MIP-49 Rebalancing of Moonriver Token Liquidity Incentives

Proposals Moonwell Improvement Proposal
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MIP-49 Rebalancing of Moonriver Token Liquidity Incentives

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

  • Submitter: Fechuky
  • Generator Version: 1.0.13
  • Generated At: Mon, 15 May 2023 03:08:25 GMT
  • Network: Moonriver
  • Block Height: 4,243,899

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 173,977,202 MFAM staked in the Safety Module, with a valuation of $234,920.22 (based on a MFAM price of $0.001350 pulled from SolarBeam).

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

  • Current (estimated APR = ~38.54%):
    • 2.1247 MFAM / second
    • 183,574.97 MFAM / day
    • 5,140,099.14 MFAM / reward cycle (28 days)
  • Proposed (estimated APR = ~38.54%):
    • 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 88,450,585 MFAM and 18,570 MOVR provided by liquidity providers in the SolarBeam MFAM/MOVR pool totaling $238,868.43.

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

Current rewards will expire at Fri, 19 May 2023 03:30:00 GMT

Proposed rewards will expire at Fri, 16 Jun 2023 03:30:00 GMT

  • Current (estimated APR = ~42.50%) days:
    • 2.3823 MFAM / second
    • 205,826.57 MFAM / day
    • 5,763,144.00 MFAM / reward cycle (28 days)
  • Proposed (estimated APR = ~42.50%):
    • 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 $0.9999
Supplied 8,743,566.40 USDC.multi
Borrowed 6,066,179.05 USDC.multi
Supplied TVL $8,742,692.04
Borrowed TVL $6,065,572.43
Utilization 69.38%
MFAM Incentive Share 64%
MOVR Incentive Share 64%
Estimated APRs Current Proposed
Supply Side 6.88% 8.76%
Borrow Side -3.53% -3.53%

MFAM Incentives

Current Proposed
Supply Side 0.8885 MFAM / sec 1.2362 MFAM / sec
+28.13% 76,767.71 MFAM / day 106,807.25 MFAM / day
2,149,496.00 MFAM / cycle* 2,990,603.14 MFAM / cycle*
Borrow Side 0 MFAM / sec 0 MFAM / sec
+0% 0 MFAM / day 0 MFAM / day
0 MFAM / cycle* 0 MFAM / cycle*

MOVR Incentives

Current Proposed
Supply Side 0.0019 MOVR / sec 0.0026 MOVR / sec
+28.13% 163.07 MOVR / day 226.88 MOVR / day
4,565.96 MOVR / cycle* 6,352.64 MOVR / cycle*
Borrow Side 0 MOVR / sec 0 MOVR / sec
+0% 0 MOVR / day 0 MOVR / day
0 MOVR / cycle* 0 MOVR / cycle*
  • Reward cycle is 28 days long

ETH.multi Market
Latest price $1,825.54
Supplied 1,155.20 ETH.multi
Borrowed 113.60 ETH.multi
Supplied TVL $2,108,872.74
Borrowed TVL $207,384.82
Utilization 9.83%
MFAM Incentive Share 15%
MOVR Incentive Share 15%
Estimated APRs Current Proposed
Supply Side 11.96% 6.76%
Borrow Side -3.54% -3.54%

MFAM Incentives

Current Proposed
Supply Side 0.5215 MFAM / sec 0.2897 MFAM / sec
-80.00% 45,059.31 MFAM / day 25,032.95 MFAM / day
1,261,660.70 MFAM / cycle* 700,922.61 MFAM / cycle*
Borrow Side 0 MFAM / sec 0 MFAM / sec
+0% 0 MFAM / day 0 MFAM / day
0 MFAM / cycle* 0 MFAM / cycle*

MOVR Incentives

Current Proposed
Supply Side 0.0011 MOVR / sec 0.0006 MOVR / sec
-80.00% 95.72 MOVR / day 53.18 MOVR / day
2,680.02 MOVR / cycle* 1,488.90 MOVR / cycle*
Borrow Side 0 MOVR / sec 0 MOVR / sec
+0% 0 MOVR / day 0 MOVR / day
0 MOVR / cycle* 0 MOVR / cycle*
  • Reward cycle is 28 days long

MOVR Market
Latest price $6.43
Supplied 142,096.72 MOVR
Borrowed 37,330.71 MOVR
Supplied TVL $913,918.70
Borrowed TVL $240,098.65
Utilization 26.27%
MFAM Incentive Share 6%
MOVR Incentive Share 6%
Estimated APRs Current Proposed
Supply Side 12.18% 7.18%
Borrow Side -6.12% -6.12%

MFAM Incentives

Current Proposed
Supply Side 0.2125 MFAM / sec 0.1159 MFAM / sec
-83.33% 18,357.50 MFAM / day 10,013.18 MFAM / day
514,009.91 MFAM / cycle* 280,369.04 MFAM / cycle*
Borrow Side 0 MFAM / sec 0 MFAM / sec
+0% 0 MFAM / day 0 MFAM / day
0 MFAM / cycle* 0 MFAM / cycle*

MOVR Incentives

Current Proposed
Supply Side 0.0005 MOVR / sec 0.0002 MOVR / sec
-83.33% 38.99 MOVR / day 21.27 MOVR / day
1,091.86 MOVR / cycle* 595.56 MOVR / cycle*
Borrow Side 0 MOVR / sec 0 MOVR / sec
+0% 0 MOVR / day 0 MOVR / day
0 MOVR / cycle* 0 MOVR / cycle*
  • Reward cycle is 28 days long

xcKSM Market
Latest price $25.69
Supplied 24,922.37 xcKSM
Borrowed 4,547.36 xcKSM
Supplied TVL $640,289.50
Borrowed TVL $116,827.80
Utilization 18.25%
MFAM Incentive Share 5%
MOVR Incentive Share 5%
Estimated APRs Current Proposed
Supply Side 10.65% 7.79%
Borrow Side -4.85% -4.85%

MFAM Incentives

Current Proposed
Supply Side 0.1352 MFAM / sec 0.0966 MFAM / sec
-40.00% 11,682.04 MFAM / day 8,344.32 MFAM / day
327,097.22 MFAM / cycle* 233,640.87 MFAM / cycle*
Borrow Side 0 MFAM / sec 0 MFAM / sec
+0% 0 MFAM / day 0 MFAM / day
0 MFAM / cycle* 0 MFAM / cycle*

MOVR Incentives

Current Proposed
Supply Side 0.0003 MOVR / sec 0.0002 MOVR / sec
-40.00% 24.81 MOVR / day 17.72 MOVR / day
694.82 MOVR / cycle* 496.30 MOVR / cycle*
Borrow Side 0 MOVR / sec 0 MOVR / sec
+0% 0 MOVR / day 0 MOVR / day
0 MOVR / cycle* 0 MOVR / cycle*
  • Reward cycle is 28 days long

FRAX Market
Latest price $1.00
Supplied 592,330.99 FRAX
Borrowed 465,928.46 FRAX
Supplied TVL $592,809.22
Borrowed TVL $466,304.63
Utilization 78.66%
MFAM Incentive Share 5%
MOVR Incentive Share 5%
Estimated APRs Current Proposed
Supply Side 10.38% 10.38%
Borrow Side -4.01% -4.01%

MFAM Incentives

Current Proposed
Supply Side 0.0966 MFAM / sec 0.0966 MFAM / sec
+0.00% 8,344.32 MFAM / day 8,344.32 MFAM / day
233,640.87 MFAM / cycle* 233,640.87 MFAM / cycle*
Borrow Side 0 MFAM / sec 0 MFAM / sec
+0% 0 MFAM / day 0 MFAM / day
0 MFAM / cycle* 0 MFAM / cycle*

MOVR Incentives

Current Proposed
Supply Side 0.0002 MOVR / sec 0.0002 MOVR / sec
+0.00% 17.72 MOVR / day 17.72 MOVR / day
496.30 MOVR / cycle* 496.30 MOVR / cycle*
Borrow Side 0 MOVR / sec 0 MOVR / sec
+0% 0 MOVR / day 0 MOVR / day
0 MOVR / cycle* 0 MOVR / cycle*
  • Reward cycle is 28 days long

USDT.multi Market
Latest price $1.00
Supplied 566,951.16 USDT.multi
Borrowed 366,943.16 USDT.multi
Supplied TVL $567,228.96
Borrowed TVL $367,122.96
Utilization 64.72%
MFAM Incentive Share 5%
MOVR Incentive Share 5%
Estimated APRs Current Proposed
Supply Side 8.24% 9.86%
Borrow Side -3.29% -3.29%

MFAM Incentives

Current Proposed
Supply Side 0.0773 MFAM / sec 0.0966 MFAM / sec
+20.00% 6,675.45 MFAM / day 8,344.32 MFAM / day
186,912.70 MFAM / cycle* 233,640.87 MFAM / cycle*
Borrow Side 0 MFAM / sec 0 MFAM / sec
+0% 0 MFAM / day 0 MFAM / day
0 MFAM / cycle* 0 MFAM / cycle*

MOVR Incentives

Current Proposed
Supply Side 0.0002 MOVR / sec 0.0002 MOVR / sec
+20.00% 14.18 MOVR / day 17.72 MOVR / day
397.04 MOVR / cycle* 496.30 MOVR / cycle*
Borrow Side 0 MOVR / sec 0 MOVR / sec
+0% 0 MOVR / day 0 MOVR / day
0 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

Hello MFAM! My previous reward speed proposal MIP-48 was defeated by a very slim margin (49.52% to 50.48%). I noticed there were a few large wallets that voted against it, but nobody shared any rationale or feedback with the community either here or in Discord. Your feedback is very important - if you have any thoughts, questions, or concerns, please voice them here or in the Moonwell Discord.

I have rerun the market reward adjuster tool and submitted a new proposal MIP-49. This was done quickly to avoid the DEX rewarder contract breaking. If you look at MIP-42, you can see that the DEX rewarder is currently set to expire on Fri May 19 2023 00:30:00 GMT-0300.

Captura de pantalla 2023-05-15 a la(s) 01.27.00
Captura de pantalla 2023-05-15 a la(s) 01.27.001492×108 21.6 KB

I also want to stress that if this proposal does not pass, the DEX rewarder will break and will have to be redeployed, rewards will go to zero on the Solarbeam MFAM-MOVR farm, and Safety Module staking rewards will likely run dry. This proposal also helps to balance rewards across all markets. If you stake or hold MFAM, please help the community pass this important proposal!