December 7, 2023
The following message from Mission Control highlights the biggest protocol developments on Mars during the month of November.
Mars’ HLS markets enable much higher leverage for specific, highly-correlated strategies in the Cosmos. They work by utilizing special credit accounts, which only allow users to deposit and borrow prespecified assets. By limiting their functionality to highly-correlated assets (i.e. stablecoins or a liquid staked asset and its underlying native token), it’s possible to offer much higher leverage than you can get in a standard Mars credit account.
Mars’ first two HLS markets target leveraged staking with Stride’s liquid staking tokens, stATOM and stOSMO. With them, users can deposit stATOM or stOSMO and automatically borrow the underlying native tokens (ATOM or OSMO) to leverage their staked holdings up to 10x.
And it’s just the start for HLS. There are other obvious candidates for leveraged staking markets including Stride Staked dYdY (stDYDX), Stride Staked Celestia (stTIA) and Lido Wrapped stETH (wstETH). By narrowing the use case for some credit accounts, too, HLS represents an entirely new category of offerings on Mars. That means the concept could potentially be expanded in other ways.
For example, specific markets could use Osmosis’ new “supercharged liquidity” to build high-leverage strategies on top of concentrated liquidity pools – particularly pools with pegged assets such as stablecoin pairs.
Six new markets arrived on Mars v2 after governance approval last month:
Each listing offers a significant boost in utility for each token. Specifically, they:
In effect, every new Cosmos token can look to Mars as a way to dramatically expand a token's utility! Explore all of the available markets on Mars now: app.marsprotocol.io.
On November 30, Mars contributors extended the governance token unlock 'cliff' date by an additional 2 months.
All builder-allocated MARS, which were locked in smart contracts and scheduled to begin unlocking on Earth Date December 1, 2023, will now begin unlocking on or around February 1, 2024. On that date, one-third of builder tokens will unlock, and the remaining two-thirds will begin unlocking on a linear daily basis over the following 19 months.
Beyond the revised unlocking date, all MARS allocations remain unchanged. The maximum supply of MARS tokens is 1 billion and the final token allocation appears in the image above.
If you've used Mars in the past you may be eligible for Pyth Network’s ongoing airdrop. Simply visit their airdrop portal and connect a wallet that you’ve used on Mars. You may be eligible to claim $PYTH tokens on Solana! Please note that the deadline to claim your airdrop is February 18, 2024 at 14:00 UTC.
Join Mars’ newest comms channel on Telegram for two-way conversations with Mars contributors, traders, lenders, farmers and more. Let us explore new frontiers in the Cosmos together 👇
Mars contributor Bitcoin Sage recently shared his Mars thesis in a longform post on X:
"Within a year,” he writes, “@mars_protocol v2 could be the most popular app and be at least a top 3 app by volume within Cosmos. Within 2 years it could be an industry leading app."
Central to his thesis is the idea that Mars should add perps inside Rover credit accounts. In his words: “It'll result in a capital efficiency very few or even no other on-chain protocol can compete with.” That’s because users could use their perp positions as collateral for additional leverage, hedging and other DeFi activities.
Shortly after his post, Mars contributor Dohko polled his followers on their appetite for perps. 83.6% of respondents said yes. Check out Bitcoin Sage’s full thesis now, then scroll down to Update 011 in this post for more on Mars and perps.
Throughout November, the Mars community shared numerous ways they’re using Mars to improve their capital efficiency. Here’s some you can explore:
For the first time, users can interact with Mars using the world’s most popular Web3 wallet, MetaMask. It’s all thanks to Leap Wallet’s new integration with MetaMask Snaps. Try it out now by visiting app.marsprotocol.io or v1.marsprotocol.io and click connect with MetaMask.
Want to learn more? Listen to this recording of an X Space with Leap.
Osmosis traders now have a direct link to Mars within the DEX’s primary navigation menu. “The dream of making Osmosis a DEX with all the vertically-integrated features of a CEX is becoming a reality,” Cosmos influencer John Galt wrote of the update.
See it yourself at app.osmosis.zone.
Because Mars lives on-chain, anyone can build an interface to help you analyze and track your positions. Pulsar Finance is the latest. On Nov. 2, they announced full support for Mars v2. That means you can track your Mars positions alongside the rest of your DeFi activities in a single place.
Check it out now at https://pulsar.finance.
In dual proposals from Mars and Neutron, contributors propose migrating Mars governance from the Mars Hub blockchain to Neutron. The proposal also explores the idea of integrating perps into Mars’ Rover credit account. Within hours of the forum posts, the Osmosis community put forward a competing proposal to migrate Mars Hub to Osmosis.
This ongoing debate will be covered in-depth in next month’s Mission Report. In the meantime, Mission Control encourages all interested parties to read the views from contributors at all three protocols and weigh in with your opinions now.
As a pioneer on the leading edges of finance, your voice can help us determine the future of Mars.
- Mission Control
Mars is a novel interchain credit protocol primitive that enables non-custodial borrowing and lending for the Cosmos ecosystem and beyond. Its hub and outpost architecture allows Mars to operate on any chain in the Cosmoverse, and enables a new primitive: the Rover. Live now, Rovers give their pilots DeFi superpowers to engage in virtually every governance-approved activity they might encounter on a centralized exchange: spot trading, margin trading, lending and borrowing — all in a single decentralized credit account represented by a transferable NFT. Your Rover awaits at app.marsprotocol.io.
Some or all features of mars v2 may not be legal to use in certain jurisdictions, including in the United States with respect to leveraged transactions. No person is solicited to use Mars v2 or receiving an offer to enter into any transaction, through this post or otherwise. Users are responsible for ensuring their own legal compliance and may be at risk of serious liabilities for violating their local laws or the laws applicable to other users interacting with them on a peer-to-peer basis through Mars v2. Remember, Cosmos, Neutron, Osmosis and Mars are experimental technologies. This post is subject to and limited by the Mars disclaimers, which you should review: https://docs.marsprotocol.io/docs/overview/legal/disclaimers-and-disclosures