[TMP #7] Community Proposal: Metavault

[TMP #7] Community Proposal: Metavault



Scope:

Request DAO approval to deploy funds into Metavault via MVLP on Polygon.

Current Governance Limitations:

Per WIP #27:

While the proposed investment can be voted by the Treasury Council, the above guidelines cannot be followed as expected due to the current lack of Risk Officer, a TMP is being used to assist treasury personnel with decision making by having the DAO review the proposal, assess the risks and make the final decision.

Objective:

  • Deploy $2mm USDC into MVLP in Metavault on the Polygon chain.
  • Purchase and stake $25k of MVX

Rationale & Metavault Background:

The Wonderland Treasury still has a lot of unallocated stables and given the current market conditions there are limited directional opportunities.

Metavault is a GMX fork on Polygon. Their MVLP token is akin to GMX’s GLP token that has proven very popular. GLP holds significantly more stables than MVLP so we will be able to mint MVLP at an attractive rate by supplying stables to balance the pool of tokens.

For WIP #19 the DAO voted in favor of investing 12.5mm in GMX/GLP. Given that the risks are similar and the size of the investment considerably less, the treasury team agrees this proposal is safe and will provide good returns while waiting for market conditions to improve.

Expected returns are ~25-35% annually. Around 30% of this is paid in Matic (Polygon’s token) and 70% in esMVX (akin to esGMX on GMX).

MVLP consists of 35% stables (target weight on stables is 45%), with the rest being directional tokens, primarily BTC, ETH and Matic. This compared to GLP at 49% stables means we will have a bit more upside (and downside) potential as the market evolves.

MVX has a MC of just over $8mm. This means a lot of potential for growth. Polygon has over $1bn TVL, slightly more than Arbitrum where GMX is primarily housed.

GMX has first mover advantage but there is a large amount of capital on Polygon to serve.

The Treasury team suggests buying $25k worth of spot tokens to stake due to the high growth potential in this project. Our deposit into the ecosystem will boost their AUM by 25% and growth should follow as it is correlated with available liquidity.

Staked MVX tokens currently receive an additional 36% APR with 6.7% coming in Matic rewards with the remainder in esMVX.

The Treasury Operators will monitor the positions to maximize profitability and manage risk.

Metavault site: Metavault.Trade

Snapshot:

https://wl-l.ink/Snapshot/TMP-7

Voting options:

  • Approve Deployment
  • Deny Deployment

Risks:

Smart Contract Risk:

Smart contract risk will always be present. This is a fork of GMX which has been through audits. MVX has had their own audit. Link to the audit and docs below.

Docs:

Price Risk:

This is a relatively low risk position. If the market continues to move down we will experience some losses, though not nearly as much as if we were holding spot ETH and BTC. Generated yields will help reduce this.

Metavault may experience attacks similar to GMX, though substantially less likely. This is done through highly leveraged positions along with market manipulation attempts. Metavault has only $10mm AUM with WL adding (assets under management) so an attack of this type is improbable.

[TMP #7] - Community Proposal: Metavault has been denied.
https://wl-l.ink/Snapshot/TMP-7