[MIP-35] Rebalancing of Moonriver Token Liquidity Incentives

Fechuky_25 · March 18, 2023, 2:15pm

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 - Solarbeamâs 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.

Fechuky_25 · March 18, 2023, 5:50pm

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.

Topic		Replies	Views
MIP-27 Rebalancing of Moonriver Token Liquidity Incentives Moonwell Improvement Proposal mip , moonriver	1	350	April 10, 2023
MIP-48 Rebalancing of Moonriver Token Liquidity Incentives Moonwell Improvement Proposal mip , moonriver	1	309	May 13, 2023
MIP-49 Rebalancing of Moonriver Token Liquidity Incentives Moonwell Improvement Proposal mip , moonriver	1	371	May 15, 2023
[MIP-42] Rebalancing of Moonriver Token Liquidity Incentives Moonwell Improvement Proposal mip , moonriver	0	361	April 14, 2023
MIP-53 Rebalancing of Moonriver Token Liquidity Incentives Moonwell Improvement Proposal mip , moonriver	0	288	June 9, 2023

[MIP-35] Rebalancing of Moonriver Token Liquidity Incentives

MIP-35 Rebalancing of Moonriver Token Liquidity Incentives

Safety Module

DEX Liquidity Pool Rewarder

Core Protocol Rewards

USDC.multi Market

MFAM Incentives

MOVR Incentives

ETH.multi Market

MFAM Incentives

MOVR Incentives

MOVR Market

MFAM Incentives

MOVR Incentives

xcKSM Market

MFAM Incentives

MOVR Incentives

FRAX Market

MFAM Incentives

MOVR Incentives

USDT.multi Market

MFAM Incentives

MOVR Incentives

Definitions

[MIP-35] Rebalancing of Moonriver Token Liquidity Incentives

MIP-35 Rebalancing of Moonriver Token Liquidity Incentives

Safety Module

DEX Liquidity Pool Rewarder

Core Protocol Rewards

USDC.multi Market

MFAM Incentives

MOVR Incentives

ETH.multi Market

MFAM Incentives

MOVR Incentives

MOVR Market

MFAM Incentives

MOVR Incentives

xcKSM Market

MFAM Incentives

MOVR Incentives

FRAX Market

MFAM Incentives

MOVR Incentives

USDT.multi Market

MFAM Incentives

MOVR Incentives

Definitions

Related topics