Hey Magpie Fam!
As you may know, Magpie has started Smart Converter a few weeks ago and it worked great as it should be and kept the peg on healthy level up until now! Smart Converter built the trust on community! We can’t discuss it’s benefits…
But as many of you realized, Magpie’s veWOM amount remained the same from the activation day of Smart Converter because the peg is below 95% ( trigger level ) and every convert action triggers swap function on Wombat from WOM to mWOM .
Due to the recent price activity of WOM tokens people are tend to exit from converted versions of WOM token to WOM and sell these WOM tokens. ( which is understandable on bear market )
This is where my proposal starts, I suggest Magpie team to reduce Smart Converter trigger level from 95% to 90%.
As many of you may understand, 95% is so hard target to achieve for a new environment. ( I am sure we will se higher level in the future) On that manner, keeping 95% trigger level harm Magpie community in several ways listed below :
1- Magpie’s veWOM treasury do not increase due to high trigger level.
2-Magpie’s veWOM share lowers day by day in contrast of the competitors.
3-Due to lowering veWOM treasury; Magpie offers lower APR for stable coin pools which leads drop in APR.
4- Magpie’s protocol income lowers day by day due to decreasing veWOM share which cause a decrease in MGP token’s rewards.
5-Competitors use these point as marketing strategy because their veWOM treasury increases day by day.
There are many other reason might be listed here but these are the first reasons that have come to my mind.
By decreasing Smart Converter trigger rate from 95% to 90% :
1- mWOM peg will continue to remain in healthy level because if it’s drop under 90% then smart converter will start to do it’s job.
2-If peg passes the 90% then every conversion action will increase the veWOM treasury of Magpie.
3-Increase in veWOM will cause higher APR for Stable coin pools
4- Higher Apr will attract more people and increase the TVL of Magpie which increases the revenue of Magpie.
5- Revenue of Magpie increases the incentives of vlMGP hodlers which cause price appreciation of MGP token or decreasing the sell pressure.
I mentioned all aspects of the reducing trigger peg from 95% to 90. I hope I can reach Magpie community and get support for my idea for a better future of our beloved Magpie!
Love you all guys! Let’s make Magpie great together!