MGP-7┃Create a Mimo pool on Midas Capital on Polygon

Summary: We propose to create a Mimo pool on Midas Capital on Polygon.

Rationale: Midas Capital is a cross-chain money market solution that unlocks and maximizes the usage of all digital assets and makes them work for you. The Midas Capital Protocol empowers anyone to create isolated interest rate markets that enable borrowing and lending of any token based asset which supports the ERC-20 specification. Midas Capital is currently deployed on Polygon, Binance Smart Chain and Moonbeam.

Website: https://www.midascapital.xyz/ Documentation: https://docs.midascapital.xyz/ Audits: https://medium.com/midas-capital/audit-with-zellic-29b63f1be25a Twitter: https://twitter.com/MidasCapitalxyz Discord: https://discord.com/invite/cddSv7ATcq Medium: https://medium.com/midas-capital

This proposal aims to create our own Midas pool on Polygon controlled by the Mimo governance to allow the DAO and users to borrow against the MIMO and PAR tokens and liquidity pools. On Midas, the design of the pool allows borrowing against MIMO token and liquidity pools but not allowed to be borrowed, this feature is called ‘protected collateral’.

Creating a pool on Midas gives also the possibility to set the pool in the interest of Mimo and the users, thus, the Mimo DAO will be able to choose which tokens could be lended, in collateral, protected collateral, but also curve interest rates and the LTV of each token in collateral.

Tokens included in the Mimo x Midas Pool will be :

• PAR
• PAR/jEUR Curve V1 Pool
• PAR/USDC UniV3 LP
• USDC
• DAI
• FRAX
• WMATIC

Mimo x Midas pool set up:

As protected collateral:

• PAR → 75% LTV
• PAR/jEUR Curve V1 Pool → 70% LTV
• PAR/USDC UniV3 LP → 70% LTV

As collateral:

• PAR → 75% LTV
• USDC → 80% LTV
• DAI → 80% LTV
• FRAX → 75% LTV
• WMATIC → 70% LTV

Midas is allowing customization of the curve interest rates. With the Midas team we worked on a custom curve interest rates available below:

The curve interest rates will be the same for all assets as collateral on the pool. A curve interest needed for tokens/LPs as protected collateral. We also encourage you to create and propose your own curve interest rates, you can use this model to do this: MIMO - Jump Rate Model [PUBLIC].xlsx - Google Sheets

In order to allow a token/LP as collateral on Midas, an oracle is needed. Below is proposed oracle for each token/LP:

• PAR → EUR/USDC chainlink price feed
• PAR/jEUR Curve V1 Pool → Curve MPF oracle 1
• PAR/USDC UniV3 LP → PAR/USDC UniV3 TWAP 1
• USDC → USDC/USD chainlink price feed
• DAI → DAI/USD chainlink price feed
• FRAX → FRAX/USD chainlink price feed
• WMATIC → MATIC/USDC chainlink price feed

Midas allows deposit tokens as collateral on the borrowing pool while earning rewards from liquidity mining programs. PAR/USDC UniV3 LP currently receive rewards in MIMO tokens and PAR/jEUR Curve V1 Pool receive rewards in JRT-MIMO-SEP-22. It means that users will earn rewards while using tokens as collateral and borrow against.

It seems that Midas is better aligned with our desire to be cross-chain but is also more responsive than MarketXYZ and will deploy on the various chains we are or potentially will be going to and that’s why we propose to replace Rari and Market pools for Midas pools.

Note that the LPs containing MIMO can not be deployed at first because we need an oracle for it but the Midas team put us in touch with an oracle provider, DIA 1 which will help us to have a MIMO price-feed that will also be cross-chain by aggregating our different pools through the different chains and CEX.

Once the price feed is deployed by the DIA oracle, we can add these pools after a second discussion and vote by the governance:

• MIMO
• MIMO/PAR 80/20 BPT
• MIMO/WETH Curve V2 Pool

Means:

• Human resources: Verify that the Mimo x Midas Capital Pool has been correctly created and that the ownership of the pool has been successfully transferred to the Mimo DAO multisig.
• Treasury resources: There is no cost for the treasury to create the pool on Polygon.

Technical Implementation: The Midas team will deploy the pool with voted parameters by the Mimo DAO then transfer the ownership of the pool to the Mimo DAO multisig. The Midas Capital pool will be on the Midas Capital frontend.

Voting Options:

• Accept to create our own pool on Midas Capital Protocol on Polygon
• Refuse to create our own pool on Midas Capital Protocol on Polygon
• Abstain

Authors: Jean Brasse & Starny from Mimo Labs