QIP 005: Adding amTokens as collateral for minting miMatic

Summary

This proposal is for the addition of amTokens to be accepted as collateral for miMatic stablecoins.

amTokens are received when users lend out tokens on Aave Polygon. These tokens serve as proof of ownership for the tokens lent out and earn a continuous return.

The Protocol would offer an option for users to automatically compound their amToken rewards (Matic) so that the value of their collateral increases as users earn rewards. This would remove the need to manually claim rewards.

Motivation

• Allow users to earn interest on the collateral in their vaults, increasing the protocol’s capital efficiency

• Tap into the around $21 billion market on Aave, that could be simultaneously used in the QiDao Protocol

Based on responses to this QIP, Lao Zi will adjust the minimum collateral to debt ratio to reflect the community’s feedback.