Summary:
This proposal aims to add CRV as new collateral on Mimo on Ethereum.
Rationale :
Curve is a decentralized multi-chain exchange designed to be very efficient for stablecoin trading at its v1 pools version. Now, there are Curve v2 pools that allow very efficient trading for non-pegged assets with variable volatility.
Curve v2 pools work with an advanced bonding curve thanks to various adjustable parameters that optimize deep liquidity pools. To concentrate this liquidity near the center of the bonding curve, Curve v2 uses two intermediates between StableSwap from Curve v1 and constant products like Uniswap, Balancer, etc. This center is dynamically shifted in accordance with price changes in contrast to other AMMs.
Here is the documentation about Curve v2, its whitepaper and its well-explained article about advanced bonding curves and their different parameters.
Curve is the second biggest DEX after Uniswap and the fourth biggest protocol by TVL using data from DeFi Llama. Curve is also the creator of the veMODEL, a model that has proven itself over time and has inspired many other protocols. The veCRV token (CRV locked) is a governance token which also allows liquidity providers to boost their rewards on the platform as well as receive a share of trading fees on the Curve platform. Curve has reached over $215B in cumulative volume and a total of $86M of fees earned using data from this Dune Analytics.
You can learn more about the veMODEL in their documentation / whitepaper.
Once the vote is accepted on Snapshot, we will determine the associated liquidation ratio, minimal collateral ratio, debt ceiling and liquidation bonus in a second MIR discussion.
Project Presentation:
Protocol name : Curve
Token requested : CRV
Token contract address : $0.63 | Curve DAO Token (CRV) Token Tracker | Etherscan
Audit(s) CRVs : https://dao.curve.fi/audits
Chain requested : Ethereum
Relation with the project : None.
Website: https://curve.fi/
Twitter : https://twitter.com/CurveFinance
Discord : Curve Finance
Telegram : t.me/curvefi
Token metrics & Risk assessment:
- Smart Contract risk: A-
CRV token was introduced to Curve in August 2020 through liquidity mining and is deployed on Ethereum since May 2021. The code has 3 audits from Trail of Bits, Quantstamp and MixBytes. Curve is the creator of the veMODEL, many protocols were inspired because this model has generated billions of transactions with more than $200B of cumulative volume and $80M of total fees earned. CRV has generated more than 3,7M transactions on Ethereum.
- Counterparty risk: B+
The Curve DAO operates as a fully decentralized organization. There is no mint function in the Token smart contract, so the team can’t mint token and the maximum supply can’t be changed. The ecosystem is funded by fees of the Curve Exchange generated by the $250M+ of daily volume across all chains where Curve is deployed. There are currently 79k holders on Ethereum.
- Market Risk: C+
Curve is one of the leading DeFi projects. The token is available on top exchanges with nearly $2B market cap with a daily volume of 4M$ on Ethereum although a large share of CRV’s supply is locked. The liquidity available on Ethereum is nearly $94,3M.
- Chain Risk : A
Ethereum had 0 outages over the last 6 months. (https://etherscan.com/chart/blocks)
- Liquidity Risk of PAR on Ethereum: A-
The PAR-USDC UniV3 pool has 1,68M$ in concentrated liquidity, composed of 50% PAR and 50% USDC. The PAR-USDC Curve pool has 425k$ in liquidity, composed of 52,1% PAR and 47,9% USDC at the time of writing. The MIMO-PAR Balancer pool has 310k$ in liquidity, composed of 80% MIMO and 20% PAR.
This provides the following price impact on the following trade sizes:
1000 USDC → PAR: 0.00%
10000 USDC → PAR: 0.03%
25000 USDC → PAR: 0.07%
50000 USDC → PAR: 0.14%
- Overall Risk : B+
The Overall Risk is the average of the points mentioned above.
- Community size :
Twitter: 306,8k followers
Discord: 38k members
Telegram: 16,8k members
Means:
- Human resources: Multisig DAO signers will need to sign and execute transactions to add CRV as collateral on Mimo.
- Treasury resources: There is no cost for the treasury to add CRV on Mimo Ethereum.
Technical implementation:
- Add CRV in the ConfigProvider Contract with all parameters decided by the Mimo governance.
- Set the chainlink oracle related to the CRV: CRV/USD into PriceFeed Contract
Voting options:
- Add CRV as new collateral on Mimo on Ethereum
- Against adding CRV as new collateral on Mimo on Ethereum
- Abstain
Authors: @starny & @JeanBrasse from Mimo Labs
Community poll:
- Add CRV as new collateral on Mimo on Ethereum
- Against adding CRV as new collateral on Mimo on Ethereum
- Abstain
0 voters
With over 3.8M votes from $vMIMO holders, MIR-11 was approved at 100%.