Prop 174: Whitelist Incentive Denoms

mrc: 80 title: Whitelist Incentive Denoms authors: Delphi Labs forum-url: https://forum.marsprotocol.io/t/1221

Summary

The objective of this proposal is to allow for incentives to be applied to Red Bank user deposits against any market with the following tokens: MARS, NTRN, and OSMO. This will be done by setting these tokens as whitelisted in the Mars Incentives contract on both Neutron (MARS, NTRN) and Osmosis (MARS, OSMO) chains.

Motivation

Previously only a single token was able to be added as deposit incentives to a Red Bank market - this token was set to MARS. As part of the migration work when moving Red Bank to Neutron the incentives contract was enhanced so instead a whitelisted set of tokens could be added to any Red Bank deposit market in a permissionless manner. This gives the opportunity for users or protocols to use other tokens to incentivise deposits in the Mars Protocol if it is of benefit to them or the network.

To avoid some attack vectors involved in being able to add incentive tokens in a permissionless manner, the tokens need to first be whitelisted by governance, and the total number of tokens able to be whitelisted is capped (defaulting at 10 different tokens).

Risks

This change will enable adding incentives to Red Bank deposit markets in a permissionless manner. These changes while tested and audited have not yet been utilized in a mainnet environment and as such there is a risk introduced in using new smart contract code. While the code changes are minor, new bugs or unforeseen situations as a result of the changes can still occur.

Implementation

This proposal involves executing messages which add token denoms to the whitelist of the Mars Incentives contract on both Neutron and Osmosis outposts.

This is a signaling proposal, not an executable proposal.

The Mars smart contracts on the Osmosis and Neutron chain are currently controlled by the Builder Multisig address. If this proposal passes, the builders will utilize their multisig to make the necessary parameter changes.

Copyright

Copyright and related rights waived via CC0.

Disclaimers/Disclosures

This proposal is being made by Delphi Labs Ltd., a British Virgin Islands limited company. Delphi Labs engages in incubation, investment, research and development relevant to multiple ecosystems and protocols, including the Mars Protocol. Delphi Labs and certain of its service providers and equity holders own MARS tokens and have financial interests related to this proposal. Additionally, Delphi Labs is one of several entities associated with one another under the “Delphi Digital” brand. Delphi Digital’s associated entities and/or equityholders or service providers of such entities may hold MARS and may have financial interests related to this proposal. All such entities, service providers, equity holders and other related persons may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including Osmosis/OSMO and Celestia/TIA. Delphi Ventures, a related company, is an investor in rights to receive TIA. These statements are intended to disclose relevant facts and to help identify potential conflicts of interest, and should not be misconstrued as a complete description of all relevant interests or conflicts of interests; nor should they be construed as a recommendation to purchase or acquire any token or security.

This proposal is also subject to and qualified by the Mars Disclaimers/Disclosures. Delphi Labs may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Delphi Labs is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Delphi Labs shall have no liability in the event of losses or damages ensuing from approval or rejection or other handling of the proposal. Each user and voter should undertake their own research and make their own independent interpretation and analysis of all relevant facts and issues to arrive at their own personal determinations of how to vote on the proposal.