Feeder Pools (fPools) provide efficient mAsset on/off ramps, generate additional swap volume, leverage mAsset’s Save utilisation rate, and enable mStable to add any number of pegged asset to the protocol.
fPools introduce a new invariant for 2-asset stablecoin AMMs that shows similar properties as Stableswap, but can be solved with a lower number of operations, i.e. they are more efficient.
fPools are composed of 50% fAsset (e.g. BUSD, GUSD) and 50% mAsset (e.g. mUSD).
Feeder Pools (fPools) provide important benefits to mAssets by:
mAsset swaps (effectively allowing users to ‘mint’ mAssets with any fAsset)
mAsset SAVE rate by providing a source of demand for mAssets from within mStable (thus increasing mAsset SAVE APY)
Feed swap fees back into the
mAsset by supporting trades between fAsset <-> mAsset bAssets
fPools maintain the bulk of functionality from mAssets:
Same interface for Mint/Swap/Redeem
Ability to deploy fAsset/mAsset onto third party lending platforms to generate yield
Ability for Meta Governors to enable a governance fee, which extracts a % of total pool revenue
Governed by vMTA holders
However, there are a number of core differences between fPools and mAsset pools:
fPools produce LP tokens that increase in value, rather than inflate in supply, creating a new universe of composable yield tokens generated by mStable
Swaps into mAssets do not apply a fee, making fPools the most efficient place to trade mAssets
fPools are always composed of 50/50 fAsset/mAsset, and use an invariant derived optimised for trading 2 assets
fPools will soon be permissionless, i.e. anyone will be able to create them.
fPools are separate contracts from the mAsset pool and so do not impact the risk profile of mAssets. This means that any pegged asset can be added without impacting the integrity of mAssets.
There are 5 feeder pools currently live:
By contributing liquidity to an fPool, the liquidity provider will receive:
Swap fees into the bAsset specific to that fPool
MTA rewards that vest over time (if deposited into the Vault)
Feeder pools on mStable have low impermanent loss risk.
Rewards are given in MTA
1/3 of MTA rewards are claimable immediately
2/3 of MTA rewards are streamed linearly after 26 weeks
Rewards from providing liquidity can be boosted by staking MTA
Liquidity providers can achieve a maximum boost of up to 3X depending on their amount deposited and staked MTA (vMTA), i.e. voting power
MTA rewards go to users who provide liquidity to Feeder Pools
When providing liquidity, liquidity providers receive LP tokens that represent their share in the liquidity pool
The Vault is used to meaure who is providing liquidity and distribute MTA through a smart contract
To qualify for MTA rewards, the LP tokens must be staked in the Vault
If you have previously deposited into the old Earn Pools, you can find them here
These pools include
MTA/WETH Uniswap Pool
mUSD/3Pool Curve Pool
MTA/mUSD 95/5 Balancer Pool
MTA/mUSD 80/20 Balancer Pool
USDC/mUSD 50/50 Balancer Pool
MTA/mUSD 5/95 Balancer Pool
WETH/mUSD 50/50 Balancer Pool