MIP - 8

PROPOSAL OUTLINE Seed a modest lending pool for the Hercules Vault receipt token (mozLP) on Myso v2 using MOZ-ETH swap (LP) fees, while continuing to grow the available liquidity (lending) pool over time.

SPECIFICATIONS The Hercules Vault receipt token (mozLP) has recently been integrated within the Myso protocol to enable Hercules Vault depositors to borrow against their respective deposit(s).

The MozaicDAO will seed an liquidity (lending) pool of:

• Approx. ~15,000 USD in equivalent USDC …to be sourced from MOZ-ETH swap (LP) fees as ETH and swapped to USDC.

This equates to (on average) approximately TWO WEEKS of fees generated from trading volume. The MozaicDAO will also continue to add to the lending pool every LP harvest with an additional 20% of the fees accumulated in USDC (swapped from ETH at the time of Harvest).

Lending/borrowing terms will be published prior to/at launch but will be favourable to borrowers to encourage active borrowing and adjusted accordingly over time based on demand.

Launch date/time will be announced upon approval but will most likely occur shortly after approval.

MYSO is a peer-to-peer decentralized lending platform, where anyone can create their own fully customizable lending markets outside of the MozaicDAO.

JUSTIFICATION Borrowing against the Hercules Vault receipt token (mozLP) is a milestone that has long been in the roadmap and the documentation: https://docs.mozaic.finance/protocol/hercules-vault/mozlp-borrowing

Therefore, it is with great excitement that the Core Contributors in tandem with the team at Myso are able to launch this integration together.

Additionally, taking out a loan against Hercules deposits offers an attractive way for the protocol to achieve sticky liquidity - with the goal of establishing and then building upon the available borrowing pool over time.

The MozaicDAO will also earn yield on the USDC supplied/lent.

OVERALL COST The overall cost to the MozaicDAO would be in the form of the aforementioned swap (LP) fees - there is no ADDITIONAL cost.

TIMEFRAME Proposed Discussion - 72 hours (closed) Call Out - 24 hours (closed) Snapshot Voting - 72 hours

STEPS TO IMPLEMENT Upon approval, the Core Contributors will: 1/ Harvest LP Fees & swap ETH to USDC 2/ Announce the launch date and time 3/ Coordinate with Myso to establish the respective lending pool

KEY TERMS/ADDITIONAL INFORMATION ‘MYSO v2 is a peer-to-peer (P2P) lending protocol implemented on the EVM that enables Zero-Liquidation Loans (ZLLs), which are crypto-collateralized loans without liquidations.’

‘Myso’s v2 codebase has undergone 3 independent security audits with top teams from the code security space, including Trail of Bits, Omniscia, and Statemind.’

Source: Myso Documentation https://myso-finance.gitbook.io/myso-v2-docs/additional-info/audits-+-bug-bounty