This is the first MIP on Avalanche. A MIP is a “MOR Improvement Proposal”, all suggestions for the next executive proposal are put in place in a MIP, discussed in the forum and the final result of it is the executive proposal that goes live on-chain for GRO holders to vote on through the Governance Page
- Onboard the Curve PSM and tighten the peg spread
- Withdraw 100,000 MOR from surplus for WHEAT
- Refund MOR lost in repayment at block 7819191
This PSM (Peg-Stability Module) would be backed by av3CRV LP tokens also known as the AAVE Avalanche Curve pool. It holds a bit over 600 Million $ in TVL at the time of this post and is providing a yield of 14%+.
Onboarding this PSM would enable us to:
- Tigthen the peg spread from 1.1% to 0.1%
- Allow minting and redeeming MOR with the top 3 stablecoins: DAI, USDC and USDT
- Higher yields for the PSM
- Implement Curve type PSMs across all current and future chains
It is also important to note that volumes on MOR/Volatile pairs will increase as a direct result of having a smaller peg spread.
The changes proposed would be adding this PSM with a debt ceiling of 100,000,000 MOR, 0.1% tin (mint fee) and 0% tout (redeem fee).
As part of revenue sharing from MOR Yield (to be announced this week) WHEAT gets a share of the system surplus generated by MOR by incentivizing the outstanding MOR in circulation with staking rewards and offering bonds that hold it in LPs (such as with WHEAT/MOR or MOR/AVAX).
As a result the proposal is to withdraw 100,000 MOR from the surplus (around half of the current surplus) and give it to WHEAT which can then be used for the following:
- Buyback and burn WHEAT Avalanche
- Add more liquidity to WHEAT/MOR
- Add funds to EBCs such as the atricrypto EBC soon to be released
This 100k MOR would be used to acquire WHEAT/AVAX liquidity (which also involves buybacking WHEAT).
WHEAT has many revenue sources that add value to the token and increase its treasury such as:
- Revenue Sharing from MOR
- EBC Principal Growth
- EBC Farm Yield
- Performance Fees on MOR collaterals
And many more products to be built on top of it.
25,000 MOR would also be withdrawn from surplus to buyback GRO and acquire GRO/AVAX liquidity.
On block 7819191 two txs happened leading to a very low chance event:
Event 1: The bark function that initiates the liquidation for a certain CDP was called, this starts the dutch auction process and sets the collateral of the CDP aside.
Event 2: In the same block the owner of this CDP tried repaying the debt with 17,491.79 MOR, the MOR was burnt but no collateral was returned to the user since it was no longer in the CDP but rather waiting for liquidation.
The liquidation auction completed a couple hours later and the same debt was repaid twice as a result (the user repayment + the liquidation), liquidation tx can be found here.
The proposal is to refund the 17,491.79 MOR that was “donated” to the surplus in this highly unlikely sequence of events.
It is highly unlikely that we’ll see similar things repeat as it requires both the user’s repayment tx and the bark tx to confirm in the same block and the bark tx has to be within the block at a higher priority position.
-Onboard Curve PSM with 100,000,000 debt ceiling, 0.1% tin and 0% tout.
-Withdraw 142,491.79 MOR from system surplus
-Specify use of the WHEAT surplus withdrawal to acquire WHEAT/AVAX liquidity
-Withdraw 25k MOR from surplus to acquire GRO/AVAX liquidity