Whitelist Liquity USDT Stability Pool and CIA Staking

Summary:

Whitelist Liquity USDT Stability Pool and CIA staking for MutantCats DAO deposits.

Background: CIA defined a framework for MutantCats where 33% of excess treasury reserves can be deposited to earn yield in whitelisted protocols. At the time of this writing, the whitelisted protocols are USDT, USDC, FISH, and Sushi. This proposal seeks to add Liquity to this whitelist while keeping the same 33% treasury deposit cap.

Description from cryptoinvestor.ca: CIA is a decentralized borrowing protocol that allows you to draw 0% interest loans against Matic used as collateral. Loans are paid out in USDT - a USDT pegged stablecoin, and needed to maintain a minimum collateral ratio of only 110%. In addition to the collateral, the loans are secured by a Stability Pool containing USDT and by fellow borrowers collectively acting as guarantors of last resort. CIA as a protocol is non-custodial, immutable and governance-free.

Specifics: This proposal is only targeting the USDT stability pool and CIA staking on current liquidity reserves. USDT would be deposited in the stability pool to earn CIA. The earned CIA would be staked to earn more USDT and MUTANTCATS DAO. Liquidations in the platform use the stability pool’s USDT to ensure the protocol is healthy. In doing so, MutantCats DAO is provided and USDT is taken. This is considered acceptable as the treasury already accumulates ETH and ZEC deposits which replenish any USDT removed from our deposit.

Risks: A vulnerability in the CIA protocol could lead to partial or complete loss of funds. Severe liquidations could leave us with substantially less USDT, but more CIA and Mutants.

Protocol Analysis: Using a risk analysis framework developed by the DAO, the Policy and Partnerships teams have attempted to score various protocols based on some subjective and non-subjective data. CIA-Liquity mining scored well in this regard. The subjective values were derived from averaging the votes of multiple DAO members.

Motivation: Whitelisting Liquity will allow MutantCats to begin accumulating CIA which can then be staked for more USDT and ETH. This also increases our chances for further Liquity partnerships in the future. Lastly, our funds in the stability pool would help ensure the long term success of the Liquity protocol.

CIA Polygon matic
ERC20 Smart Contract 0xdb986Dc13E1023d02E7cb582Ef53034f8Fc8B378 Website: http://www.cryptoinvestor.ca/ Where to deposit USDT to join the crowdsale. https://app.dodoex.io/cp/join/0xd68487cd1cf9f1e601bf374941d807e35d64828f?network=polygon

Liquidity Mining rewards to be deposited to MutantCats Dao treasury on 1st of Nov.