Proposal summary

Use the Printer to seed the cross-chain liquidity of our Multichain.org bridges, allowing jEUR and jBRL to be moved from one chain to another.

Details

The Printer allows the governance to mint jFIATs. We usually use it to seed money markets.

I propose to use the Printer to mint and deposit jEUR and jBRL on one side of the bridge.

Polygon has the largest ecosystem and liquidity for jEUR, so I propose to add liquidity on the Optimism, Arbitrum, BNB Chain, and Gnosis Chain side.

BNB Chain has the largest ecosystem and liquidity for jBRL, so I propose to add liquidity on the Polygon side.

The liquidity should be limited to:

• 100k jEUR on Optimism
• 50k jEUR on Arbitrum
• 50k jEUR on Gnosis Chain
• 50k jEUR on BNB Chain
• 250k jBRL on Polygon

These limits should be increased if the TVL and liquidity of these jFIATs increase on these networks, and of course if the liquidity of the bridge is fully used.

Motivation

There is currently no liquidity on the bridges, preventing users to bridge jFIATs. The long-term goal is to have our own bridge, using Chainlink's CCIP, but in the meantime, seeding liquidity on the existing bridge is the only solution we have.

Risks

Since we will use the Printer, the jFIATs minted will have no collateral. When a jFIAT is bridged, the jFIATs are locked on one side of the bridge and released on the other side; therefore, the released jFIATs which were minted are backed by the jFIATs locked on the first chain.

If the bridge is hacked, un-collateralized jFIATs will be in circulation, like in the Midas hack.

Vote

YES, seed the liquidity using the Printer. NO, do not use the Printer to seed the liquidity.