TL;DR: Add a new market using MIM/USDT curve LP tokens as collateral on Kava.
Initial Interest: 3%
Borrow Fee: 0.15%
Liquidation Fee: 0.5%
Proposed Oracle: Redstone
Initial top up of 5m $MIMs, with the possibility of scaling up to 10m depending on volumes and liquidity. Further top ups will require 24 hours voting periods.
The following proposal is to deploy our first Kava cauldron. The proposed collateral asset is MIM/USDT Curve LP tokens.
The following pool is comprised of MIM and USDT, 2 native Kava assets, and is currently one of the highest yield Curve assets on Kava, sitting at 13% APY, but looking at an increase in that as soon as end of this week.
MIM is a deeply liquid stablecoin, and native USDT on Kava will mean an influx of liquidity for this given asset.
Deep Tether liquidity on other chains will allow liquidators to easily liquidate positions on Kava, and offload USDT both on chain (directly Kava or ETH mainnet) and off chain (CEXs).
Liquidity conditions and dynamics will be similar to the cauldron already approved by the DAO for MIM3pool assets, the proposal and liquidity assessment can be found here.
Assuming a 5m $MIM yearly top up, and a 3% interest, the following cauldron would produce roughly 150k MIM in profits, over a one year time frame for the protocol and $SPELL holders.
We expect this limit to be raised fast and smoothly as more usage comes to Kava.
Additionally, the cauldron will allow users to perform leveraged farming on stablecoins, which is a highly requested product by both the Abracadabra and Kava communities.
The following cauldron would use amended V4 cauldron contracts and would be deployed on Degenbox on Kava.
Adding variable interest rate, upgradable oracles, and built-in strategy rebalance functions.
The current proposal will remain as an AIP for 72 hours, and will then be moved to snapshot. Snapshot voting starts Sunday 1/10/23.
Given the following proposal is related to adding a new collateral, the snapshot voting period will be set to 48 hours. Snapshot voting can be found here.
Voting has passed.