[CAP] - Whitelist MIM+3Crv for the DAI and USDC Omnipools
tl;dr: Whitelist MIM+3Crv Curve pool to allow CNC holders to vote for exposure to this pool during the Liquidity Allocation Votes [LAV] for the USDC and DAI omnipools.
Introduction to MIM
Magic Internet Money (MIM) is a battle-tested overcollateralized stablecoin, backed by a wide variety of DeFi native assets as collateral, that can be minted on app.abracadabra.money on 6 different networks!
$MIM launched back in April 2021, and has swiftly gained significant market share thanks to the Abracadabra leverage engine, which allows users to leverage token and yield-bearing collateral in DeFi.
$MIM markets are built on “cauldrons” technology that allow users to borrow $MIM providing assets as collateral. Cauldrons also allow for isolated lending markets and adjustable interest rates, which add protocol resiliency in the case of extreme market conditions.
After nearly 2 years, the protocol has persisted through multiple black swan events including the UST collapse, the FTT disaster, and most recently the USDC depegging.
In all of these occasions, the $MIM soft peg mechanism performed as expected, bringing the token back to its peg in a matter of hours, and shielding LPers!
You can read more about the MIM soft peg mechanism here.
MIM Backing
As mentioned in the paragraph above, $MIM is an overcollateralized stablecoin backed by a wide variety of assets. At the moment of writing this proposal, the backing currently looks as follows on a circulating supply of ~90M $MIM:
- 23.39% Tricrypto LP Tokens
- 17.65% MagicGLP
- 17.01% CRV
- 13.06% yvWETH
- 28.8% Other Collateral and interest bearing tokens, such as BTC, DAI and WETH.
$MIM does not have a PSM, and positions can be liquidated swiftly if collateral prices were to drop!
MIM backing can be checked in real time here.
MIM Incentives and LP Emissions
Due to the inherent design of $MIM and its leverage engine, USDT, USDC and DAI liquidity pools have historically been deeply important to the protocol’s operations and have been incentivised by the Abracadabra DAO. The DAO constantly looks for new and innovative ways of optimising the liquidity depth of its MIM-3Crv pool and has worked with multiple bribe optimization platforms, including Convex, Yearn, and more.
In the past, Abracadabra DAO has been a prominent figure in using incentives, especially through bribing systems, to attract liquidity and meet the overall demand of its leverage engine. Constantly seeking ways to optimise its strategy for incentivizing liquidity, the DAO has peaked bribing more than $5m worth of incentives per week towards the MIM-3crv pool during November/December 2021.
At the current moment, liquidity for the MIM pool is incentivised with nearly $70k of SPELL emissions per week, and if the Conic Finance model proves to be efficient, some of these rewards will be spent directly bribing vlnCNC holders in the [LAV] votes, after bribing is enabled.
Current emissions can be checked here.
As $MIM grows and the protocol experiments with new AMM / emission designs, the expectation is that Conic Omnipools will bring in fresh liquidity into the MIM-3Crv pool, and play an important role in $MIMs future.
Furthermore, given its resilient and decentralised backing, $MIM whitelisting would provide a wider asset diversification to the DAI and USDC omnipools, while at the same time, providing competitive rewards.
Whitelisting the MIM-3Crv pool
At the moment of writing this proposal, MIM is trading at 0.9985 USDT and the pool is paying APYs north of 12.69% on Convex finance, with an overall TVL of nearly $70m.
Historically, the MIM-3Crv has alway been one of the largest and highest paying stablecoin pools on Curve Finance, used by both Institutional and Retail investors to stable-farm CRV and CVX rewards!
This proposal is therefore to introduce MIM-3Crv voting options during the [LAV], in order to allow Omnipools stakers to gain exposure to the Abracadabra Ecosystem and its rewards!
Voting
After consultation with the Conic Finance team, this proposal is to whitelist MIM+3Crv via a CAP for both the USDC and DAI Omnipools
However, an omnipool specific snapshot vote will be required for each of these assets.
If these votes were to pass, MIM-3Crv would be whitelisted for LAV.
Reference
Proposal Author: https://twitter.com/LickMyRomy, DAO contributor, BD and Growth, Abracadabra Money
Website: Leverage - User's Documentation
Docs: Introduction - User's Documentation
Analytics: Abracadabra Statistic
Github: Abracadabra · GitHub
Official Twitter: https://twitter.com/MIM_Spell
