Summary:
This proposal aims to launch a Treasury strategy for the Mimo Protocol.
Rationale:
Mimo Labs recently made a donation to the Mimo protocol with no counterparty from the Mimo protocol. The protocol received several tokens:
- MIMO → 20,000,000 MIMO
- AURA → 20,908 AURA
- PAR → 9,254 PAR
- PSP → 132,046.87 PSP
- APW → 21,484 APW
We propose to keep the MIMO tokens received by the protocol as they are to cover the various future expenses of the protocol, such as short-term incentive programs, multisig signers compensation, etc.
Aura Finance:
Mimo Labs, in collaboration with the Jarvis Network team, recently proposed to enable a gauge on a PAR/jEUR stable pool on Polygon to be able to receive BAL tokens from gauges weight. The proposal was approved by the Balancer governance a few weeks ago. Aura Finance is a protocol built on top of the Balancer system to provide maximum incentives to Balancer liquidity providers and BAL stakers (into veBAL tokens) through social aggregation of BAL deposits and Aura’s native token.
In this objective we propose that the AURA tokens, holding a voting power in veBAL tokens if they are locked for a period of 16 weeks, be locked for the maximum period, and then vote during gauges weight for the PAR/jEUR pool, allowing to get rewards in BAL tokens on the pool without having to give MIMO tokens in rewards, thus reducing the inflation of the MIMO token and the selling pressure indirectly generated.
The AURA tokens would be relocked for the maximum period every 16 weeks. In addition, all rewards from vlAURA (locked AURA) tokens would be sold every 16 weeks to purchase new AURA tokens that would also be locked.
Balancer:
In this continuity the PAR tokens held by the treasury would be bridged to Polygon deposited in the PAR/jEUR pool on Balancer Polygon, allowing the Mimo Protocol to help obtain better liquidity for PAR (at its scale) but also to generate yield by receiving BAL tokens. BAL tokens would be claimed and then sold for AURA tokens, which will be locked for vlAURA and perpetually relocked.
Paraswap:
Paraswap is a multichain DEXs aggregator protocol. Having PSP in treasury allows Mimo to have access to a portion of Paraswap revenues (which is currently one of the highest revenue generating protocols) as well as having a voice in the governance of one of the highest swap facilitating protocols in the ecosystem, if they are staked as sePSP. We propose to LP them in the 80/20 Balancer pool and stake them for an indefinite period of time, allowing the DAO to collect ETH tokens as revenue at the end of each epoch. ETH tokens would be claimed every 8 weeks and swapped for sfrxETH every 16 weeks, a liquid staking derivative token which is accumulating staking rewards from staked ETH while being liquid.
Also, Paraswap offers what is called a “gas refund”, this feature allows sePSP holders to be able to refund part of the gas cost (ETH, MATIC, etc.) depending on the voting power. Gaz refund may be useful for features such as supervaults which involve swapping in the leverage process of vault.
APWine / Stake DAO:
APWine is a future yield tokenization protocol, deployed on Ethereum and Polygon. APWine implemented with its APW token a veMODEL with the veAPW token, allowing veAPW to vote to add a new pool on the protocol and vote it, more votes the pool receive, more APW tokens in rewards the pool receive.
StakeDAO is a non-custodial platform built on top of decentralized blockchain protocols, offering a way for people to grow, track, and control assets right from their wallet into one dashboard. They are also creators of Liquid Lockers (LL) which are a way to unlock the power of lockable assets like CRV, APW, etc. The SDT token has an important part in this feature because it allow to maximize the yield and the voting power of assets deposited in the Liquid Lockers such as sdCRV or sdAPW for example.
We propose to deposit APW on Stake DAO for sdAPW and stake them. It would allow the Mimo Protocol to vote on APWine gauges weights, but also to have voting power in the protocol. Moreover, staked sdAPW received APW tokens as rewards, these APW tokens will be claimed every 16 weeks and then restaked to get more sdAPW tokens.
Means:
- Human Resources: Sign and execute transactions to deploy the Ethereum Treasury strategy then harvest the strategy every 16 weeks (every 8 weeks for the Paraswap strategy).
- Treasury Resources: Deploy Treasury tokens on Ethereum into several DeFi protocols.
Technical implementation:
Aura Finance:
- Ethereum: Lock AURA tokens for vlAURA and relock them every 16 weeks
- Ethereum: Every 16 weeks, claim rewards from vlAURA tokens, sold them for AURA tokens and lock them
Balancer:
- Ethereum: Swap PAR tokens for USDC
- Bridge USDC on Polygon by using: https://safe-bridge.polygon.technology/
- Polygon: Swap USDC to Polygon for PAR
- Polygon: Deposit PAR tokens in the PAR/jEUR pool on Balancer
- Polygon: Every 16 weeks, claim BAL tokens from the PAR/jEUR Balancer Polygon
- Bridge BAL to Ethereum by using: https://safe-bridge.polygon.technology/
- Ethereum: Swap BAL for AURA and lock them.
Paraswap:
- Ethereum: Swap 20% of owned PSP for ETH
- Ethereum: Stake PSP & ETH tokens for sePSP2
- Ethereum: Claim ETH tokens every 8 weeks
- Ethereum: Swap claimed ETH for sfrxETH every 16 weeks
APWine / Stake DAO:
- Ethereum: Deposit/Swap APW tokens for sdAPW
- Ethereum: Stake sdAPW
- Ethereum: Every 16 weeks, claim APW tokens rewards, deposit/swap them for sdAPW and stake them
Voting options:
- For the Treasury Strategy
- Against the Treasury Strategy / Rework the Proposal
- Abstain
Authors: @starny & @JeanBrasse from Mimo Labs
Community poll:
- For the launch of Treasury Strategy
- Against the launch of Treasury Strategy / Rework the Proposal
- Abstain
0 voters
MGP-12┃Launch Mimo Treasury Strategy is live on Snapshot !
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With over 4.5M votes from $vMIMO holders, MGP-12 has been approved !