QIP204: Add Beefy cbETH LPs as Collateral for MAI

Curve has recently launched on Base, with around $15M in TVL. The cbETH-WETH LP currently holds slightly over $10M in TVL with 11% - 28% APR. Beefy has created a vault for cbETH-WETH in order to compound the yield earned from CRV. This proposal seeks to add this vault as collateral for MAI.

Previously, QiDao added stETH-ETH LP as collateral for MAI on Optimism via a Beefy vault for Curve. This vault was incredibly successful for QiDao, as the protocol became the largest contributor to the LP.

Two minting options are proposed to be launched in parallel.

Vault Specifications (option 1):

• Collateral asset to be used: Beefy’s strategy for cbETH-ETH Curve LP
• Minimum collateral to debt ratio: 125%
• Interest rate: 3%-10%
• Repayment fee: 0%
• Performance fee: 0%
• Minimum debt: 10 MAI
• Maximum debt: 1M MAI
• Oracle provider: Chainlink
• Risk grading: B+

Vault Specifications (option 2):

• Collateral asset to be used: Beefy’s strategy for cbETH-ETH Curve LP
• Minimum collateral to debt ratio: 125%
• Interest rate: 0%
• Repayment fee: 0.5%
• Performance fee: 20% of yield
• Minimum debt: 10 MAI
• Maximum debt: 1M MAI
• Oracle provider: Chainlink
• Risk grading: B+

Risk methodology: https://docs.google.com/spreadsheets/d/1S-P34U9pDp6KFRJm-RYvAFNH6-HW9wofLhEF3QVJvwM/edit?usp=sharing

Motivation

• Increase TVL and engagement on Base
• Grow revenue

Quorum Standards

The option with the most votes will be adopted.

Options

• Approve
• Further discussions needed
• Abstain