Overview:
Avalanche was the first chain to begin migration away from bridged stable assets to their native counterparts (mostly enabled by CCTP). Recently Ava labs has increased the fee to redeem bridged stable assets to 10bps, continuing to deprecate the assets fully on the chain.
Similarly, many major protocols in the ecosystem move to pairs with the native stable assets. Because of relatively little demand and utilization of the bridged assets, deprecating Synapse pools that have .e assets, and migrating emissions to the pool with the native assets will drive more volume and more efficiently spend emissions.
Proposal:
This proposal suggests that we move emissions from the current Avalanche stableswap pool, the new pool that only supports native stablecoins on the chain. This move will redirect 17k SYN/month towards a pool with higher utilization and generate more fees for the DAO.
The current pool generates just over $1000 per month in total fees, and spends close to $10k worth of SYN. This pool operates at a loss and does not generate meaningful growth for the protocol as users look to bridge other assets. This pool currently sits at 800k of liquidity and also does not offer great pricing for users. Migrating the emissions to the new pool moves liquidity to where users actually want it, supplements CCTP, and allows Synapse to better asses demand and utilization for these assets on Avalanche
I propose that we move all emissions to the new Avalanche pool, and track the comparative ROI over the next three months. The status quo does not provide enough information to make a concrete decision on the level of emissions for Avalanche stableswap pools.
Looking at the following will be crucial in re-evaluating the level of emissions on the pool after this 3 month pool:
- Swap pool Volume
- Bridge Volume routed through this pool
- ROI
** The current pool does $400-600k in swap volume and $1m bridge volume per week
