Hello, I am dimsome from mStable and I would like to formally propose a partnership with mStable and I would like to ask you, the community, for your interest.
Background
At mStable, we initiated a governance vote to add alUSD into a Feeder Pool. This pool would not just provide swaps from and to alUSD and mUSD, but also provide a way to efficiently swap into SAVE and earn interest on stable coins directly from the Alchemix ecosystem. The vote will end this Friday, 2nd July. Here is the link to (Snapshot)[https://snapshot.org/#/mstable/proposal/QmckdX8K245EU6CZz4XVyMAGW7bTf3T7kQ2n8zUcnsisN6].
What is a Feeder Pool?
Feeder Pools are essentially pools providing swaps and plug into the wider part of mStable. Feeder Pools provide an efficient way to swap assets that trade around the same price. Unlike other swaps, a Feeder Pool plugs into the wider mStable protocol, hence the name Feeder Pool, because it Feeds into the mStable ecosystem. Holders could easily swap their alUSD to any other stablecoin available on mStable or swap and earn an interest rate in the mStable SAVE. Users can also provide liquidity to the pool and earn a dynamically allocated amount of MTA tokens and swap fees for doing so.
How will this benefit Alchemix?
Alchemix alUSD is a money lego that is unlike any other! Adding an alUSD/mUSD Feeder will benefit Alchemix in the following ways:
- Adds an additional use case for alUSD in the Feeder Pool for earning swap fees.
- Provide Efficient swaps with low free from and into alUSD.
- Gives users the ability to use alUSD and directly deposit into SAVE. Essentially earning interest on the interest of the self-repaying loan.
- Diversifies trading of alUSD to other protocols, less concentration on a few dominating protocols dictating the market.
What will the future bring?
This Feeder Pool is just the beginning, and we hope that a mutually beneficial regenerative cycle can be established that brings both protocols and their use-case closer together over time. mStable has a clean track record of fantastic collaborations in the past, and we hope the Alchemix community wishes to see this thing come together in a smooth and professional way
We are also currently exploring a new mStable Asset: mETH. The assets that are included in this basket are still up for discussion. alETH is definitely a strong contester.
The mStableDAO has also expressed interest in utilizing the Alchemix contracts in the future once contract interaction with the protocol has been enabled, and would love to further collaborate around other possible DAO<>DAO interactions in the future if a similar interest is seen on the side of Alchemix.
The proposed partnership
In order to bootstrap liquidity, we would like to ask the community to weigh in about co-incentivization for the Feeder Pool. mStable will allocate around 20k-60k (dependent on swap volume and TVL of the pool) of MTA rewards per week. We would like to ask Alchemix to match this amount for a period of 3 months, with an option to re-evaluate the proposed partnership at this stage. At current prices, that would be around 50-100 ALCX per week.
In closing
We would love to establish more collaboration with Alchemix and we can start by co-incentivizing an alUSD/mUSD Feeder Pool. This can be a start of a beautiful friendship and more products are coming in the future that can be closely integrated benefitting both protocols.
What are your thoughts? Let's discuss and I am happy to decide this in an ALCX Snapshot vote.