mStable has completed a DAO-to-DAO treasury swap with Balancer DAO, following the launch of the Emissions Controller last week and the successful resolution of TDP 29.The token swap of 20,000 BAL and 334,000 MTA occurred on-chain, totaling ~US$290K in current market value.Balancer DAO will stake the MTA and vote for its pools with the Emissions Controller, directing higher incentives and potentially attracting more liquidity to its pools through aligned interest and mutual collaboration.This opportunity demonstrates the utility of the Emissions Controller, where DAOs can take an active stake in mStable’s protocol governance and direct MTA emissions favorably to their use case, forging an alternative path to growing and attracting liquidity with mStable’s growing suite of DeFi products.BackgroundmStable and Balancer have been maintaining a long-standing relationship going back to 2020 — mStable was one of the first users of Balancer Protocol in August 2020 and at one point in time, even had the biggest pool on Balancer Protocol.mStable has also utilized Balancer as its major source of liquidity for MTA on Polygon with an incentivized MTA/ETH/MATIC pool. Aside from Polygon, the MTA/WETH Balancer Pool on Mainnet also receives weekly MTA incentives as a Staking pool.With a strong and growing partnership, it is proposed that it would be highly beneficial for the Balancer and mStable Treasury DAOs to perform a DAO-to-DAO token swap, especially with the launch of the Emissions Controller.In addition to getting exposure to a complementary project, mStable would diversify its treasury — currently sitting on US$5m of liquid MTA to be deployed and allow the Asset Management SubDAO to explore liquidity provision opportunities on the 80/20 BAL/WETH Pool on Balancer Protocol.By staking the swapped MTA, Balancer Protocol will have the power of controlling MTA emissions to direct them to their own pools and ensure they are incentivized.Agreement and timelinesTDP 29 was initially proposed on the forum to swap 20,000 BAL against the equivalent USD value of MTA using the 30-day SMA.MTA tokens would be sent from the mStable Treasury Asset Management subDAO to the Balancer TreasuryDAO and BAL tokens vice versa.The proposal was then taken to a Snapshot vote on mStable on December 6, 2021, which resolved on December 10, 2021, with 100% of voters voting For.On Balancer DAO’s end, the vote started on the same day on Snapshot, and resolved on December 9, 2021, with execution extended to December 10, 2021, so that both protocols have the same voting window. The vote was resolved favorably with 99.25% of voters voting For.With the votes completed, transactions were sent on-chain from both sides (mStable | Balancer). Balancer DAO will vote on the Emissions Controller for Epoch 2 starting December 23, 2021.What’s nextThis DAO-to-DAO swap represents a significant milestone for both projects and not only does this help to diversify the treasury and get exposure to a complementary project for both Protocols, it allows Balancer DAO to take a position in mStable’s governance and vote for its pools to direct more emissions and liquidity towards Balancer Protocol.Both projects are aligned to build a long-term strategy properly utilizing the swapped token:mStable will leverage Balancer Protocol to direct emissions and incentivize liquidity in its pools while allowing the Asset Management SubDAO to explore liquidity provision opportunities on the 80/20 BAL/WETH Pool on Balancer.Balancer DAO will pioneer the mechanics of the Emissions Controller by staking the received MTA, voting on their own pools using the Emissions Controller for Epoch 2 (starting on December 23, 2021) and beginning to earn a share of the weekly epoch incentives.Stay in the LoopWebsite | Discord | Twitter | ForummStable and Balancer DAO Announce Treasury Swap was originally published in Balancer Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

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