[OCEP-01] -OATH Chapter Establishment Proposal - Aurelius

Chapter Chain: Mantle Proposal Type: OATH Chapter Establishment Proposal Proposal Author: Justin Bebis Date: 11/3/2023

Executive Summary:

Aurelius is a DeFi lending platform that seeks to leverage the Ethos Reserve V2 codebase to mint a stablecoin and utilize underlying collateral to bootstrap an integrated Granary Finance lending market on the Mantle Network. By reducing the cost of capital and improving outcomes for ecosystem stakeholders, Aurelius envisions becoming a cornerstone of the Mantle DeFi ecosystem, aiming to be its premier native Collateralized Debt Protocol (CDP).

Note: This Governance Proposal is only seeking approval to deploy the core protocol. A follow on tokenomics proposal will seek approval for tokenomics and revenue specifics.

Proposal Specifics:

Aurelius is designed to harness existing OATH infrastructure and technology to bring cutting-edge DeFi solutions to the Mantle network. To this end, Aurelius proposes that the OATH Foundation grants our team license to use the Ethos Reserve V2 codebase as an official OATH Chapter.

Through Aurelius, the OATH Ecosystem will gain significant exposure to the Mantle network without the burden of incentives being placed on the $OATH token. Additionally, through the bargaining power provided by Aurelius’ upcoming token, our team has been able to secure a grant from Mantle alongside key partnerships that would have otherwise not been possible.

Potential revenue streams include minting fees, borrowing fees, and revenues from the upcoming option tokens. Aurelius has also secured a 200,000 $MNT ecosystem grant from the Mantle Network and, combined with the support from the OATH Foundation, will be a competitive force against other similar dApps.

Another contribution Aurelius commits to is a liquidity pool which features token-ERN (stablepool) and sttoken-stERN (yield-bearing-correlated pool) available on Mantle. These pools would be mutually beneficial, and the OATH ecosystem is invited to help bootstrap and promote these opportunities to help introduce the Aurelius product as they see fit.

Chapter Revenue Breakdown: Until the token for the protocol is live, Chapter Revenue will be utilized to bootstrap the protocol until a follow on Governance Proposals directs otherwise.

Team Members / Experience:

Elaborate on the experience of the proposal team and why they will be successful implementing the proposal.

OATH Foundation developers have extensive experience deploying and maintaining the OATH technical suite of infrastructure. Since Aurelius leverages OATH tech, the crossover makes deploying and maintaining Aurelius intuitive and rehearsed.

Key Objectives & Success Metrics:

• Objective: Establish Aurelius as a leading lending platform on the Mantle Network.

  • Metric: Top 2 lending platform on Mantle by TVL on DeFiLlama

• Objective: Foster a robust ecosystem where users can earn real yield and other incentives.

  • Metric: Top 5 native Mantle project by market capitalization.

• Objective: Establish a strong and engaged Mantle-native community.

  • Metric: Grow impressions on Aurelius twitter to top 5 among Mantle-native projects

Risk Assessment:

Network Adoption Risk:

Because Mantle is a brand new network, the success of Aurelius is, in part, beholden to the success of Mantle. Though we can do our best to create a vibrant, thriving ecosystem and onboard new users, we rely on the Mantle team to keep pushing their technology stack forward and finding PMF.

Experimental Risk:

Aurelius, though utilizing the OATH technology stack, is approaching both CDP and lending primitives in a unique fashion. Because it’s unnecessary to incentivize assets supply-side at the lending level, there will not be any supply APR to alleviate borrow-side interest rates. How this mechanical change will affect usership is to be determined.

Because of these mechanics, Aurelius will rely heavily on real demand for DeFi loans. To source this demand, the Aurelius lending market will place a strong emphasis on mETH and USDY usership, and focus on assets like ETH and stablecoins in the CDP itself to supply demand for leverage.

Additional Details:

Aurelius is not just a lending platform; it represents a vision for the future of DeFi. With its unique approach to borrowing and staking, combined with the support of the Mantle Network and the OATH Foundation, Aurelius is poised to redefine the DeFi borrowing landscape. The community’s support and feedback will be invaluable in shaping its trajectory.