Mars Ecosystem Starting of $XMS full deflation

Published on: 24.04.2022

Mars Ecosystem announced the starting of $XMS full deflation in which they want to bring back the “stable” means

The CAKE/PancakeSwap LP earn XMS pool and farms comes to an end at 1 PM UTC on April 25, 2022. Reduction in the amount of $XMS rewards will lead to a reduction in Mars’s protocol revenue. All Mars Pools & Farms that reward $CAKE, $BNB, $ETH and $USDm which all comes from protocol revenue, will be closed accordingly.

Reasons:

The XMS-typed vaults model in Mars Farm work in a way to attract users to participate in USDm minting. It’s not the core economic model of XMS. This model helped build the community of the Mars Ecosystem in the early stage. However, at this stage it is no longer valuable in this regard.
This decision will directly mitigate the release of XMS and facilitate XMS to deflate. Once these pools are shut down, the distribution of XMS will be severely diminished. Therefore, Mars Ecosystem decided to reduce the release of XMS until deflation.
The value model of XMS will be fully returned through its binding of USDm’s demand. The value of XMS will completely stem from USDm’s demand. Mars Ecosystem will fall on boosting the demand for USDm.

In conclusion, the decision they made is to actualize the deflation of XMS and keep the value model of XMS fully back to stablecoin-oriented means. More importantly, the Mars team will continue to make contributions on stablecoins and empower themselves to pioneer the value of XMS instead of relying on yield mining.

Users can still stake XMS and USDm in the remaining pools of Mars Farm. https://app.marsecosystem.com/pools