[Proposal] Generate 20% APY Interest on locked UST (Short farming) to MIR Stakers

I’d like to propose to use the Short Farming Locked UST (14 days) to generate interest at Anchor and buyback MIR token to distribute to MIR stakers. 14 days can gather 0.74% interest on Locked UST amount. Together with the CDP 1.5%, MIR stakers would have 2.24% That’s 50% increase in stakers reward.

3 Likes

Or we just give short farmers their money right away? It’s their money.

The reason for the lock up is to make it harder/discourage people from taking the proceeds from the short sale and then immediately buying back the mAsset. The point is well intentioned but it doesn’t really seem to be a big enough deterant because people just use other UST to get to flat or just wait the two weeks before becoming delta neutral.

As for putting the locked UST in Anchor, that is interesting because it really is just sitting there and would help generate revenue for MIR platform at no additional cost to sLP participants.

4 Likes

There are 2 benefits brought by Staking the Locked UST at Anchor.

  1. More $MIR buyback and create buy pressure to increase the $MIR price.
  2. More staking return for MIR Governance staking. 50% more.
2 Likes

This is the right way. It would certainly encourage more transactions because the UST is available for the farmers so that they can trade more frequently.

2 Likes

The proposal is an interesting proposal. I would prefer that funds be unlocked within a day or two, but even then something could be done with them.

The 1.5% is a one-time fee (charged regardless of holding period). While the earnings on UST placed in Anchor would also be one-time, there is no guarantee it would actually be the full 14-days (vaults can be closed early if the minter uses other funds to cover their short). Finally, UST is based on terraswap price on open, while closing fee is based on oracle price at close. Adding the two together as percentages relies on far two many unstated assumptions.

The actual APR impact of your proposed change is unknown and unknowable.