AIP #17: Creating the MIM-USDT Overpeg Defense Mechanism (ODM) on Arbitrum

So the reason why we decide to start of with USDT, its that USDT has been unparalleled for years both in terms of Market Cap and Daily Volumes. It has been able to strongly defend the peg, and less prone to blacklist smart contracts. Additionally, we have a direct line of contact with their team in case somethings would arise.

You can easily check on the largest coin analytics websites how exactly better has USDT performed in the last year compared to USDC, in all the major statistics.

Lasty, consider the stance of the SEC in the last few weeks, I would focus more prominently on USDT.

This being said, MIM is paired to both stablecoins on curve, and has USDC specific pairings on Velodrome, Camelot and Solidly.

Despite this, the ODM architecture allows easily to switch from one centralised stablecoin to the other, if the need would arise.

Secondly to address your doubts on the LFG, these USDT would be kept inside the LP, hence users would be able to buy them directly without the need os us deploying any funds. Also being a stablecoin, quick deployment wouldnt create a price crash and the LFG did. And lastly, MIM would be backed by these USDTs only in situations of stress for the protocol and an overpeg scenario.

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