Proposal 21: Launch a v3 Pool operated by MCDEX DAO

Status

Approved

Motivation

MCDEX v3 mainnet launch is around the corner. Although v3 is fully permissionless, MCDEX DAO should launch a pool as a benchmark and bootstrap the ecosystem in the early stage.

Pool details

Collateral Token

USDC

Perpetual Contracts

  • BTC-USDC
  • ETH-USDC

Acting Operator

I propose to appoint MCDEX Foundation as the acting operator for 3 months.
In the early days after launch, it is important to adjust the risk parameters in time according to the market situation. The MCDEX DAO governance process is too long to respond to markets. As a result, I suggest that MCDEX DAO grant MCDEX Foundation with privileges described below:

  • Set all the initial parameters of the pool;
  • Choose Oracle’s suppliers;
  • Change the risk parameters of the pools whenever necessary. Please note the operator can change risk parameters without the pool’s LP governance;
  • Propose to change the pool’s original settings through LP governance if needed. For example, the acting operator can propose to change the initial margin rate of the perpetual. Such a proposal shall be approved by the pool’s LP governance before execution;

However, the acting operator MUST NOT add any new perpetual contract to the pool without MCDEX DAO governance.

MCDEX DAO shall grant the privileges through a smart contract and shall be able to revoke the privileges at any time.

Seed Insurance Fund

I suggest MCDEX DAO add 250K USDC to the insurance fund of the pool.

Add Liquidity

I suggest MCDEX DAO add 6M USDC to the pool to bootstrap the liquidity. The LP token of the liquidity shall be transferred to the MCDEX DAO vault.

I suggest the community discuss the proposal and we will start to vote on May 16

EDIT: Please vote on MCDEX Governance Voting App

2 Likes

I approve of this proposal and

Towards the best perpetual contract DEX in the world!

1 Like

What are the selection criteria for oracle? What is the oracle choosing process? In general, I think the suggestion is good, and I support it.

Does oracle’s choosing need voting by community?

I suggest open bidding to decide the Oracle supplier. And MCDEX Foundation decides the winner of the bidding.

1 Like

The proposal suggest to allow MCDEX Foundation to choose the Oracle suppliers.

Great,I support the proposal.

I support the proposal as well.

For the MCDEX DAO pool, who will be in charge of setting the initial parameters? The MCDEX foundation? And if so, what will they be?

Yes, the acting operator (MCDEX Foundation) set the initial parameters according to the blockchain network performance.
The suggested settings is down blew: (it is not the final decision)
BTC-USDC and ETH-USDC:

  • Initial Margin Rate: 4%
  • Maintenance Margin Rate: 3%
  • Liquidation Penalty Rate: 1%.
  • Trading Fee: 0.07%, included:
    • LP Fee Rate: 0.055%.
    • Vault Fee Rate: 0.015%.
    • Operator Fee Rate: 0.
    • Referral Rebate Rate: 20%.
  • Initial Insurance Fund: $250,000.
  • Insurance Fund Rate: 50%.
  • Insurance Fund Cap: $10M.
  • Max Open Interest Rate: 100%.
  • Keeper Gas Reward: $30.

After three-month test, I suggest MCDEX Foundation set the initial operator fee rate to 0.01%. The operator fee is used to cover the Oracle cost:

  • Professional data source provider fee
  • Gas fee
  • Fee for the decentralized oracle service

If there is a surplus after deducting the above fees, the surplus of the operator fee shall be transferred to the DAO vault as part of the value capture.