Note: This post has been updated with additional information about the changes to the program, the address of the new 90/10 Balancer pool, and a tutorial on how to add liquidity to the new pool.
We are making significant changes to our liquidity mining program on Balancer. Please read this important article for details.
The purpose of our liquidity mining program is to reward our community members for increasing the liquidity of eMTRG. So we launched the 70% eMTRG / 30% USDC pool on Balancer to make eMTRG easily tradeable.
Unfortunately, the downside of pools like this is that the automated market maker is slow to react to big, immediate changes, compared to centralized exchanges. And it requires a lot of capital to move the market in either direction.
After analyzing recent trading activity in our pool, we found that there were four whales who bought eMTRG at a high price then dumped the tokens to mine SUSHI and KIMCHI, which were offering unsustainably high APRs. As you know, this has decreased the price of eMTRG to very low levels that no one is happy with. (We did see that very few of our community members actually sold eMTRG, and we thank you for your support.)
So we brought together as many eMTRG liquidity providers as possible and proposed a plan to have everyone withdraw liquidity from our 70/30 pool on Balancer and add it to a new 90% eMTRG / 10% USDC pool.
We believe moving to a 90/10 pool will provide a good amount of liquidity while making it much easier to respond to dramatic market movements. This structure will be more beneficial to our community members by providing less opportunity for arbitrageurs to take advantage of the pool, and minimize the impact of whales on the price of eMTRG.
After discussing the new plan with as many eMTRG liquidity providers as possible (thank you so much for your quick responses!), we held an emergency governance vote and received a vote of “Yes” from 186.23 BPT out of a possible 270 BPT in the pool (this does not include the 100 BPT from the initial liquidity that the Meter team provided to the pool). This is more than enough for quorum. You can view the vote distribution here.
Thus, we will be moving forward with the plan to migrate to a new 90/10 Balancer pool.
Details of the changes to the program
The first important detail is that we need to adjust the structure of the rewards for the new pool.
When we originally launched the current 70/30 pool, we designed the rewards structure for fast growth in a strong crypto market. Unfortunately, it is very difficult to achieve this goal with the current market sentiment. We have found the current APR to be unhealthy for the long-term life of this program. Thus, we would like to lower the rewards to a more sustainable level to protect the price of eMTRG until we have a better growth strategy for the asset.
Because many people still have not removed liquidity from the old pool, we will halt rewards for this week (until Saturday, Sept 12). Then we will decrease the rewards to about 30% APR moving forward. You will still receive about 20-30% rewards in BAL tokens.
As usual, eMTRG rewards will be calculated from Saturday to Saturday. And there will no longer be a vesting schedule for the new pool.
While this reward structure is obviously lower than what we originally planned, this is necessary for us to be able to continue the liquidity mining program while protecting the price of eMTRG. We hope you understand.
After the new reward structure is implemented, we will continue to monitor the market and how the liquidity mining program is going, and make necessary adjustments.
We will compensate you with 0.1 ETH to cover gas costs after we confirm you have joined the new pool.
We also plan on releasing the two-way bridge around Friday, September 11, so you will have the option to transfer your eMTRG to mainnet MTRG at that time. The MTRG -> eMTRG direction of the bridge will continue to be closed temporarily as we monitor this new structure.
Finally, the new 90/10 Balancer pool can be found here: https://pools.balancer.exchange/#/pool/0x57c9821179a4d94657161eeaad9dfdf5280f86db/
Now that there are currently three eMTRG pools (two on Balancer and one on Uniswap), we are not sure how trading bots will impact the price of eMTRG. Therefore, it may make sense to wait a couple of days before adding liquidity to the new Balancer pool to manage potential impermanent loss. You will have to weigh this against the opportunity to accrue BAL for this week.
Please read below for instructions on how to move your liquidity from the current pool to the new pool.
How to remove liquidity from the 70/30 pool and add it to the new 90/10 pool
1. Remove liquidity from the 70/30 Balancer pool
Here are instructions on how to do remove liquidity from the 70/30 Balancer pool:
a. Navigate to the 70/30 Balancer pool and connect your wallet.
b. Click on the “Remove Liquidity” button in the upper right hand corner.
c. A modal will appear. Make sure you remain in the “Multi assets” tab. Click on the “Max” button in the BPT amount box, and the amount field will auto-populate. Then click on the blue “Remove Liquidity” button at the bottom.
d. Metamask (or the ETH wallet you’re using) will ask you to pay gas fees. Click “Confirm”.
e. You should then see a notification on Balancer that you’ve successfully removed liquidity. Click out of the modal, refresh the page, and you will see that your pool share is 0%. You’re all done.
2. Add liquidity to the new 90/10 pool
a. Navigate to the new 90/10 pool and connect your wallet. Make sure you are using the same wallet that you used to add and remove liquidity from the 70/30 pool so we can continue to provide the correct amount of rewards, and you won’t have to set up another proxy contract.
b. Click on the “Add Liquidity” button in the upper right corner.
c. A modal will appear. Please remain in the “Multi assets” tab. Enter the amount of eMTRG (or USDC) that you would like to contribute. The amount of the other asset will automatically populate based on the 90% eMTRG / 10% USDC ratio of the pool. Please do not add eMTRG as a single asset to this pool, as this may crash the price unintentionally.
d. Review any warnings Balancer provides, and check the box next to the warnings if you’re OK with moving forward. Then click “Add Liquidity”.
e. Your ETH wallet will ask you to pay gas fees. Click “Confirm” in your ETH wallet.
f. Once the transaction goes through, you’ll see a “You’ve successfully added liquidity” message at the bottom of the page.
g. When you return to the pool (you may have to refresh your screen), the “My pool share” metric should be updated. You’re all done.
As with the current pool, you will receive Balancer Pool Tokens (BPT) in your ETH wallet for adding liquidity. Please don't move these tokens, as we will use these to track your eMTRG rewards. And BAL tokens will be dropped into your wallet as well.
We want to continue to reward you for contributing liquidity to the eMTRG ecosystem, but we have to do so in a long-term sustainable way. We hope you understand why we need to make these changes.
Please let us know if you have any questions or concerns in the Meter Liquidity Mining Governance group on Telegram.
Thank you so much for your support and patience as we work to improve this program to be rewarding and sustainable over the long term.