MIR-14┃Add LINK as collateral on Mimo on Ethereum

Summary: This proposal aims to add LINK as new collateral on Mimo on Ethereum.

Rationale : Chainlink is a network aiming to develop an oracle infrastructure. The objective of the oracles is to bring information from the outside world to the blockchain, by integrating data in a Smart Contract that protocols will read afterward. All types of information can be made available. The ICO of the ChainLink service took place in September 2017.

ChainLink now secures nearly $39,9B of the TVL in the DeFi ecosystem: we count big names like Aave, Compound, etc.

You can learn more about Chainlink in their documentation / whitepaper.

Once the vote is accepted on Snapshot, we will determine the associated liquidation ratio, minimal collateral ratio, debt ceiling and liquidation bonus in a second MIR discussion.

Project Presentation: Protocol name : Chainlink Token requested : LINK Token contract address : https://etherscan.io/token/0x514910771af9ca656af840dff83e8264ecf986ca Audit(s) links : Nick Johnson Audit Report https://github.com/smartcontractkit/audits/blob/master/reports/Nick%20Johnson%20-%20Chainlink%20Audit%20Report.pdf 9 Quantstamp Audit Report https://github.com/smartcontractkit/audits/blob/master/reports/Quantstamp%20-%20Chainlink%20Audit%20Report.pdf 7 SigmaPrime Audit Report https://github.com/smartcontractkit/audits/blob/master/reports/SigmaPrime%20-%20Chainlink%20Smart%20Contract%20Security%20Review.pdf Chain requested : Ethereum Relation with the project : None. Website: https://chain.link/ Twitter : https://twitter.com/chainlink Discord : https://discord.com/invite/aSK4zew Telegram : https://t.me/chainlinkofficial

Token metrics & Risk assessment:

Smart Contract risk: A- The code has 3 audits from Nick Johnson, Quantstamp and SigmaPrime. Chainlink has $39,9B total value secured. LINK has generated more than 11,9M transactions since its launch on Ethereum.

Counterparty risk: A- Chainlink launched on Ethereum in September 2017 on Ethereum and is now the oracle leader of the market. There is no mint function in the Token smart contract, it means that the team cannot mint tokens and the maximum supply can't be changed. There are currently 696k holders on Ethereum.

Market Risk: B The token is available on top exchanges with nearly $6,7B market cap with a daily volume of $4M on Ethereum although a large share of LINK’s supply is staked. The liquidity available on Ethereum is nearly $31,5M.

Chain Risk : A Ethereum had 0 outages over the last 6 months. (https://etherscan.io/chart/blocks)

Liquidity Risk of PAR on Ethereum: A- The PAR-USDC UniV3 pool has 1,68M$ in concentrated liquidity, composed of 50% PAR and 50% USDC. The PAR-USDC Curve pool has 425k$ in liquidity, composed of 52,1% PAR and 47,9% USDC at the time of writing. The MIMO-PAR Balancer pool has 310k$ in liquidity, composed of 80% MIMO and 20% PAR.

This provides the following price impact on the following trade sizes: 1000 USDC → PAR: 0.00% 10000 USDC → PAR: 0.03% 25000 USDC → PAR: 0.07% 50000 USDC → PAR: 0.14%

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

Community size : Twitter: 856,5k followers Discord: 110k members Telegram : 36k members

Means: Human resources: Multisig DAO signers will need to sign and execute transactions to add LINK as collateral on Mimo. Treasury resources: There is no cost for the treasury to add LINK on Mimo Ethereum.

Technical implementation: Add LINK in the ConfigProvider Contract with all parameters decided by the Mimo governance. Set the chainlink oracle related to the LINK: LINK/USD into PriceFeed Contract

Voting options:

• Add LINK as new collateral on Mimo on Ethereum
• Against adding LINK as new collateral on Mimo on Ethereum
• Abstain

Authors: @starny & @JeanBrasse from Mimo Labs