MGP-17┃Update Treasury Strategy - MIMO/wETH Protocol Owned Liquidity Transition

Summary: This proposal aims to modify the Parallel treasury strategy by transitioning the current protocol owned liquidity to a 80/20 MIMO/wETH Balancer pool on Polygon PoS.

Rationale: Following the approval of MGP-16, which restructured the MIMO token liquidity on Ethereum and Polygon PoS, we propose to switch the current and future protocol owned liquidity from MIMO/p-cs-kp-usd 80/20 to MIMO/wETH 80/20. This strategic shift is driven by the need to enhance liquidity for MIMO tokens while optimizing treasury holdings.

Proposed treasury strategy update:

Ethereum: (no changes)

• Every 4 months, claim ETH rewards from sePSP2 staking
• Every 4 months, swap ETH for AURA tokens
• Every 4 months, claim auraBAL from vlAURA locking
• Every 4 months, swap claimed auraBAL for AURA
• Every 4 months, claim APW from sdAPW staking -> Deposit and stake them for sdAPW
• Every month, bridge accumulated PAR to Polygon
• Every month, bridge accumulated paUSD to Polygon
• Every 4 months, lock AURA tokens and relock current vlAURA

Polygon PoS: (changes)

• Every month, swap accumulated & bridged paUSD and PAR to get a 50/50 split in $ equivalent in wETH and PAR.
• Every month, Deposit and stake acquired PAR in the p-cs-kp-eur on Aura
• Every month, deposit and stake ETH with MIMO from the treasury in the MIMO/wETH 80/20 on Aura
• Every 4 months, claim BAL and AURA tokens from the p-cs-kp-eur
• Every 4 months, claim BAL and AURA tokens from the MIMO/wETH 80/20
• Every 4 months, swap claimed BAL for AURA
• Every 4 months, bridge claimed AURA to Ethereum

Means:

• Human Resources: DAO Multisig will need to coordinate and execute transactions to facilitate the asset transition and liquidity provisioning.
• Treasury Resources: Existing MIMO/p-cs-kp-usd POL will be reallocated to MIMO/wETH POL.

Technical implementation:

• Current MIMO liquidity POL: Withdraw liquidity from MIMO/p-cs-kp-usd Swap paUSD for wETH Deposit & Stake MIMO & wETH in the MIMO/wETH 80/20 pool on Aura

• Future MIMO liquidity POL: Described in the proposal.