Hi All,
I have asked @edwardk and EWG to pause work on the v3 staking contract for MVI.
We still need to migrate liquidity from v2 to v3 as we currently have liquidity split over 2 pools (i.c sushiswap on polygon) with v2 currently the deepest.
| v2 | v3 | polygon | |
|---|---|---|---|
| AUM ($ m) | $5.5 | $1.0 | $1.0 |
| 24 h vol ($ M) | $1.2 | $1.0 | $0.1 |
| 0.5% trade size ($) | $14,000 | $9,500 | $3,000 |
The reasons for the delay are a combination of:
- Beta finance vault is delayed, so some time pressure has eased.
- The v3 staking contract has some unusual behaviour which gives a poor LP experience (rewards drop overt time)
- Reports that the v3 staking contract can be gamed by more active LP’s.
- A belief that a automated liquidity manager will provide benefits for INDEXcoop (liquidity is managed closer to the price) and LP’s (no need to claim rewards, or reposition).
- The lower gas cost to LP’s is expected to make any liquidity both more effective, and more sticky.
@jdcook and @Matthew_Graham are currently working with VISR (@bp333 ) to set up a $MVI:ETH vault. Once this is up and running, we are intending to propose an IIP to:
- cancel this IIP.
- [potentially] assign similar INDEX rewards to encourage LP migration.
I apologise for the delay in communicating this change in strategy.
@DarkForestCapital, @verto0912 and @oneski22 for info.