Summary:
This proposal aims to add stMATIC as new collateral on Mimo on Polygon.
Rationale:
Lido is a DAO governed liquid staking protocol for Proof of Stake blockchains. It allows users to stake their MATIC tokens on the Ethereum mainnet to secure the blockchain and immediately get the representation of their share in the form of stMATIC token without maintaining staking infrastructure. Users will get staking rewards (6.3% APR) and still control and utilize their stMATIC tokens in secondary markets on Ethereum mainnet and Polygon. stMATIC tokens are fully redeemable for underlying MATIC tokens, unstaking period takes 80 epochs (3-4 days) to process.
MATIC tokens will be delegated across validators that are registered and accepted by the DAO inside Lido protocol. Node operators don’t have direct access to the delegated assets. They are just providing infrastructure and getting rewards in return. Assets are controlled by Lido core smart contracts exclusively.
Adding stMATIC as collateral on Mimo will help the decentralization of Polygon PoS chain while giving more economic efficiency to Mimo users but also increase the decentralization and the variety of tokens in backing of PAR.
You can learn more about these mechanisms in their documentation / whitepaper.
Once the vote is accepted on Snapshot, we will determine the associated liquidation ratio, minimal collateral ratio, debt ceiling, liquidation bonus on a second MIR discussion.
Project Presentation:
Protocol name : Lido
Token requested : stMATIC
Token contract address : Staked MATIC (PoS) (stMATIC) Token Tracker | PolygonScan
Audit(s) links :
Bug Bounties with Immunefi | Lido Docs
GitHub - lidofinance/audits
Chain requested : Polygon
Relation with the project : None.
Website: https://lido.fi/
Github: Lido · GitHub
Twitter : https://twitter.com/LidoFinance
Discord : Lido
Telegram: Telegram: Contact @lidofinance
Token metrics & Risk assessment:
- Smart Contract risk: C
Lido has been audited by a ChainSecurity, MixBytes, Sigma Prime, Oxorio and StateMind and stMATIC has been audited by Oxorio and Shard Labs. stMATIC is the core contract which acts as a liquid staking pool. The contract is responsible for deposits, withdrawals, minting and burning liquid tokens. stMATIC has generated more than 1,7M transactions on Polygon.
- Counterparty risk: B
Lido on Polygon is a protocol that runs on the Ethereum blockchain and it is upgradable. The address that controls the ability to implement day-to-day changes and upgrade the protocol is controlled by a Gnosis Safe with a 3 of 5 multisig signer requirement. The signers have established validators and ecosystem partners who can execute privileged operations. Further details can be found here. There are currently 26,3k holders on Polygon.
- Market Risk: C-
stMATIC is an ERC20 token that represents the account’s share of the total supply of MATIC tokens inside Lido system. It is a non-rebase token, which means that the amount of tokens in the user’s wallet is not going to change. During time, the value of this token is changing, since the amount of MATIC tokens inside the protocol is not constant.
Since Lido and stMATIC are recent, the average volume isn’t that relevant for now. The liquidity available on Polygon is nearly $80M. Furthermore, stMATIC is fully redeemable for the MATIC that it contains after an unstaking period of 80 epochs (3-4 days), which means that stMATIC has indirectly the liquidity of MATIC.
- Chain Risk : A
Polygon had 0 outages over the last 6 months. (Polygon Blocks | PolygonScan)
- Liquidity Risk of PAR on Polygon: A-
The PAR-USDC UniV3 pool has 592K$ in concentrated liquidity, composed of 50% PAR and 50% USDC at the time of writing. The 2eur Curve pool has 848k$ in liquidity, composed of 41,7% PAR and 58,3% jEUR at the time of writing. The 4eur Curve pool has 382k$ in liquidity, composed of 16,7% PAR, 19,7% jEUR, 37,4% EURS and 26,1% EURT at the time of writing. The MIMO-PAR Balancer pool has 136k$ in liquidity, composed of 80% MIMO and 20% PAR.
This provides the following price impact on the following trade sizes:
1000 USDC → PAR: 0.01%
10000 USDC → PAR: 0.08%
25000 USDC → PAR: 0.21%
50000 USDC → PAR: 0.41%
- Overall Risk : B-
The Overall Risk is the average of the points mentioned above.
- Community size :
Twitter: 112k followers
Discord: 43k members
Telegram: 13k members
Means:
- Human resources: Multisig DAO signers will need to sign and execute transactions to add stMATIC as collateral on Mimo.
- Treasury resources: There is no cost for the treasury to add stMATIC on Mimo Polygon.
Technical implementation:
- Add stMATIC in the ConfigProvider Contract with all parameters decided by the Mimo governance.
- Set the chainlink oracle related to the stMATIC: stMATIC/USD into PriceFeed Contract
Voting options:
- Add stMATIC as new collateral on Mimo on Polygon
- Against adding stMATIC as new collateral on Mimo on Polygon
- Abstain
Authors: @starny & @JeanBrasse from Mimo Labs
Community poll:
- Add stMATIC as new collateral on Mimo on Polygon
- Against adding stMATIC as new collateral on Mimo on Polygon
- Abstain
0 voters
Vote here:
With over 3.8M votes from vMIMO holders, MIR-8 was approved at 100%.