LIP-08: Enabling the MIM market with Collateral Factor set to 0

Background: Following the integration of MIM markets on January 30th, an exploit related to the MIM token was identified. This incident prompted an immediate pause of the Lodestar MIM markets while the Abracadabra team investigated and addressed the issue. Thanks to their efforts, a remediation plan was implemented, involving an investigation with Chainalysis and adjustments to their Treasury to offset losses and repeg the token.

Rationale: Despite this setback, MIM continues to hold significant value within the DeFi ecosystem, favored for its utility in farming and borrowing. However, to ensure the stability and security of our platform, we propose a cautious approach to its reintroduction.

By setting the collateral factor of MIM to 0, users will be able to:

• Supply MIM and earn interest + incentives
• Borrow MIM

Users will not be able to borrow against their supplied MIM

Voting Instructions:

• Vote Yes if you wish to enable MIM on Lodestar with a collateral factor set to 0
• Vote No if you are against it and want the market to be deprecated