core Protocol Rewards

Below are the current markets supported by the Moonwell Protocol, along with the proposed adjustments to the reward outputs.

USDC.multi Market
Latest price $1.00
Supplied 8,319,965.24 USDC.multi
Borrowed 5,145,448.72 USDC.multi
Supplied TVL $8,319,965.24
Borrowed TVL $5,145,448.72
Utilization 61.84%
MFAM Incentive Share 49%
MOVR Incentive Share 49%
Estimated APRs Current Proposed
Supply Side 6.21% 11.80%
Borrow Side -3.86% -8.53%

MFAM Incentives

Current Proposed
Supply Side 0.3617 MFAM / sec 0.9465 MFAM / sec
+61.79% 31,248.00 MFAM / day 81,774.30 MFAM / day
874,944.00 MFAM / cycle* 2,289,680.53 MFAM / cycle*
Borrow Side 0.8050 MFAM / sec 0 MFAM / sec
+0% 69,552.00 MFAM / day 0 MFAM / day
1,947,456.00 MFAM / cycle* 0 MFAM / cycle*

MOVR Incentives

Current Proposed
Supply Side 0.0005 MOVR / sec 0.0020 MOVR / sec
+77.35% 39.35 MOVR / day 173.71 MOVR / day
1,101.79 MOVR / cycle* 4,863.74 MOVR / cycle*
Borrow Side 0.0011 MOVR / sec 0 MOVR / sec
+0% 91.82 MOVR / day 0 MOVR / day
2,570.83 MOVR / cycle* 0 MOVR / cycle*
  • Reward cycle is 28 days long

ETH.multi Market
Latest price $1,675.01
Supplied 2,134.87 ETH.multi
Borrowed 1,108.98 ETH.multi
Supplied TVL $3,575,931.56
Borrowed TVL $1,857,551.82
Utilization 51.95%
MFAM Incentive Share 21%
MOVR Incentive Share 21%
Estimated APRs Current Proposed
Supply Side 4.32% 10.23%
Borrow Side -3.06% -7.46%

MFAM Incentives

Current Proposed
Supply Side 0.0790 MFAM / sec 0.4056 MFAM / sec
+80.53% 6,825.00 MFAM / day 35,046.13 MFAM / day
191,100.00 MFAM / cycle* 981,291.65 MFAM / cycle*
Borrow Side 0.3261 MFAM / sec 0 MFAM / sec
+0% 28,175.00 MFAM / day 0 MFAM / day
788,900.00 MFAM / cycle* 0 MFAM / cycle*

MOVR Incentives

Current Proposed
Supply Side 0.0002 MOVR / sec 0.0009 MOVR / sec
+80.00% 14.89 MOVR / day 74.44 MOVR / day
416.89 MOVR / cycle* 2,084.46 MOVR / cycle*
Borrow Side 0.0004 MOVR / sec 0 MOVR / sec
+0% 34.74 MOVR / day 0 MOVR / day
972.75 MOVR / cycle* 0 MOVR / cycle*
  • Reward cycle is 28 days long

MOVR Market
Latest price $8.56
Supplied 241,238.03 MOVR
Borrowed 100,994.98 MOVR
Supplied TVL $2,065,281.97
Borrowed TVL $864,636.13
Utilization 41.87%
MFAM Incentive Share 12%
MOVR Incentive Share 12%
Estimated APRs Current Proposed
Supply Side 4.53% 9.27%
Borrow Side 1.15% -6.38%

MFAM Incentives

Current Proposed
Supply Side 0.1264 MFAM / sec 0.2318 MFAM / sec
+45.47% 10,920.00 MFAM / day 20,026.36 MFAM / day
305,760.00 MFAM / cycle* 560,738.09 MFAM / cycle*
Borrow Side 0.2949 MFAM / sec 0 MFAM / sec
+0% 25,480.00 MFAM / day 0 MFAM / day
713,440.00 MFAM / cycle* 0 MFAM / cycle*

MOVR Incentives

Current Proposed
Supply Side 0.0002 MOVR / sec 0.0005 MOVR / sec
+67.50% 13.83 MOVR / day 42.54 MOVR / day
387.11 MOVR / cycle* 1,191.12 MOVR / cycle*
Borrow Side 0.0004 MOVR / sec 0 MOVR / sec
+0% 32.26 MOVR / day 0 MOVR / day
903.27 MOVR / cycle* 0 MOVR / cycle*
  • Reward cycle is 28 days long

xcKSM Market
Latest price $33.08
Supplied 35,194.09 xcKSM
Borrowed 8,962.46 xcKSM
Supplied TVL $1,164,080.58
Borrowed TVL $296,442.51
Utilization 25.47%
MFAM Incentive Share 7%
MOVR Incentive Share 7%
Estimated APRs Current Proposed
Supply Side 5.60% 8.44%
Borrow Side 2.76% -4.65%

MFAM Incentives

Current Proposed
Supply Side 0.1377 MFAM / sec 0.1352 MFAM / sec
-1.87% 11,900.00 MFAM / day 11,682.04 MFAM / day
333,200.00 MFAM / cycle* 327,097.22 MFAM / cycle*
Borrow Side 0.1377 MFAM / sec 0 MFAM / sec
+0% 11,900.00 MFAM / day 0 MFAM / day
333,200.00 MFAM / cycle* 0 MFAM / cycle*

MOVR Incentives

Current Proposed
Supply Side 0.0002 MOVR / sec 0.0003 MOVR / sec
+42.86% 14.18 MOVR / day 24.82 MOVR / day
397.04 MOVR / cycle* 694.82 MOVR / cycle*
Borrow Side 0.0002 MOVR / sec 0 MOVR / sec
+0% 14.18 MOVR / day 0 MOVR / day
397.04 MOVR / cycle* 0 MOVR / cycle*
  • Reward cycle is 28 days long

FRAX Market
Latest price $1.00
Supplied 1,035,358.11 FRAX
Borrowed 783,860.58 FRAX
Supplied TVL $1,035,526.24
Borrowed TVL $783,987.87
Utilization 75.71%
MFAM Incentive Share 7%
MOVR Incentive Share 7%
Estimated APRs Current Proposed
Supply Side 14.23% 14.85%
Borrow Side 9.43% -10.04%

MFAM Incentives

Current Proposed
Supply Side 0.1944 MFAM / sec 0.1352 MFAM / sec
-43.81% 16,800.00 MFAM / day 11,682.04 MFAM / day
470,400.00 MFAM / cycle* 327,097.22 MFAM / cycle*
Borrow Side 0.4537 MFAM / sec 0 MFAM / sec
+0% 39,200.00 MFAM / day 0 MFAM / day
1,097,600.00 MFAM / cycle* 0 MFAM / cycle*

MOVR Incentives

Current Proposed
Supply Side 0.0002 MOVR / sec 0.0003 MOVR / sec
+14.29% 21.27 MOVR / day 24.82 MOVR / day
595.56 MOVR / cycle* 694.82 MOVR / cycle*
Borrow Side 0.0006 MOVR / sec 0 MOVR / sec
+0% 49.63 MOVR / day 0 MOVR / day
1,389.64 MOVR / cycle* 0 MOVR / cycle*
  • Reward cycle is 28 days long

USDT.multi Market
Latest price $1.00
Supplied 556,322.42 USDT.multi
Borrowed 399,718.81 USDT.multi
Supplied TVL $557,832.84
Borrowed TVL $400,804.05
Utilization 71.85%
MFAM Incentive Share 4%
MOVR Incentive Share 4%
Estimated APRs Current Proposed
Supply Side 11.66% 14.79%
Borrow Side 6.21% -9.62%

MFAM Incentives

Current Proposed
Supply Side 0.0810 MFAM / sec 0.0773 MFAM / sec
-4.86% 7,000.00 MFAM / day 6,675.45 MFAM / day
196,000.00 MFAM / cycle* 186,912.70 MFAM / cycle*
Borrow Side 0.2431 MFAM / sec 0 MFAM / sec
+0% 21,000.00 MFAM / day 0 MFAM / day
588,000.00 MFAM / cycle* 0 MFAM / cycle*

MOVR Incentives

Current Proposed
Supply Side 0.0001 MOVR / sec 0.0002 MOVR / sec
+40.00% 8.51 MOVR / day 14.18 MOVR / day
238.22 MOVR / cycle* 397.04 MOVR / cycle*
Borrow Side 0.0002 MOVR / sec 0 MOVR / sec
+0% 19.85 MOVR / day 0 MOVR / day
555.86 MOVR / cycle* 0 MOVR / cycle*
  • Reward cycle is 28 days long

Definitions

MFAM - The Moonwell Apollo governance token

Liquidity Incentives - MFAM tokens that have been allocated for use as rewards to incentivize liquidity growth.

Core - Moonwell Apollo lending protocol (Moonwell: DeFi’s Liquidity Well).

DEX LP - Solarbeam’s MFAM/MOVR farm (Solarbeam - The DEX on Moonriver, powered by SOLAR).

Safety Module - Smart contract that allows users to stake their MFAM tokens in order to earn liquidity incentives and help backstop the Moonwell protocol.

Reward Speed - The rate at which MFAM tokens (on a per second basis) are distributed proportionally to DEX LPs, wallets staking in the Safety Module, and those supplying/borrowing on Moonwell.

2

Hey everyone! I just wanted to add context around MIP-35 and the proposed changes.

Reward speed proposals like MIP-35 are submitted every 4 weeks and balance rewards across markets on Moonwell, the Safety Module, and the MFAM/MOVR DEX farm on Solarbeam. These proposals also add MFAM incentives to the DEX farm rewarder contract to avoid it running dry.

Safety Module and DEX farm TVL have grown substantially since the last reward speed proposal and the protocol can’t sustain these high APRs, so they are being adjusted down. This decrease is offset by an increase to rewards for supplying on Moonwell markets. This proposal also brings rewards in alignment with Moonwell Artemis by moving additional rewards to the supply side, and away from borrow. This should encourage additional Supply TVL and discourage looping.

If you have any questions, please don’t hesitate to ask.