MIR-5┃Add GHST as collateral on Mimo on Polygon

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

Rationale : Aavegotchi is a DeFi-enabled crypto collectibles game developed Pixelcraft Studios that allows players to stake Non-fungible tokens (NFTs) avatars with interest-generating tokens (aToken from Aave) and interact with the Aavegotchi metaverse. It is a unique combination of DeFi and NFTs.

Aavegotchi is governed by AavegotchiDAO which manages all funds generated through the GHST token distribution. The GHST token has a lot of usecases like buying portals to summon Aavegotchis, buying wearables for your Aavegotchis, buying realm parcels and staking to make $FRENS and buy lottery tickets, etc.

The GHST bonding curve works with an on-demand mint & burn formula developed by Aragon, the method is called DAICO, The inflation of GHST tokens through net purchases on the bonding curve is positively correlated to the GHST price. The bonding curve has been mathematically programmed to increase the price of GHST as the circulating supply of GHST increases.

Aavegotchi's tokenomic and gaming environment have given rise to a large community making it a huge leader in NFTs gaming (1) and we believe that diversifying our collateral by different sectors (such as top tiers NFT gaming) will be beneficial to every party.

You can learn more about Aavegotchi Metaverse in their documentation.

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 : Aavegotchi Token requested : GHST Token contract address : https://polygonscan.com/token/0x385eeac5cb85a38a9a07a70c73e0a3271cfb54a7 Audit(s) links : https://www.certik.com/projects/aavegotchi https://consensys.net/diligence/audits/2019/11/aragonblack-fundraising https://certificate.quantstamp.com/full/aavegotchi-ghst-staking Chain requested : Polygon Relation with the project : None. Website: https://www.aavegotchi.com/ Twitter : https://twitter.com/Aavegotchi Discord : https://discord.com/invite/Aavegotchi Telegram : https://t.me/Aavegotchi

Token metrics & Risk assessment:

Smart Contract risk: B The code has 3 audit from Certik, Consys and Quantstamp. Aavegotchi has $10M total value locked. GHST has generated more than 7M transactions since its launch on Polygon in January 2021.

Counterparty risk: A- Aavegotchi was launched in 2020 and quickly became a leader in NFT gaming thanks to on-chain NFTs, tokenomic, metaverse, etc. There is no mint function in the Token smart contract, so, the team can't mint token and the maximum supply can't be changed. There are currently 107k holders on Polygon.

Market Risk: B- The token is available on top exchanges with nearly $64M market cap with a daily volume of $550k on Polygon although a large share of GHST’s supply is staked. The liquidity available on Polygon is nearly $8M.

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

Liquidity Risk of PAR on Polygon: A- The PAR-USDC UniV3 pool has 632K$ in concentred liquidity, composed of 20% PAR and 80% USDC at the time of writing. The 2eur Curve pool has 910k$ in liquidity, composed of 52,76% PAR and 47,24% jEUR at the time of writing. The 4eur Curve pool has 762k$ in liquidity, composed of 19,28% PAR, 18,09% jEUR, 39,89% EURS and 22,74% EURT at the time of writing. The MIMO-PAR Balancer pool has 172k$ in liquidity, composed of 80% MIMO and 20% PAR.

This provides the following price impact on the following trade sizes:

• 1000 USDC → PAR: 0.06%
• 10000 USDC → PAR: 0.13%
• 25000 USDC → PAR: 0.25%
• 50000 USDC → PAR: 0.44%

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

Community size : Twitter: 97,3k followers Discord: 59k members Telegram : 9,5k members

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

Voting options:

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

Authors: Starny & Jean Brasse from Mimo Labs