As of the analytics page, there are currently 196 million $MIM issued, where 12.5 are of bad debt, this constitutes 6.5%. Not so immediately worrying but in a further downturn from user activity issued $MIM could go so low that it starts becoming a problem.
Making a partial downpayment of the debt with treasury $MIM can make the bear market more confortable, while still keeping treasury assets for future operations. It would also be seen as a powerful move, giving credit to a team that is commited with the safety of the protocol.
I like the hybrid model of option 3 that over time directs protocol revenue to repay the remaining debt.
I’m liking option 3, some of this and that. Not as drastic as 1 or 2. Unless we’re paying high interest on the debt then it needs to go ASAP. Smooth and steady wins the longer term race.
Format
-Borrow 25k of Usdc/usdt weekly from aave curve position, swap to mim, pay off 25k debt weekly
-From current MIM supply, pay off 1M debt each month for the next 4 months
-Move Treasury cut to 50%; 50% of this directed towards buying CRV and depositing into aave for time being, 50% to debt
estimated reoccurring debt payment at current revenue ( 37-45k weekly)
use YCRV bribes to store spell in treasury (additional 12k weekly of collateral) (49-57k)
-estimated pay off of debt given no changes (2.2yrs) years)
Good idea Shibaattacknow!! This is a decent way to lay out option 3. Keeping the treasury full and CRV held will benefit abracadabra.money and the future of DeFi.
Apologies for the delay! We are finally ready to share with you the treasury revenue for the last 3 months i.e August, September, October.
August: 166,275.40$
Sep: 137,813.29$
October: 133,252.13$ (note that this October value is missing the last 10 days of interest, which should be claimed and collected tomorrow due to a bug in the sSPELL/mSPELL distribution).
As expected most of the revenue comes from Stargate USDT and Stargate USDC strategies. An interesting point is the 62m SPELL that the treasury has received through the month of October. These SPELL tokens come from the bribes that our CRVs are getting for voting towards the MIM-3pool, and it is considered as well as protocol revenue!
All of the data can be verified on-chain as tokens received by our treasury address: 0xDF2C270f610Dc35d8fFDA5B453E74db5471E126B.
Now that these amounts are public, we want to move this RFC to AIP, as AIP #10: Bad Debt Repayment Plan. Voting will start Sunday 30/10 at 3:00 PM CET, and will end 72 hours later on Wednesday 3:00 PM CET!
