AIP #5 - Abra Team Proposal: Get MIM on Aave
Aave is one of the largest borrowing and lending markets DeFi has, with their products tailoring a lot to institutional players it would be fantastic for the further adoption and growth of MIM. Aave collaterals get voted in by governance, in order to make sure that MIM gets voted in, the Abracadabra Team, proposes that we take 2 weeks of protocols earnings (capped at $5mil) to Bribe votes, via Bribe Protocol (https://www.bribe.xyz/).
What is the reason for needing to Bribe?
Aave assets are voted in via governance, bribes will help us assure that activity of voting for MIM is high, and ultimately make it more likely that the vote goes through. IF the vote does not go through the funds are not given to the venal. In addition, it is important to use revenue from the protocol and not new emissions to stay true to our long term plans of reducing SPELL emissions!
What is the Bribe Protocol?
Bribe creates DAO infrastructure tooling to incentivize protocol participation. Depositors stake their governance tokens in the Bribe pool to earn income. Bidders borrow the staked votes to support or reject governance proposals. Bribe V1 introduces Voter Extractable Value (VEV) to coordinate and auction powerful coalitions of DAO votes. Bribe is best used as part of a well-balanced and active delegation strategy.
How will the bribing work?
Protocol Fees are collected in MIM tokens and usually used to buy back SPELL to be deposited into the sSPELL staking contract. In this scenario, MIM fees will not be used to buyback SPELL, but will be directly deposited in the Bribing contract. This way, no SPELL selling pressure will be added, and voters will be bribed using an asset with stable values.
If this proposal passes, the last 2 weeks of protocol fees (capped at 5mil $MIM) will be used as explained above.
If the 2 weeks protocol fees exceed the 5 Millions cap, additional MIMs will be used to buy back SPELL and deposit into sSPELL staking contract normally!
A snapshot vote will soon be put up in order for this proposal to be voted on!