Collaboration between MIM & Impermax to promote the MIM Token

šŸ’”Idea Discussions
1

Hi, my name is Frank and I am BizDev at Impermax.

After speaking with BradDy and Romy about my proposal, we have agreed this should be taken to the attention of the DAO for an official move forward.

We have a very interesting, value added proposal to give the MIM tokens additional traction and exposure into the arbitrum ecosystem.

First, what is Impermax? We are a lending/borrowing protocol for LPā€™s. For lenders, it means a chance to lend their tokens at no risk, and getting a return on their tokens. For borrowers, it means the chance to increase their exposure while using lenders tokens to convert them into additional LPā€™s to gain more fees/rewards in providing LPā€™s. Itā€™s without saying Impermax is having a 2 years history without hack, bad debt and is audited twice.

With the current history of the existing sushiswap pools, I believe MIM borrowers could aim at 80-250% APR and MIM lenders could aim at 6-18% APR with well deployed and promoted pairs on our platform. I strongly believe it to be a very valuable proposition for lenders to generate yield at no risk. The reason I am here is to request MIM DAO to place 20k of MIM on the lend side (no risk) and we would do the same with ETH, in order to initiate the momentum.

Consequently, one LP could come and use that money to increase his exposure and aim at yielding triple digits APR.

Besides a little co-marketing upon launch, there is literally no cost for both sides.

Finally, as suggested by Romy, after the successful deployment of the pair, we could also aim at deploying the sAMM (stable pairs) of the MIM ecosystem. We believe users are more than pleased to generate 6-15%+ on stables during these difficult macros conditions, especially in a decentralized and permissionless proven protocol.

Recap :

  1. DAO places 20k of MIM at no risk on the lend side of Sushi/Arbitrum already deployed pool on Impermax;
  2. Impermax does the same and places 20k of ETH on the lend sidel;
  3. We both co-market it over our respective twitter/discord with coordination to maximize exposure; 3.1) Lenders enjoy high APR at no risk while borrowers do what they were already doing but with highers returns
  4. Both BizDev teams speak again in 1-3 weeks, post launch, to analyze the success and launch the stable pairs accordingly.
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Please specifically identify how you plan to obtain yields. Please clarify ā€œno riskā€ ; as their is no such concept in this space

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Hi Shibaatacknow

I should have said ā€˜ā€™low riskā€™ā€™. You are right.

Yield is obtained by lenders as their tokens placed in the contract are converted into LPā€™s by borrowers and for such exposure, borrowers do pay lenders a lending fees (rates) - and they get higher APR with more LPā€™s tokens for farming.

The risk is very low in the sense that Impermax has been running for 2 years without a history of bad debts or inconsistencies. Lenders are shielding their investment by the code safeness & liquidity of Uniswap V2 and underlying forks. It is very unlikely a liquidation could occur not quickly enough to covers lenders position, since Impermax pools TVL is significantly lower than the UniV2 pools it is operating on.

It is not impossible a bad event would occur, but after 2 audits and this track record, Iā€™m comfortable saying itā€™s a very low-risk strategy for lenders.

If you have any additional questions, feel free :slight_smile:

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Impermax is the code Tarot was forked from. People borrow to leverage up their LP yield (coming from SUSHI emissions here) and pay yield to the suppliers. Their code also has isolated risk like ours does so itā€™s a reduced risk.

My concern is that the APY might be too low to attract LPs. Itā€™s like 3% yield unleveraged so up to like 15% leveraged. But if it can help expand MIM utility on Arb1 it would be worth it.

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Hey. FYI, we just launched MIM/USDC pair on SwapFish and MIM yield (lend) is 9%, while USDC (lend) is 5.91%

Finally, farming 5x leverage yield at the present rate 228.59% (with all the FISH rewards) - vs the regular 20.89%.

https://arbitrum.impermax.finance/

:slight_smile:

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