p72 seeding 0vix money market
Proposal summary
Seed 0vix with 500k jEUR. 0vix is a money market on Polygon: https://www.0vix.com
Details
To balance the liquidity between all the money markets and to not flood money markets with jEUR (risk of drying out the selling-side liquidity), I suggest withdrawing and burning 100k jEUR from Aave, withdrawing and burning 200k from Midas, and printing 500k jEUR from the Money Printer and deposit them into 0vix.
jEUR will not be used as collateral on 0vix, only as a borrowable asset.
Audits
More infos
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Risk Framework: https://assets.website-files.com/622a09bc809cd190f58b7b15/62bc2790e0fa1d51aef47a93_Market_Risk_OVIX.pdf
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GitHub: https://github.com/0Vix
Motivation
Depositing jEUR into 0vix money market will offer a new venue to borrow jEUR, and the fact that it will only be a borrowable asset could help reduce the amount of jEUR minted from the pools in case of shorting.
The treasury will earn additional revenue streams by withdrawing unused liquidity from Aave and Midas and exposing it to new users.
The treasury would earn $VIX. The VIX token should be kept to gain voting power to redirect more VIX inflation to our market once the VIX emission is in the hand of the community. The treasury should not sell VIX, and use some of the interests generated to build a VIX position. This would allow more VIX inflation in our market, attracting more liquidity in the pool and/or higher deposit APR. This could lead to arbitrages between the money markets, where jEUR is borrowed on Aave and Midas to be deposited into 0vix, raising the interest rates on the first and, therefore, the treasury's revenue.
Vote
YES, withdraw and burn 100k jEUR and 200k jEUR from Aave and Midas, print and direct deposit 500k jEUR into 0vix.
NO, do not seed 0vix.
Off-Chain Vote
YES
22.19M JRT99.9%
NO
12.34K JRT0.1%
Timeline
Nov 24, 2022Proposal created
Nov 24, 2022Proposal vote started
Nov 27, 2022Proposal vote ended
Apr 21, 2025Proposal updated