MCCP 3: Increase Save liquidator's weekly USD contribution
| Author | James Eddington |
|---|---|
| Discussions-To | https://forum.mstable.org/t/pdp16-increase-save-liquidators-weekly-usd-contribution-mccp-3/370 |
| Status | Implemented |
| Created | 2021-03-01 |
Simple Summary
This mStable Configuration Change Proposal (MCCP) proposes increasing the maximum amount of COMP, AAVE and other lending platform tokens earned via SAVE that can be liquidated each week. The current maximum is 5,000 USD worth of tokens each week. It is proposed to change this parameter to a value somewhere in the range between 10,000 -20,000 USD worth of tokens liquidated weekly.
Numbers out side of this range can also be put forward should community feedback make a strong case for the change.
Abstract
As defined in MIP-2reward tokens (such as $COMP, $LEND) that have accrued in the mStable protocol are liquidated, with proceeds being used to bolster the Save product’s USD APY. This works through a liquidator mechanism that currently liquidates c.5,000 USD worth of tokens per week.
These reward tokens that have accrued to the protocol have increased in market value since the original MIP, and now represent a more sizeable total USD value pool that can be liquidated. On top of this, it is expected that the protocol will earn tokens from other platforms such as Aave.
It is proposed to increase the liquidation amount to capitalise on these increased price levels while the market is in a favourable position. This will bolster the Save APY, and mean that concurrent proposals seeking to channel some of these Save APY flows to destinations other than savers (such as the Buyback and Make pool) will have a minimal impact on yields.
Motivation
This has been proposed by the ProtocolDAO as its signers believe that now is an opportune time to bolster Save APYs whilst mStable engages in more aggressive growth strategies. These strategies, such as a Buyback and Make pool detailed in MIP-8, will draw down from flows that were previously going to Savers.
This MCCP is motivated by a desire to pursue these long term growth strategies that benefit mStable as a protocol whilst minimising Save APY dilution.
Copyright
Copyright and related rights waived via CC0.