Summary
The objective of this proposal is to deprecate the stkATOM market on Neutron.
Motivation
The pSTAKE team have recently shifted focus towards the BTC ecosystem with Babylon enabling slashing/PoS of BTC and pSTAKE building an LST on top of this.
Additionally, pSTAKE contributors have debated the usefulness of POL and intended to return the stkATOM POL to the Cosmos Hub in everyone’s best interest. pSTAKE’s POL agreement is also coming to an end in the coming weeks.
Mars Protocol currently supports the stkATOM market and is dependent on this POL liquidity for a robust oracle price source and liquidity availability should stkATOM collateral need to be used in liquidation. However, the usage has been limited on Mars since the market went live.
Because of the situation outlined above it is proposed the stkATOM market on Neutron should be depreciated. Additionally the TWAP + Redemption Rate composite oracle used will be downgraded to just TWAP, as the Redemption Rate feed is dependent on the Persistence One chain pushing price feeds to Neutron.
Implementation
To avoid hurting current stkATOM depositors, this proposal will only affect future users of the platform. Current stkATOM depositors and borrowers will be able to continue using the platform as they have been doing so.
To deprecate the stkATOM market, the following parameters should be modified:
- stkATOM Deposit Cap = 0. This disallows new deposits into the market.
- stkATOM maxLTV = 0. This disallows new borrows where stkATOM would be used as collateral.
- Price source changed from stkATOM/ATOM TWAP + stkATOM Redemption Rate to just stkATOM/ATOM TWAP. This avoids the price source failing should Persistence One fail to push Redemption Rate updates to Neutrons Redemption Rate oracle contract.
Note that this won’t affect current depositors or borrowers in any way. This only affects future users of the Red Bank.
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.