TDP 23.2: Strategy for Incentivized Liquidity Provision on Balancer Finance Source


Simple Summary & Abstract

In line with TDP 23.1, the mStableDAO wants to gather feedback and decide on the preferred strategy from Meta Governors on the liquidity position they would like the Asset Management subDAO to use for the BAL tokens.

The mStableDAO is proposing to begin accruing BAL rewards from the 80/20 BAL/WETH pool on Balancer Finance, as this is currently the only worthwhile pool incentivized on the platform on Ethereum Mainnet.

Other pools were suggested, but Balancer Finance stopped incentivization of these pairs since then, so they have been omitted here.


This proposal aims to:

  1. Find consensus on which farm to utilize on successful passing of MDP23.1
  2. Outline the strategy the Asset Management subDAO is going to use for this particular farm
  3. Generate a transparent process that has had the historic input of all Meta Governors prior to deployment of this strategy
  4. Include the best opportunity in the DeFi space to utilize our BAL token allocation


This proposal assumes the successful passing of TDP 23.1, and now seeks to decide on how to put the BAL tokens in question to use.

Once a decision on the strategy has been made, it is proposed to have the current Cat Herder liaison with the lead signer from the subDAO (@jwpe) on a bi-weekly basis to determine the right schedule on harvesting and compounding rewards, keep a curated transaction history of all events relating to this venture, and inform the wider mStable community and it’s stakeholders on the results on a quarterly basis in form of a Transparency Report designed for this purpose.

In its current form, it is proposed to harvest and compound 100% of all BAL rewards from the position back into the same position via single-sided liquidity entry at a time that has desirable market conditions for BAL compared to the rest of the pool allocation, as to maximize opportunity.

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