MIP-R11 Rebalancing of Moonriver Token Liquidity Incentives

Proposals
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MIP-R11 Rebalancing of Moonriver Token Liquidity Incentives

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

  • Submitter: Curly
  • Generator Version: 1.0.24
  • Generated At: Tue, 16 Jan 2024 22:23:43 GMT
  • Network: Moonriver
  • Block Height: 5,960,642

The submitter (Curly), as part of this proposal, will get 250,000 MFAM sent to their wallet at 0x9F94Ff95cbC403cbfC18802eDEAeF71dA8155f36.

Safety Module

At the time this proposal was generated there was 330,556,638 MFAM staked in the Safety Module, with a valuation of $593,869.18 (based on a MFAM price of $0.001797 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 = ~20.28%):
    • 2.1247 MFAM / second
    • 183,574.97 MFAM / day
    • 5,140,099.14 MFAM / reward cycle (28 days)


  • Proposed (estimated APR = ~20.28%):
    • 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 67,642,758 MFAM and 4,695 MOVR provided by liquidity providers in the SolarBeam MFAM/MOVR pool totaling $243,050.32.

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, 26 Jan 2024 03:30:00 GMT

Proposed rewards will expire at Fri, 23 Feb 2024 03:30:00 GMT

  • Current (estimated APR = ~55.57%) days:
    • 2.3823 MFAM / second
    • 205,826.57 MFAM / day
    • 5,763,144.00 MFAM / reward cycle (28 days)


  • Proposed (estimated APR = ~55.57%):
    • 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.

MOVR Market
Latest price $25.88
Supplied 160,795.02 MOVR
Borrowed 22,552.18 MOVR
Supplied TVL $4,162,052.08
Borrowed TVL $583,745.25
Utilization 14.03%
MFAM Incentive Share 45%
MOVR Incentive Share 45%
Estimated APRs Current Proposed
Supply Side 9.99% 7.05%
Borrow Side -4.19% -4.19%

MFAM Incentives

Current Proposed
Supply Side 0.8113 MFAM / sec 0.8692 MFAM / sec
+6.67% 70,092.26 MFAM / day 75,098.85 MFAM / day
1,962,583.31 MFAM / cycle* 2,102,767.83 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 0.0004 MOVR / sec 0.0003 MOVR / sec
-55.56% 37.22 MOVR / day 23.93 MOVR / day
1,042.23 MOVR / cycle* 670.01 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 $42.31
Supplied 47,746.57 xcKSM
Borrowed 9,102.33 xcKSM
Supplied TVL $2,020,138.62
Borrowed TVL $385,116.02
Utilization 19.06%
MFAM Incentive Share 34%
MOVR Incentive Share 34%
Estimated APRs Current Proposed
Supply Side 16.63% 10.99%
Borrow Side -4.98% -4.98%

MFAM Incentives

Current Proposed
Supply Side 0.6567 MFAM / sec 0.6567 MFAM / sec
+0.00% 56,741.35 MFAM / day 56,741.35 MFAM / day
1,588,757.92 MFAM / cycle* 1,588,757.92 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
-66.67% 30.13 MOVR / day 18.08 MOVR / day
843.71 MOVR / cycle* 506.23 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 $0.9993
Supplied 1,046,980.13 FRAX
Borrowed 418,492.80 FRAX
Supplied TVL $1,046,254.44
Borrowed TVL $418,202.73
Utilization 39.97%
MFAM Incentive Share 21%
MOVR Incentive Share 21%
Estimated APRs Current Proposed
Supply Side 22.40% 12.96%
Borrow Side -2.02% -2.02%

MFAM Incentives

Current Proposed
Supply Side 0.4636 MFAM / sec 0.4056 MFAM / sec
-14.29% 40,052.72 MFAM / day 35,046.13 MFAM / day
1,121,476.18 MFAM / cycle* 981,291.65 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 0.0001 MOVR / sec
-90.48% 21.27 MOVR / day 11.17 MOVR / day
595.56 MOVR / cycle* 312.67 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.

Config Hash: 49e3b277a6936f5c730b8fd11e3bc01255fd73b87741841180f5e0c67f8f3783

Proposal Config 
{
  "_meta": {
    "generatedAt": "2024-01-16T22:17:08.856Z",
    "generatorVersion": "1.0.24"
  },
  "snapshotBlock": 5960642,
  "safetyModuleInfo": {
    "totalStaked": "330556637.615613613120947305",
    "stakedTVL": "593869.1782187416697145828140796932955350982372776775",
    "govTokenPrice": "0.0017965731455355615333035055",
    "emissions": {
      "emissionsPerSecond": "2.124710292658730158",
      "lastUpdateTimestamp": 1705439472,
      "emissionAPR": "20.284196383185877035",
      "emissionsPerYear": "67050757.5316071428341008"
    }
  },
  "dexInfo": {
    "govTokenTotal": "67642757.616030842745277287",
    "nativeAssetTotal": "4694.953416762512845871",
    "govTokenPrice": "0.0017965731455355615333035055",
    "nextFreeSlot": 37,
    "emissionsPerYear": "75178155.2142857142546576",
    "poolTVL": "243050.3236458641910507041948550824962786277266295785",
    "currentPoolAPR": "55.569995860479995508",
    "currentPoolRewardInfo": {
      "startTimestamp": 1703820600,
      "endTimestamp": 1706239800,
      "rewardPerSec": "2.382251984126984126"
    }
  },
  "marketData": {
    "assets": {
      "MOVR": {
        "price": "25.88421035",
        "totalSuppliedUnderlying": "160795.018462179107734366999339753123930648",
        "totalSuppliedTVL": "4162052.0811071775439716673350084809768905116438068",
        "totalBorrows": "22552.175213418898478856",
        "totalBorrowedTVL": "583745.2470741909108920037313596",
        "utilization": "0.14025419088915019542",
        "baseSupplyAPR": "136885690",
        "baseBorrowAPR": "1301310521",
        "govSupplySpeed": "811253020833333333",
        "govBorrowSpeed": "1",
        "nativeSupplySpeed": "430815972222222",
        "nativeBorrowSpeed": "1",
        "nativeSupplyBorrowSplit": {
          "SUPPLY": 1,
          "BORROW": 0
        },
        "govSupplyBorrowSplit": {
          "SUPPLY": 1,
          "BORROW": 0
        }
      },
      "xcKSM": {
        "price": "42.30961087",
        "totalSuppliedUnderlying": "47746.565747034171999989891943020136",
        "totalSuppliedTVL": "2020138.61713588667391222197204253016673447832",
        "totalBorrows": "9102.329535108754",
        "totalBorrowedTVL": "385116.02064095938487055598",
        "utilization": "0.19063841331193866533",
        "baseSupplyAPR": "220324841",
        "baseBorrowAPR": "1540961503",
        "govSupplySpeed": "656728635912698412",
        "govBorrowSpeed": "1",
        "nativeSupplySpeed": "348755787037037",
        "nativeBorrowSpeed": "1",
        "nativeSupplyBorrowSplit": {
          "SUPPLY": 1,
          "BORROW": 0
        },
        "govSupplyBorrowSplit": {
          "SUPPLY": 1,
          "BORROW": 0
        }
      },
      "FRAX": {
        "price": "0.99930687",
        "totalSuppliedUnderlying": "1046980.129887404438662320998854983695090616",
        "totalSuppliedTVL": "1046254.43654997558202375098430104734024203784133192",
        "totalBorrows": "418492.797183856403684599",
        "totalBorrowedTVL": "418202.72727134435729551309389513",
        "utilization": "0.39971417339970190782",
        "baseSupplyAPR": "215318536",
        "baseBorrowAPR": "633742664",
        "govSupplySpeed": "463573154761904761",
        "govBorrowSpeed": "1",
        "nativeSupplySpeed": "246180555555555",
        "nativeBorrowSpeed": "1",
        "nativeSupplyBorrowSplit": {
          "SUPPLY": 1,
          "BORROW": 0
        },
        "govSupplyBorrowSplit": {
          "SUPPLY": 1,
          "BORROW": 0
        }
      }
    },
    "totalTVL": "7228445.13479303979990764029135205848386702780513872",
    "govRewardSplits": {
      "MOVR": 0.45,
      "xcKSM": 0.34,
      "FRAX": 0.21
    },
    "nativeRewardSplits": {
      "MOVR": 0.45,
      "xcKSM": 0.34,
      "FRAX": 0.21
    }
  },
  "config": {
    "daysPerRewardCycle": 28,
    "rpc": "https://rpc.api.moonriver.moonbeam.network",
    "govTokenName": "MFAM",
    "nativeTokenName": "MOVR",
    "networkName": "Moonriver",
    "dexName": "SolarBeam",
    "govTokenUniPoolAddress": "0xE6Bfc609A2e58530310D6964ccdd236fc93b4ADB",
    "ecosystemReserve": "0xbA17581Bb6d89954B42fB84294e476e97588908B",
    "treasuryAddress": "0x45DD368E30C07804b037260071d332e547C874F0",
    "dexPoolID": 11,
    "submissionRewardAmount": 250000
  },
  "responses": {
    "name": "Curly",
    "network": "Moonriver",
    "mipNumber": "R11",
    "componentSplits": {
      "ALL_MARKETS": 0.3,
      "SAFETY_MODULE": 0.33,
      "DEX_REWARDER": 0.37
    },
    "emissionAmounts": {
      "0": 15576058,
      "1": 1488.9
    },
    "submitterWallet": "0x9F94Ff95cbC403cbfC18802eDEAeF71dA8155f36"
  }
}
2

As you may know, we have received grant funding from the Moonbeam Foundation in the form of GLMR and MOVR, which we then pass on to the community in the form of boosted Supply-side rewards. With the last tranche of these rewards coming to an end, naturally, we would be applying for a top-up grant, but it seems that the Moonbeam Ecosystem is in the midst of a transition to a new governance mechanism (Gov 2.0), and as a result, they have requested that we hold off on requesting more funds until that has been sorted out.

So rather than apply the usual amount of rewards to the adjustment, I have opted to reduce the overall GLMR/MOVR so that we can make the last bit of grant funding last us a few more months (until June), when they will hopefully have the new governance mechanism up and running and we can secure a new tranche of funds.

I understand this may seem abrupt and the sudden drop of rewards, may require you to adjust your positions, but I did my best to spread these reductions out while also taking into consideration the current market dynamics to balance things out.

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