MGP-17┃Update Treasury Strategy - MIMO/wETH Protocol Owned Liquidity Transition

Governance Proposal (PGP) Approved PGPs
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Summary:

This proposal aims to modify the Parallel treasury strategy by transitioning the current protocol owned liquidity to a 80/20 MIMO/wETH Balancer pool on Polygon PoS.

Rationale:

Following the approval of MGP-16, which restructured the MIMO token liquidity on Ethereum and Polygon PoS, we propose to switch the current and future protocol owned liquidity from MIMO/p-cs-kp-usd 80/20 to MIMO/wETH 80/20. This strategic shift is driven by the need to enhance liquidity for MIMO tokens while optimizing treasury holdings.

Proposed treasury strategy update:

  • Ethereum: (no changes)

    • Every 4 months, claim ETH rewards from sePSP2 staking
    • Every 4 months, swap ETH for AURA tokens
    • Every 4 months, claim auraBAL from vlAURA locking
    • Every 4 months, swap claimed auraBAL for AURA
    • Every 4 months, claim APW from sdAPW staking → Deposit and stake them for sdAPW
    • Every month, bridge accumulated PAR to Polygon
    • Every month, bridge accumulated paUSD to Polygon
    • Every 4 months, lock AURA tokens and relock current vlAURA

  • Polygon PoS: (changes)

    • Every month, swap accumulated & bridged paUSD and PAR to get a 50/50 split in $ equivalent in wETH and PAR.
    • Every month, Deposit and stake acquired PAR in the p-cs-kp-eur on Aura
    • Every month, deposit and stake ETH with MIMO from the treasury in the MIMO/wETH 80/20 on Aura
    • Every 4 months, claim BAL and AURA tokens from the p-cs-kp-eur
    • Every 4 months, claim BAL and AURA tokens from the MIMO/wETH 80/20
    • Every 4 months, swap claimed BAL for AURA
    • Every 4 months, bridge claimed AURA to Ethereum

Means:

  • Human Resources: DAO Multisig will need to coordinate and execute transactions to facilitate the asset transition and liquidity provisioning.

  • Treasury Resources: Existing MIMO/p-cs-kp-usd POL will be reallocated to MIMO/wETH POL.

Technical implementation:

  • Current MIMO liquidity POL:

    • Withdraw liquidity from MIMO/p-cs-kp-usd
    • Swap paUSD for wETH
    • Deposit & Stake MIMO & wETH in the MIMO/wETH 80/20 pool on Aura

  • Future MIMO liquidity POL:

    • Described in the proposal.

Voting options:

  • For Treasury Strategy Update
  • Against Treasury Strategy Update
  • Abstain

Authors: @starny & @JeanBrasse from Mimo Labs

Community poll:

  • For Treasury Strategy Update
  • Against Treasury Strategy Update
  • Abstain
0 voters
1 Like
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Thanks Starny, Jean, team and multisigs

1 Like
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https://snapshot.org/#/mimo.eth/proposal/0x6d9baff9588d2a0d99e61510ca2e92e6b4c93b17bd878bafe76a6ba8960291ab

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:white_check_mark: With over 4.9M votes from $vMIMO holders, MGP-17 was approved!