[MRC-31] Deploy a Mars Outpost on Neutron


This is a non-binding signaling proposal to encourage discussion around and assess support for deploying a Mars Outpost on Neutron as follows:

  • Install a Red Bank outpost enabling the borrowing and lending of the most liquid assets on Neutron including any applicable tokens and liquid staking derivatives (LSDs) that adhere to the Mars Risk Framework
  • Utilize IBC and Mars’ “hub and outpost” architecture to re-direct borrowing fees on Neutron per the protocol’s pre-existing fee and value flow model. Specifically:
    • 80% of all fees would flow to Red Bank lenders on Neutron
    • 10% of all fees would flow to MARS stakers on Mars Hub
    • 10% of all fees would be converted to USDC and flow to the Mars Safety Fund on Mars Hub
  • Outpost governance would occur on Mars Hub and be controlled by MARS stakers


Mars’s builders believe multiple DeFi ecosystems can operate and thrive alongside one another, and the protocol was engineered with a unique “hub and spoke” model, which gives it the capability to be deployed on any appchain in the Cosmos – specifically those with demand for credit or leverage. Mars’ first outpost is currently established on Osmosis. This proposal aims to explore the community’s appetite for establishing a second outpost on Neutron.

Neutron is a new Cosmos chain purpose-built for cross-chain smart contracts. It is the first interchain-security consumer chain to be secured by the ~$2.5b staked ATOM on the Cosmos Hub, and its architecture is optimized for permissionless interchain queries and accounts.

Neutron’s highly secure nature, neutral positioning and feature set designed for cross-chain smart contracts makes it an attractive home for cross-chain dApps such as Mars’s.

Deploying a Red Bank outpost would establish a vital credit primitive on Neutron. Already, Neutron has already demonstrated significant economic interest. The protocol’s recent liquidity auction attracted deposits of nearly $7.5 million in ATOM and USDC. This liquidity will be paired with NTRN and locked within Astroport’s AMM smart contracts on Neutron. That means Neutron’s first liquidity pools will hold at nearly $15 million when NTRN commences trading (currently expected next week).

Additionally, liquid staking derivatives (LSD) protocol Lido Finance, which is currently the single-largest dapp in crypto by TVL (with more than $13 billion locked on Ethereum), proposed a framework to deploy a cross-chain implementation of Lido on Neutron and plans to offer liquid staking in the Cosmos ecosystem. The proposed design would enable users to instantly stake with Lido on any onboarded zone without the need to bridge and by using a single, unified interface.

With Lido LSDs and existing LSDs from Stride, which can be IBC’d across appchains, Mars contributors believe Neutron could become a critical hub for LSD activity in the Cosmos. With a Red Bank outpost on Neutron and the appropriate governance approvals, LSD holders could potentially use the Red Bank to deposit and borrow against their LSD tokens.

While outside of the scope of this proposal (and pending market demand and a successful track record of operation of the Mars’ Red Bank on Neutron), future proposals could explore deploying rewards for active Outpost users as well as advanced Mars features (such as Mars Farm vaults and Mars v2’s upcoming cross-collateralized credit accounts) on Neutron.

Ultimately, the establishment of a Red Bank Outpost should benefit the Mars Hub ecosystem as any fees collected by the Outpost would be shared between lenders on Neutron, MARS stakers on Mars Hub, and the Mars Safety Fund. More importantly, the Outpost would put a foundational DeFi building block in place on Neutron, which could attract more devs and users to the Neutron ecosystem.


Neutron has undergone software audits by Oak Security and Informal Systems, but it’s still a new and unproven appchain. Smart contract and protocol risk are present. To help minimize risk, Mars would initially deploy only its borrowing and lending functionality on Neutron. Additionally, all tokens approved for borrowing and lending would adhere to Mars’ Risk Framework, and deposit and borrowing caps should be set conservatively upon launch.


This is a signaling proposal, not an executable proposal. If this proposal passes, Mars contributors will utilize a builders multisig to deploy the necessary smart contracts on Neutron before connecting the Red Bank with Mars Hub.


This proposal is being made by Delphi Labs Ltd., a British Virgin Islands limited company. Delphi Labs engages in incubation, investment, research and development relevant to multiple ecosystems and protocols, including Astroport Protocol and Mars Protocol. Delphi Labs and certain of its service providers and equity holders own MARS tokens and have financial interests related to this proposal. Additionally, Delphi Labs is one of several entities associated with one another under the “Delphi Digital” brand. Delphi Digital’s associated entities and/or equityholders or service providers of such entities may hold MARS and may have financial interests related to this proposal. All such entities, service providers, equity holders and other related persons may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including Neutron/NTRN. More specifically:

  • Delphi Ventures invested in NTRN-token-related contract rights in a venture financing round related to Neutron.
  • Delphi Labs is in discussions to potentially acquire NTRN tokens (independently of this proposal).
  • One of the P2P group companies incubated Neutron Protocol and an affiliate of that entity is also an investor and shareholder in Delphi Labs.

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, asset or instrument.

This proposal is also subject to and qualified by the Mars Disclaimers/Disclosures. Delphi Labs may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Delphi Labs is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Delphi Labs 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.


A very welcome development!

The key question is, of course, which tokens would be available as collateral?

If I may ask, would the coming stATOM pool on Neutron be sufficient to qualify stATOM as a collateral token on Mars Neutron?

The pool in question will be an stATOM/ATOM stableswap pool on Astroport Neutron, amplification factor of 3, with 450,000 ATOM worth of liquidity provided by Cosmos Hub.


Hey John, this is Jonathan from Delphi Labs. The following is my personal opinion:

The main blocker I see is the price feed source. We’ve done some research on TWAPs and have found that stableswap-based TWAPs are less robust and harder to reason about than their XYK counterparts. As such, I think a proposal where the price feed is solely based on a stableswap-based TWAP might not be as robust as needed for Mars.

I think a good alternative would be coupling the stableswap-based TWAP price with the redemption rate. This solution would imply having an onchain contract deployed by Stride (or another robust mechanism) where Mars’s contracts could query the stATOM redemption rate.

As stated, all of the above is my personal opinion. Obviously anyone can submit a proposal to the forum and ultimately governance can decide either way but just wanted to leave my 2c in the meantime.

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I agree with Jonathans reply and would add:

Another concern for stableswap pools is how the scaling factor/concentration ratio is set, if this is just controlled by an EOA there is a centralisation risk around an account being able to manipulate the price of stATOM/ATOM, ideally the scaling factor would be updated in a decentralised way before it can be accepted as collateral on a credit protocol.