MIP-R13 Rebalancing of Moonriver Token Liquidity Incentives

Proposals
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MIP-R13 Rebalancing of Moonriver Token Liquidity Incentives

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

  • Submitter: Curly
  • Generator Version: 1.0.25
  • Generated At: Tue, 13 Feb 2024 18:47:01 GMT
  • Network: Moonriver
  • Block Height: 6,141,451

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 331,586,441 MFAM staked in the Safety Module, with a valuation of $539,547.54 (based on a MFAM price of $0.001627 pulled from SolarBeam).

This proposal, if executed, would adjust the rewards on the Safety Module to decrease emissions -52.70% and emits 2,431,211 MFAM over the next 28 days:

  • Current (estimated APR = ~20.22%):
    • 2.1247 MFAM / second
    • 183,574.97 MFAM / day
    • 5,140,099.14 MFAM / reward cycle (28 days)


  • Proposed (estimated APR = ~9.56%):
    • 1.0050 MFAM / second
    • 86,828.95 MFAM / day
    • 2,431,210.65 MFAM / reward cycle (28 days)

DEX Liquidity Pool Rewarder

At the time this proposal was generated there were 68,933,773 MFAM and 4,952 MOVR provided by liquidity providers in the SolarBeam MFAM/MOVR pool totaling $224,333.95.

This proposal, if executed, would adjust the rewards on the Dex Rewarder to decrease emissions -52.70% and emits 2,725,903 MFAM over the next 28 days:

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

Proposed rewards will expire at Fri, 22 Mar 2024 03:30:00 GMT

  • Current (estimated APR = ~54.53%) days:
    • 2.3823 MFAM / second
    • 205,826.57 MFAM / day
    • 5,763,144.00 MFAM / reward cycle (28 days)


  • Proposed (estimated APR = ~25.79%):
    • 1.1268 MFAM / second
    • 97,353.67 MFAM / day
    • 2,725,902.85 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 $22.65
Supplied 158,428.47 MOVR
Borrowed 15,754.46 MOVR
Supplied TVL $3,588,759.45
Borrowed TVL $356,873.83
Utilization 9.94%
MFAM Incentive Share 55%
MOVR Incentive Share 55%
Estimated APRs Current Proposed
Supply Side 7.02% 7.72%
Borrow Side -3.55% -3.55%

MFAM Incentives

Current Proposed
Supply Side 0.8692 MFAM / sec 0.5025 MFAM / sec
-72.98% 75,098.85 MFAM / day 43,414.48 MFAM / day
2,102,767.83 MFAM / cycle* 1,215,605.32 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 0.0003 MOVR / sec
+18.18% 23.93 MOVR / day 29.25 MOVR / day
670.01 MOVR / cycle* 818.90 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

xcKSM Market
Latest price $43.10
Supplied 47,541.71 xcKSM
Borrowed 8,093.71 xcKSM
Supplied TVL $2,049,054.66
Borrowed TVL $348,839.93
Utilization 17.02%
MFAM Incentive Share 36%
MOVR Incentive Share 36%
Estimated APRs Current Proposed
Supply Side 9.52% 9.13%
Borrow Side -4.66% -4.66%

MFAM Incentives

Current Proposed
Supply Side 0.6567 MFAM / sec 0.3289 MFAM / sec
-99.68% 56,741.35 MFAM / day 28,416.75 MFAM / day
1,588,757.92 MFAM / cycle* 795,668.94 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
+5.56% 18.08 MOVR / day 19.14 MOVR / day
506.23 MOVR / cycle* 536.00 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 $0.9985
Supplied 572,075.67 FRAX
Borrowed 420,168.36 FRAX
Supplied TVL $571,225.06
Borrowed TVL $419,543.61
Utilization 73.45%
MFAM Incentive Share 9%
MOVR Incentive Share 9%
Estimated APRs Current Proposed
Supply Side 22.13% 9.98%
Borrow Side -3.74% -3.74%

MFAM Incentives

Current Proposed
Supply Side 0.4056 MFAM / sec 0.0822 MFAM / sec
-393.32% 35,046.13 MFAM / day 7,104.19 MFAM / day
981,291.65 MFAM / cycle* 198,917.23 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 0.0001 MOVR / sec 0.0001 MOVR / sec
-133.33% 11.17 MOVR / day 4.79 MOVR / day
312.67 MOVR / cycle* 134.00 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: ad24bd315fa8788d4bfd1f5df38b588e08c358d12f155d223d584deeb62a72ea

Proposal Config 
{
  "_meta": {
    "generatedAt": "2024-02-13T18:29:26.181Z",
    "generatorVersion": "1.0.25"
  },
  "snapshotBlock": 6141451,
  "safetyModuleInfo": {
    "totalStaked": "331586440.883766798388313414",
    "stakedTVL": "539547.539152575711805359173349306010173871757245932",
    "govTokenPrice": "0.001627170090895565000008338",
    "emissions": {
      "emissionsPerSecond": "2.124710292658730158",
      "lastUpdateTimestamp": 1707847824,
      "emissionAPR": "20.221200044518976893",
      "emissionsPerYear": "67050757.5316071428341008"
    }
  },
  "dexInfo": {
    "govTokenTotal": "68933772.849816187952203018",
    "nativeAssetTotal": "4951.694870519083138948",
    "govTokenPrice": "0.001627170090895565000008338",
    "nextFreeSlot": 38,
    "emissionsPerYear": "75178155.2142857142546576",
    "poolTVL": "224333.946867619270907196396704168083190315468764084",
    "currentPoolAPR": "54.52926200490575514",
    "currentPoolRewardInfo": {
      "startTimestamp": 1706239800,
      "endTimestamp": 1708659000,
      "rewardPerSec": "2.382251984126984126"
    }
  },
  "marketData": {
    "assets": {
      "MOVR": {
        "price": "22.65223855",
        "totalSuppliedUnderlying": "158428.468175366810230555999726832393906328",
        "totalSuppliedTVL": "3588759.4542194922190951350049459422226337082105444",
        "totalBorrows": "15754.461893365812383886",
        "totalBorrowedTVL": "356873.8290354070445343298480053",
        "utilization": "0.09944211463262376518",
        "baseSupplyAPR": "82575923",
        "baseBorrowAPR": "1107189154",
        "govSupplySpeed": "869199665178571428",
        "govBorrowSpeed": "1",
        "nativeSupplySpeed": "276953125000000",
        "nativeBorrowSpeed": "1",
        "nativeSupplyBorrowSplit": {
          "SUPPLY": 1,
          "BORROW": 0
        },
        "govSupplyBorrowSplit": {
          "SUPPLY": 1,
          "BORROW": 0
        }
      },
      "xcKSM": {
        "price": "43.10014374",
        "totalSuppliedUnderlying": "47541.713008580536999837129562638662",
        "totalSuppliedTVL": "2049054.66431564899805936864073872966588127588",
        "totalBorrows": "8093.706875374754",
        "totalBorrowedTVL": "348839.92971807816376713996",
        "utilization": "0.17024432573378174792",
        "baseSupplyAPR": "184369198",
        "baseBorrowAPR": "1443957662",
        "govSupplySpeed": "656728635912698412",
        "govBorrowSpeed": "1",
        "nativeSupplySpeed": "209253472222222",
        "nativeBorrowSpeed": "1",
        "nativeSupplyBorrowSplit": {
          "SUPPLY": 1,
          "BORROW": 0
        },
        "govSupplyBorrowSplit": {
          "SUPPLY": 1,
          "BORROW": 0
        }
      },
      "FRAX": {
        "price": "0.99851311",
        "totalSuppliedUnderlying": "572075.67078496840615395199965894228421728",
        "totalSuppliedTVL": "571225.0571908349444805257499701693995243001685408",
        "totalBorrows": "420168.356970033388917445",
        "totalBorrowedTVL": "419543.61284173821597179754020395",
        "utilization": "0.73446290137369976921",
        "baseSupplyAPR": "726979309",
        "baseBorrowAPR": "1164483290",
        "govSupplySpeed": "405626510416666666",
        "govBorrowSpeed": "1",
        "nativeSupplySpeed": "129244791666666",
        "nativeBorrowSpeed": "1",
        "nativeSupplyBorrowSplit": {
          "SUPPLY": 1,
          "BORROW": 0
        },
        "govSupplyBorrowSplit": {
          "SUPPLY": 1,
          "BORROW": 0
        }
      }
    },
    "totalTVL": "6209039.1757259761616350293956548412880392842590852",
    "govRewardSplits": {
      "MOVR": 0.55,
      "xcKSM": 0.36,
      "FRAX": 0.09
    },
    "nativeRewardSplits": {
      "MOVR": 0.55,
      "xcKSM": 0.36,
      "FRAX": 0.09
    }
  },
  "config": {
    "daysPerRewardCycle": 28,
    "rpc": "https://rpc.api.moonriver.moonbeam.network",
    "govTokenName": "MFAM",
    "nativeTokenName": "MOVR",
    "networkName": "Moonriver",
    "dexName": "SolarBeam",
    "govTokenUniPoolAddress": "0xE6Bfc609A2e58530310D6964ccdd236fc93b4ADB",
    "ecosystemReserve": "0xbA17581Bb6d89954B42fB84294e476e97588908B",
    "treasuryAddress": "0x5d6C4DCb86b8A761C062a5274a77AaD5F7209AA3",
    "dexPoolID": 11,
    "submissionRewardAmount": 250000
  },
  "responses": {
    "name": "Curly",
    "network": "Moonriver",
    "mipNumber": "R13",
    "componentSplits": {
      "ALL_MARKETS": 0.3,
      "SAFETY_MODULE": 0.33,
      "DEX_REWARDER": 0.37
    },
    "emissionAmounts": {
      "0": 7367305,
      "1": 1488.9
    },
    "submitterWallet": "0x9F94Ff95cbC403cbfC18802eDEAeF71dA8155f36"
  }
}
2

Hey folks I just wanted to add an extra comment here about this latest Reward Speed Adjustment.
After the latest Snapshot passed we began using MFAM originally set aside for Grants to provide supply liquidity, and have had to make adjustments to the amount of MFAM released per cycle in order for these funds to last another 2 years (or until we find another solution). As a result, the average reward per pool would drop, so I have given preference to the core pool MOVR and KSM and lowered the rewards for FRAX.

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