AIP #19.1 - Increase treasury collateralised MIM Position

AIP #19.1 - Increase treasury collateralised MIM Position

tl;dr: Following the large value increase in the protocol treasury, expand the MIM credit line outlined in AIP #19 to close off the cauldron loss accrued in the Exploit happened at the start of February.

The Proposal

The current proposal is to increase the debt position that is owned and backed entirely by the treasury (eth:0xDF2C270f610Dc35d8fFDA5B453E74db5471E126B). The protocol will borrow an additional 6.1M MIM and will use this to repay all exploited positions in the affected Ethereum Cauldrons.

At the time of writing this proposal, the protocol treasury currently owns more than 23.8m worth of assets, spread across the various networks:

The overall debt position would be of 13.2m MIM, representing a safe and adequate overcollateralization factor. Most treasury assets are in stable coins or extremely liquid tokens.

By doing so, the exploited positions would be closed and the treasury would manage a single borrow position collateralised with the assets held in the above safe treasuries at a 0% interest.

While being used as collateral, these assets can also be used in farming opportunities to increase treasury earnings, and contribute to both operational expenses and bad debt repayments.


Voting Will start Wednesday, 27/03/24 at 16:00 CET and last 72 hours.

Snapshot vote can be found here.

The proposal has passed.