[MIP-7] Deploy a $MENDI market to Yellow Network

Author: Mendi Core Team and Yellow Network

Title: Deploy a $MENDI market to Yellow Network

Type: Mendi Improvement Proposal

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Abstract

Yellow Network solves the problem of genuinely decentralized trading by allowing participants to swap assets across different exchanges without having to rely on block creation. This brings all parties, exchanges, blockchains, and trading firms together, creating a network of brokerages and allowing for a more efficient trading infrastructure.

Yellow Network embodies a decentralized Layer-3 peer-to-peer mesh network allowing brokers to communicate, trade, and aggregate the liquidity of connected nodes.

Mendi Finance has a large amount of unused $MENDI tokens in protocol growth allocation that could be utilized to deepen liquidity behind the token in a new market.

Yellow Network proposed a structure where the USD sides of the trades are covered by Yellow Network and the MENDI side of the trades would be covered by the MENDI DAO to expand MENDI markets to the newly created L3 P2P clearing house built by Yellow.

Proposal Summary

Allocate $50k USD worth of $MENDI tokens as seed liquidity to create a market on Yellow Network’s new Layer-3 P2P which acts as a decentralized clearing house across multiple different markers in web3.

At current price this would be an estimated allocation of 200k $MENDI from Protocol Growth. (5/24/2024)

Motivation

Yellow Network provides a unique opportunity to the $MENDI DAO by providing the opportunity to supply liquidity only in MENDI tokens while Yellow would provide the counter side to the trades to build out the liquidity on the Yellow Market.

Yellow Network has extensive experience within the CeFi and DeFi industry and they are attempting to build a new type of approach that is actually able to serve the demand of current CeFi traders in a decentralized way.

Yellow Network through their wallet would also be running marketing campaigns for further exposure and promotion of $MENDI to the Yellow Community.

Technical considerations

Mendi Core Team and Yellow Network would hold equal keys to a multisig wallet to be used as the backend of the new market before some further developments make it possible to move it through directly to an account abstraction wallet on the Yellow Network. This provides security as no party could withdraw the funds without the other sides signature.

Expected Timeline - OPTIONAL

• Temperature Check during RFC: May 30, 2024 - June 2, 2024 ✅
• Governance Vote: June 03, 2024 - June 6, 2024 (in progress)
• Deployment Target: Beginning of June if everything passes

Deployment Considerations

Using a multisig archtecture the $MENDI market can go live quickly after the MIP passes.

Conflict of Interest

No conflict of interest exists between Mendi team and Yellow Network.

Next Steps

We will began deployment if MIP-7 passes.

References and Links

https://docs.yellow.org/

https://wallet.yellow.com/

https://terminal.yellow.com/network