Summary
The objective of this proposal is to migrate the Mars Protocol Outpost on Neutron from its current version to v2.
The v2 version of Mars Protocol has already been deployed on Osmosis for almost one year. The v2 version to be deployed on Neutron will contain the same enhancements outlined in this Osmosis v2 proposal alongside a number of additional ones.
In the next few sections we’ll highlight the most important aspects of these additional upgrades and the risks associated with the migration.
Deep Astroport Integration
Mars v2 on Neutron looks to integrate Astroport as a first-class citizen. This gives Mars users the ability to use Astroport LPs as collateral, and additionally to manage their own leveraged or hedged LP strategies on Astroport directly from the Mars Credit Account. It also enables the possibility for vault builders to use Mars Protocol in a permissionless manner as a leverage primitive on top of Astroport.
The following features are now directly available from a Mars v2 on Neutron Credit Account:
- Zap/Unzap Astroport LPs
- Staking Astroport LPs in the Astroport incentives contract to accrue external pool rewards
- Tracking external pool rewards from the Astroport incentives contract and claiming them from within the Mars Credit Account
- Pricing of Astroport PCL, StableSwap and XYK pool LP positions (both LP tokens and staked LP positions in the Astroport incentives contract), enabling Astroport LPs to be used as collateral in Mars Credit Account
- Trading any asset available on Astroport from within the Mars Credit Account (Non whitelisted tokens will have a collateral power of 0)
Managed Vaults
Managed vaults bring a new use case to Mars Protocol. Users can now become a vault manager who would manage the assets of other users that are willing to deposit into their vault bound Mars Credit Account.
Creating a vault is permissionless and it is expected to run primarily from a social reputation standpoint. The vault manager can utilize their unique knowledge or skill set in an attempt to make their vault share token holders a profit. If they do this successfully they can earn a performance fee as a reward.
The use cases of these managed vaults are very flexible, where the vault manager could, for example, do anything from points farming, yield hunting or arbitrage, trading and interesting delta neutral investment strategies. A vault can be actively managed by an individual, a bot or even an immutable smart contract.
Users wanting to withdraw from the vault will need to trigger a withdrawal and wait for the cooldown period. This period gives the vault manager a chance to adjust the vault positions or strategies based on the outflow of funds occurring within the cooldown period. Once the cooldown period elapses the user will be able to withdraw their assets, providing the withdrawal of funds doesn’t make the vault Credit Account health factor unhealthy.
Risks
Mars v2 Neutron release has undergone software audits by Oak Security, but it still contains new and unproven smart contract code risks. To help minimize risk, all tokens approved for borrowing and lending would adhere to Mars’ Risk Framework.
Implementation
This is a signaling proposal, not an executable proposal.
The Mars smart contracts on the Neutron chain are currently controlled by the Builder Multisig address. If this proposal passes, the builders will utilize their multisig to make the necessary parameter changes.
Copyright
Copyright and related rights waived via CC0.
Disclaimers/Disclosures
This proposal is being made by Mars Protocol Foundation, a Cayman Islands foundation company. Mars Protocol Foundation engages in research and development of the Mars Protocol. Mars Protocol Foundation and certain of its service providers and managers own MARS tokens and have financial interests related to this proposal. The aforementioned persons or their affiliates may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including Neutron/NTRN. These statements are intended to disclose relevant facts and to help identify potential conflicts of interest, and should not be misconstrued as a complete description of all relevant interests or conflicts of interests; nor should they be construed as a recommendation to purchase or acquire any token or security.
This proposal is also subject to and qualified by the Mars Disclaimers/Disclosures. Mars Protocol Foundation may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Mars Protocol Foundation is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Mars Protocol Foundation shall have no liability in the event of losses or damages ensuing from approval or rejection or other handling of the proposal. Each user and voter should undertake their own research and make their own independent interpretation and analysis of all relevant facts and issues to arrive at their own personal determinations of how to vote on the proposal.