✅ With the passing of MIP-015, the MetronomeDAO has greenlit the introduction of esMET, a refined vote-escrow tokenomics model for $MET. This enables users to lock their tokens in return for various benefits. Learn more and unleash the power of esMET 👇 buff.ly/3ZC1Vye

Aero is coming. Metronome is on board. At launch, Metronome plans to migrate protocol-owned liquidity to Aero, the unified liquidity layer for Ethereum 🛫

Metronome has fully closed the underbacking disclosed on July 30 and built a surplus of 281,774 msUSD and 262 msETH on top of it. With backing restored, msUSD and msETH are expected to return to 1 USDC and 1 ETH. Read more: paragraph.com/@metronomedao/…

Update regarding the Metronome Synth underbacking disclosed on July 30: The dune dashboard, which is linked at the bottom, tracks underbacking in real time. Since the last update, underbacking has changed as follows: * 4,788 ==> 1,550 msETH (3,238 msETH improvement) * 3.07m ==> 7.75m msUSD (4.68m msUSD increase) In dollar amounts, the underbacking has improved considerably over the last two weeks. Additionally, the msETH "skew" has now been properly mitigated. As such, swap fees have been increased across the board, inhibiting open market swap activity. The treasury may still manage any skew via its msAsset inventory contract, as it has for the past several weeks. The market for synth assets has fluctuated tremendously over the past two weeks, and continues to be volatile. As of now, OTC buybacks remain paused. As users have pointed out, the "Metronome Synth Inventory" multisig wallet, found at 0x24932A15c8871eE8f0bbF7f50C82984151C0C941, was not properly tracking in the Dune dashboard. That has now been fixed. Users additionally pointed out that external funds deposited into MetBasis and AMO contracts (vamsETH and vamsUSD) were erroneously excluded from the circulating supply. This has additionally been fixed. Roughly 280 msETH and 200k msUSD deposited into AMO contracts, plus an estimated ~400 msETH and 1 million msUSD deposited into MetBasis, now correctly display as in circulation. This means that the net underbacking actually improved by almost 700 msETH and over 1 million msUSD more than the delta from the last update, as those circulating assets count against the total backing. dune.com/dom_xyz1549/metrono…

Update on the Metronome Synth underbacking disclosed on July 30. The dune dashboard, which is linked at the bottom, tracks underbacking in real time. Since the last update, underbacking has changed as follows: - 5,773 ⇒ 4,788 msETH (985 msETH improvement - 3.52m ⇒ 3.07m msUSD (450k msUSD improvement) Priced in units, the underbacking has improved considerably. The treasury continues to facilitate open market and OTC buybacks at a brisk pace. However, ETH price has increased considerably over the past two weeks. ETH is now trading above $2,500, an increase of about $650 per ETH. Priced in dollars, this has considerable impact on the outstanding underbacking. Due to these market conditions, the treasury is pausing its OTC and buyback target of 0.7. The impact of ETH price increase is being assessed, as well as how the treasury optimizes its resources. Given the material change, another update will be shared by next Thursday, and a bi-weekly update the following Thursday will proceed as usual. dune.com/dom_xyz1549/metrono…

Update regarding synthetic asset underbacking: The Dune dashboard has tracked trends in underbacking alongside treasury activities and external market movements. dune.com/dom_xyz1549/metrono… Per Dune, underbacking has changed since the original announcement as follows: - 6,367 ⇒ 5,773 msETH underbacking (594 msETH improvement) - 4.57m ⇒ 3.52m msUSD underbacking (1.05m msUSD improvement) Over the past two weeks, operations have prioritized lowering the skew. Skew actually increased immediately following the announcement. The msUSD peg reacted more violently than msETH, and significant arbitrage paid 1.5-3% fees to the treasury to buy cheap msUSD and swap-and-sell expensive msETH. This contributed to healthy revenue at the expense of the skew, with msETH underbacking climbing as high as 7,500 msETH. Treasury operations, including buybacks, LP incentivization (treasury is incentivizing msUSD LP on Aerodrome only - msETH is solely incentivized by swap fees), and swapping inventory from msUSD to msETH on exchanges, then burning msETH to mint msUSD again, has contributed to a positive trend in the skew. Additionally, internal swap fees have been modified as follows: - Burn msETH ⇒ mint msUSD: 0.15% fee - Burn msUSD ⇒ mint msETH: 10% fee Once the skew has been reduced to a satisfactory level, all swap fees will be set arbitrarily high, such that no further swapping takes place outside of treasury operations. These operations will continue with the intention to limit the skew further. The team will continue to provide updates every two weeks, unless there is a significant development beforehand.

Metronome is sharing an update on the msETH/msUSD underbacking, caused by unbacked float from the synthetic swap module. The situation has been addressed, and action is not required from LPs. Full post-mortem here: paragraph.com/@metronomedao/…

Metronome liquidity incentive spend was $145k this week, down from $161k last week. Even with lower spend, several msAsset LPs continued to attract attention for their yields. Curve frxUSD/msUSD showed 23.84% APY, while Aerodrome msUSD/USDC C showed 18.22% and msETH/WETH C showed 15.29%. Some of these LPs peaked at close to 50% APY, which was noticed by several community members on Discord. VoteMarket remained the second-largest incentive source at $58.5k, with the largest allocations going to frxUSD/msUSD and msETH/WETH on Curve.

New msETH/WETH market live on @Tangent_fi! More info below 👇

Metronome liquidity incentive spend was $161k this week, a bit lower than the $175k from last week. Aerodrome led with $93.5k, mostly directed to msUSD/USDC C and msETH/WETH C. VoteMarket followed with $58.5k, with the largest Curve allocations going to frxUSD/msUSD and msETH/WETH. Aerodrome’s concentrated liquidity pools are showing slightly higher APYs this week, with 21.68% on msETH/WETH C and 19.39% on msUSD/USDC C. Curve msETH/WETH also remains competitive at 17.98% APY.