[PASSED] [EC Proposal] MIP-28: Expanded Strategies and Liquidity Programs

This proposal is authored by the Mantle Economics Committee (MIP-25).

Background

The Mantle Economics Committee recommends a set of amended Strategies and Allowances for the following reasons:

  • In response to community feedback for more active deployment of Mantle Treasury resources to support ecosystem growth through partnerships and liquidity support for applications.

  • To support the incoming cohort of Mantle Network applications including lending primitives, novel DEXs, vaults, and other trading applications.

  • To expand beyond the initial subscriptions and deployments under MIP-25 and MIP-26 - such as Ondo USDY, Lido wstETH, and Mantle LSP - which are soon approaching their allocation limits.

  • To generate returns for the Mantle Treasury to finance product development, growth, and tokenomic activities (see summary of development resources, and summary of development spending).

Note: The Economics Committee shall continue to serve as a decision-making and risk assessment body only. Consistent with prior frameworks, the principal assets, returns, farmed incentives, and negotiated incentives shall belong to the Mantle Treasury.

Proposal

By voting “Yes”, and interpreted under the MIP-25 and MIP-26 “strategies and allowances” framework, you endorse the following terms:

The combined strategy of MIP-26 “Liquidity Support for Applications” and “Liquidity Support for Third Party Bridges” shall be amended to the following:

1\ Strategy: Liquidity Support for Applications

a. Combined allowance: 300M USDx, 250k ETH, 2,000 BTC, and 400M MNT.

Comment: The conditions and restrictions applicable to individual projects under “EcoFund v Other” categories shall be removed. Liquidity support for each application will be evaluated based on individual factors, irrespective of EcoFund investment status. Factors include internal and external audits, risk assessments, product maturity, and synergies with other applications (positioning within the DeFi stack, composability, usage). These factors make it challenging to specify allocation limits per application type. Liquidity deployments can be tracked by the community via publicized wallet sets, liquidity deployments will be scaled up gradually, and we will respond to community concerns.

2\ Strategy: Seed Liquidity For RWA-Yield-Backed Stablecoins

Amendments:

a. Amend the strategy name to “Strategy: Subscription to Yield-Bearing Assets”.

b. Set the combined allowance to: 250M USDx.


3\ (new) Strategy: Asset Rebalancing

a. Authorized rebalancing between BTC, ETH, USDC, USDT, and MNT assets.

Comment: There are requests to support wBTC liquidity for AMM, lending, and margin trading applications. There are requests to concentrate liquidity with either USDC or USDT pairs instead of fragmenting between two pools for better user experience for depth and trade execution.

4\ (new) Strategy: Subscription to Market Neutral Liquid Funds

a. Combined allowance of: $100M equivalent.

b. Mandatory criteria: a maximum of 15 day redemption notice, and daily NAV position tracking or live dashboards available to the Economics Committee.

c. Preference criteria: funds that maintain assets on on-chain trackable addresses, and exhibit high Sharpe ratios with liquid farming and high-frequency trading strategies.

Comment: This newly introduced strategy aims to diversify the approach to generating returns for the Mantle Treasury to finance continued ecosystem growth and other tokenomic activities. While the current strategies, such as ~5% through Treasuries backed RWA subscriptions and ~4% through ETH Staking Strategies, offer stable returns, this strategy seeks to explore opportunities with more optimized risk-return outcomes.

Notes - MEC Updates

Status of ETH-Staking

Lido stETH: In August 2023 , Mantle Treasury subscribed to 40k ETH equivalent of Lido wstETH. These assets are currently held in Mantle Treasury L1. The Mantle Core Contributor team is working with Lido for an official wstETH on Mantle L2, after which we can deploy these wstETH assets to bootstrap liquidity for applications.

Mantle LSP mETH: In October 2023, the smart contracts and offchain systems have completed audits and been deployed on Ethereum Mainnet. The protocol is currently in Permissioned Closed Alpha. Permissionless access is expected to be available within the next few weeks. Stay tuned for updates.

Status of RWA

Ondo USDY and mUSD: In September 2023, Mantle Treasury subscribed to $30M of Ondo USDY, and received the tokens in the Mantle Treasury L2. USDY has since been paired to create USDY-USDC AMM pools on various L2 DEXs such as FusionX and Agni. A rebasing version, mUSD, will be available soon (blog post, Ondo docs).

Ethena USDe: We are currently negotiating with Ethena to subscribe to the Guarded Mainnet Prelaunch program for USDe, the inclusion of mETH into their collateral basket, and the adoption of USDe on Mantle L2. Stay tuned for updates.

Status of Deployment Tracking

The status of MIP-25 and MIP-26 treasury deployments can be monitored using the following wallet sets: Treasury Core Holdings, and EC Service Provider.

Collaborative efforts with the Mantle Core Contributor team and third-party analytics providers are underway to establish real-time and published “bundles”, enhancing transparency for the community.

16 Likes

Reserved for comments.

4 Likes

Hello, thanks for the proposal!

You mention different directions of liquidity provision but don’t mention any projects that will receive this liquidity. Will the names of the projects and the $ amounts provided be published before the distribution starts? (maybe in some kind of short-list of projects like Arbitrum did with the liquidity incentives).

Or should we expect this announcement with project names to be already after the liquidity distribution?

6 Likes

I like the proposal, more liquidity strengthens the network. I think the proposal needs some adjustments, I thought the values ​​were too high, progressive release is a good way, making it clear which apps will receive liquidity and how much they will receive, among other small adjustments.

6 Likes

Thanks for your comment SiberianViki,

Existing liquidity deployment wallet addresses can be found at the following link: Treasury-Holdings-ECSP. Observers can already plug these addresses into analytics providers (such as DeBank).

For convenience and community transparency, the Mantle team is in discussion with analytics platforms (such as DeBank, Nansen) to have a publishable bundle. This feature will be communicated as soon as available.

5 Likes

so great sir.thanks so much

1 Like

Voting on this proposal has closed. MIP-28 has passed with 137M MNT voting YES and 5.9K MNT voting NO:

https://snapshot.org/#/bitdao.eth/proposal/0x1f23e992b5123d0948e48681da08cb511e3dc6405baf0d301198ecce4c1e1d5a

This thread will be archived. We’d like to thank the community for participating in Mantle governance!

2 Likes