Today, mStable introduces EARN: a hub that allows you to stream & keep track of your MTA rewards in real time.
Get started: https://t.co/aLx10Xe7wl
Learn more: https://t.co/LGj2pjfyyV
— mStable 🧮 (@mstable_) August 3, 2020
After roughly a month of liquidity incentives on Balancer, mStable has ported their MTA governance token distribution away from snapshots to an automated, yield tracking dashboard via their Earn feature.
Consisting of five different reward pools, mStable will adjust weekly allocations relative to where ecosystem liquidity is the most useful at any given time. For the first week, 100,000 MTA will be allocated as follows:
- mUSD <> USDC 50/50 (Balancer) — 15,000 MTA
- mUSD <> WETH 50/50 (Balancer)—20,000 MTA
- mUSD <> MTA 20/80 (Balancer) — 15,000 MTA
- MTA <> ETH 50/50 (Uniswap) — 25,000 MTA
- mUSD <> MTA 95/5 (Balancer) — 25,000 MTA
Sneaking its way into the incentive program is the MTA/ETH Uniswap pool – debatably the most crucial piece of liquidity for the sector’s hottest DeFi token. Seeing as Balancer provided a more modular liquidity onramp, it should come as no surprise that now that a strong base has been established, porting incentives to the fan-favorite DEX in Uniswap is the logical next step.
What’s To Know?
The biggest component of Earn is the necessity for LP’s to stake their liquidity tokens via the Earn dashboard. This notion is a new upgrade to MTA liquidity mining in which rewards were previously manually airdropped by simply being in the pool when random snapshots were taken throughout the course of the week.
Yo if you've been farming MTA the last couple weeks you gotta stake them now.
— weeb (@Weeb_Mcgee) August 4, 2020
The launch of Earn foreshadows the launch of MTA staking and mStable governance, two crucial pieces of the puzzle that are set to solidify mStable as a leading contender in the rising stablecoin liquidity wars.
It’s important to remember that for more conservative farmers, mStable also offers a Save feature in which users can stake mUSD for an estimated 30% APY at the time of writing.
Liquidity Mining Heats Up
As if it wasn’t obvious enough, just about every major DeFi token is now offering some sort of incentive for those providing value-added actions to their ecosystem. While driving deep liquidity on DEXs seems like the obvious first answer, it will be interesting to watch how the conversation evolves in the coming months.
Stated another way, projects which fail to incentivize liquidity are at the whims of projects offering double, and sometimes triple digital returns.
To add a somber note, I’m curious to watch incentives emerge which require specialized participation. Whether it be through the curation of protocol-specific assets or the ability to stake as a signal to earning opportunities, I’m forever curious about programs that incentivize knowledge over capital.
Alas, the launch of Earn is one of the more notable and well-designed liquidity mining features we’ve seen, and one you should definitely check out if you fancy yourself to be a yield farmer.
Cooper is the Editor of DeFi Rate and an active contributor to leading DeFi media outlets like The Defiant, DeFi Pulse, and Bankless. He works with early-stage teams through Fire Eyes DAO to incubate governance models and grassroots community development. He is an ambassador to Set Protocol and an author of a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.