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Mushrooms FinanceMushrooms Financeby0x43229759E12eFbe3e2A0fB0510B15e516d0464420x4322…6442

Collateralize part of treasury $MM in Unit Protocol to mint $USDP for yield-farming AND use the profit to add LP for $MM pair

Voting ended almost 5 years agoFailed

Recently Unit Protocol already add $MM as collateral to mint $USDP stablecoin with a small debt cap of $50K. We at core team think it is a good opportunity to make good use of $MM in treasury to make the asset more efficient instead of idling there.

The plan is to collateralize part of $MM from treasury to mint $10000 worth of $USDP to yield-farming in other protocols and use the profits to add $MM-based LP for the benefit of entire Mushrooms ecosystem. The benefit to use this yield-farming profit from treasury as a source of LP addition would be huge like providing smoother trading experience, attract more investors and participants, convince Unit Protocol to increase the debt cap and other lending platform to add $MM, etc.

We suggest to use only half of maximum the debt allowed to make the collateralization safe from liquidation, i.e., $20000 worth of $MM would be collateralized for $10000 USDP debt. Currently we are using $USDP to farming in Popsicle.Finance with a APR around 65%

Other choices would be keep the profit as it is OR convert to stablecoin like $USDC in treasury.

Off-Chain Vote

Use farming profit for LP
0 0%
Keep farming profit as it is
0 0%
Convert farming profit to $USDC
0 0%
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Timeline

May 10, 2021Proposal created
May 10, 2021Proposal vote started
May 12, 2021Proposal vote ended
Oct 26, 2023Proposal updated