MFIP-5: Migration of Liquidity to StellaSwap (Moonbeam)

Summary

This proposal suggests migrating MST liquidity currently deployed on the Base and Taraxa networks into a new MST-DOT liquidity pool on StellaSwap, the leading vote-escrow DEX on the Moonbeam network.

The strategic goal is to align Meridian’s liquidity positioning with Prisoner’s Dilemma-style game theory mechanics: by delaying immediate rewards, liquidity providers (LPs) are expected to earn significantly higher long-term rewards.

---

Motivation

• Current fragmentation: MST liquidity is split across Base and Taraxa, reducing its efficiency and earning potential.
• Moonbeam ecosystem fit: StellaSwap offers vote-escrow tokenomics (veSTELLA), which reward long-term liquidity commitments and align with Meridian’s deflationary MST design.
• Future expansion: Moonbeam also provides a strong foundation for future deployments of Meridian Finance applications, creating synergies for lending, CDPs, perps, and other DeFi modules.

---

Mechanics of the Proposal

1. Liquidity Migration:

   • Migrate the majority of existing MST liquidity from Base and Taraxa.
   • Deploy into a new MST-DOT pool on StellaSwap.

2. Incentives for LPs:

   • MST liquidity providers will earn STELLA emissions through gauge voting.
   • veSTELLA accumulation and governance participation will strengthen MST’s long-term positioning on Moonbeam.

3. Bribing and Recycling:

   • In the first few weeks, a maximum of 25,000 MST may be used as bribes to incentivize veSTELLA voters to direct emissions to the MST-DOT pool.
   • From week 4 onward, bribes will be funded primarily through recycling of rewards (STELLA emissions converted and looped back), reducing the need for fresh MST incentives.

4. Supply Deflation:

   • All MST emissions remain on hold, maintaining continuous deflation.

   • A public MST Deflation Dashboard will be launched, tracking:

     • Total circulating supply.
     • Historical burn rate.
     • Weekly/epochal shrinkage of supply.

---

Alignment with Game Theory (Prisoner’s Dilemma)

• Immediate vs. Delayed Reward: By migrating and committing liquidity on Moonbeam, MST LPs forego short-term fragmented gains in exchange for stronger, long-term STELLA emissions.
• Higher Collective Payoff: As supply shrinks and liquidity consolidates, both MST holders and LPs benefit from deflationary pressure and stronger price stability.

---

Governance Parameters

• Proposal ID: MFIP-5
• Voting Window: 72 hours
• Outcome: If approved, liquidity migration and MST-DOT pool deployment on StellaSwap will begin within 7 days of proposal execution.

---

✅ Vote “YES” to migrate liquidity into StellaSwap’s MST-DOT pool, consolidate strength on Moonbeam, capture STELLA emissions, and reinforce MST’s deflationary design. ❌ Vote “NO” to keep liquidity fragmented across Base and Taraxa.