In July 2020, the mStable Genesis team locked 500k MTA and 212,500 mUSD into a Balancer pool to create an initial liquidity source for the MTA token. The transaction can be seen here. In exchange for the liquidity contribution, the mStableDAO's Aragon entity received 100 Balancer Pool Tokens (BPT). The balance of these tokens can be seen here.
At the time, the distinction between the mStableDAO and Stability Labs was not as clearly defined, however there was a clear demarcation from the sources of funds, with the MTA being contributed on behalf of the mStableDAO, and the mUSD being contributed from Stability Labs' fiat reserves.
Stability Labs now is requesting that 212k mUSD back. Stability Labs understands that whilst these funds were in the Balancer pool, they would be subject to impermanent loss, so will accept the mUSD amount that is returned net of impermanent loss.
The MTA tokens will be returned back to the mStableDAO.
Should the mStableDAO redeem the 100 BPT tokens in the 80/20 mUSD/MTA pool that was seeded in July last year?