MIP-24 l Unlock vMIMO on Fantom

Summary: The proposal aims to unlock locked MIMO, known as vMIMO, on the Fantom chain.

Context On July 6th 2023, the multichain bridge, whose tokens bridged from Ethereum were used by the entire DeFi ecosystem deployed on the Fantom chain, was exploited for $126M (at the time of the exploit). This led to a massive depeg of stolen tokens on Fantom, causing Parallel's DAO to reduce all PAR debt ceilings (wETH, wBTC, USDC) on Fantom to 0 (proposal here). The MIMO tokens are not part of the stolen assets (see here) and are still backed up, however it is impossible to redeem them as the multichain bridge has been paused since the exploit.

Since the exploit, none of the stolen assets have been recovered and returned to their holders. However, according to the Fantom Foundation, it is still possible to recover the assets (more info here).

Since the reduction of debt ceilings to 0, the Parallel protocol on Fantom can be seen as ‘paused’ until collateral assets are recovered. In line with this, and with the aim of not restricting vMIMO holders on Fantom, we propose to unlock vMIMO for all users.

Rationale: Unlocking vMIMO holders on Fantom would allow MIMO holders to freely use them. MIMO tokens on Fantom are still backed (see here) but not redeemable for the underlying asset on Ethereum as multichain bridge is frozen.

Unlocking vMIMO on Fantom would also remove the possibility for MIMO holders on Fantom to get any opportunity to vote on proposals, due to the fact that unlocking vMIMO makes it impossible to lock new MIMO tokens as vMIMOs.

Means:

• Human Resources: Multisig signers will need to sign transactions to execute the proposal
• Treasury Resources: No treasury resources used

Technical implementation: Fantom: In the VotingEscrow contract, call the function ‘expireContract’

Voting Options:

• Accept to unlock vMIMO on Fantom
• Against/Rework the proposal
• Abstain

Authors: Jean Brasse from Mimo Labs