MIR-10┃Add MaticX as collateral on Mimo on Polygon

Summary: This proposal aims to add MaticX as new collateral on Mimo on Polygon.

Rationale: Stader Labs is building Stader, a native liquid staking smart contract platform covering multiple networks that enables users to develop staking-related applications on top of Stader infrastructure. Stader’s staking solution for the Polygon network is MaticX. MaticX is an ERC20 receipt token that represents staked MATIC and a portion of the staking rewards. Stader carefully selects validators based on performance, safety, decentralization and the commission terms to ensure users receive the best user experience. On the top 100 validators, the top 6 make up more than 50% of the staked MATIC. As a result, Stader has elected to work with validators who have less than 1% of the total staked MATIC market. MaticX tokens are fully redeemable for underlying MATIC tokens, unstaking period takes 90 epochs (3-4 days) to process. Adding MaticX as collateral on Mimo will help the decentralization of Polygon PoS chain while giving more economic efficiency to Mimo users but also increase the decentralization and the variety of tokens in backing of PAR.

You can learn more about these mechanisms in their documentation / litepaper. Once the vote is accepted on Snapshot, we will determine the associated liquidation ratio, minimal collateral ratio, debt ceiling, liquidation bonus on a second MIR discussion.

Project Presentation: Protocol name : Stader Token requested : MaticX Token contract address : https://polygonscan.com/token/0xfa68fb4628dff1028cfec22b4162fccd0d45efb6 Audit(s) links : Halborn: https://github.com/stader-labs/audits/tree/main/halborn Peckshield: https://github.com/stader-labs/audits/tree/main/peckshield Certik: https://github.com/stader-labs/audits/tree/main/certik Immune Bytes: https://staderlabs.com/docs/Immunebytes/StaderLabs%20maticX%20Smart%20Contract%20Audit%20Report%20by%20Immunebytes.pdf Immunefi bug bounty: https://immunefi.com/bounty/StaderforPolygon/ Chain requested : Polygon Relation with the project : None. Website: https://staderlabs.com/ Github: https://github.com/stader-labs Twitter : https://twitter.com/staderlabs Discord : https://discord.com/invite/xJURAhSmav Telegram: https://t.me/staderlabs

Token metrics & Risk assessment:

Smart Contract risk: C+ MaticX has been audited by ImmuneBytes and Halborn and there is also a $1M bug bounty. MaticX has generated more than 300k transactions.

Counterparty risk: B- MaticX is the core contract that acts as a receipt tokens for staked MATIC. MaticX can be acquired on Polygon and mainnet. Both means of acquiring MaticX utilize the same contract address on Polygon. MaticX is a non-rebasing token, which means that the amount of tokens in the user’s wallet is not going to change. Over time, while rewards accumulate, the value of the MaticX tokens increases relative to MATIC. There are currently 3k holders on Polygon.

Market Risk: B- MaticX is the representation of MATIC staked in a validator, for this reason we consider the risks of MaticX mitigated by MATIC which is the 11th biggest marketcap coin. Since Stader and MaticX are recent, the average volume isn’t that relevant for now. The liquidity available on Polygon is nearly $28M. Furthermore, MaticX is fully redeemable for the MATIC that it contains after an unstaking period of 90 epochs (3-4 days), which means that MaticX has indirectly the liquidity of MATIC.

Chain Risk : A Polygon had 0 outages over the last 6 months. (https://polygonscan.com/blocks)

Liquidity Risk of PAR on Polygon: A- The PAR-USDC UniV3 pool has 592K$ in concentrated liquidity, composed of 50% PAR and 50% USDC at the time of writing. The 2eur Curve pool has 848k$ in liquidity, composed of 41,7% PAR and 58,3% jEUR at the time of writing. The 4eur Curve pool has 382k$ in liquidity, composed of 16,7% PAR, 19,7% jEUR, 37,4% EURS and 26,1% EURT at the time of writing. The MIMO-PAR Balancer pool has 136k$ in liquidity, composed of 80% MIMO and 20% PAR.

This provides the following price impact on the following trade sizes: 1000 USDC → PAR: 0.01% 10000 USDC → PAR: 0.08% 25000 USDC → PAR: 0.21% 50000 USDC → PAR: 0.41%

Overall Risk : B The Overall Risk is the average of the points mentioned above.

Community size : Twitter: 77k followers Discord: 18k members Telegram: 15k members

Means: Human resources: Multisig DAO signers will need to sign and execute transactions to add MaticX as collateral on Mimo. Treasury resources: There is no cost for the treasury to add MaticX on Mimo Polygon. Technical implementation: Add MaticX in the ConfigProvider Contract with all parameters decided by the Mimo governance. Set the chainlink oracle related to the MaticX: MaticX/USD into PriceFeed Contract

Voting options:

• Add MaticX as new collateral on Mimo on Polygon
• Against adding MaticX as new collateral on Mimo on Polygon
• Abstain

Authors: @starny & @JeanBrasse from Mimo Labs