High level summary:
Add Amp token as collateral on Abracadabra. As a collateral token, Amp is a natural fit for Abracadabra. Additionally, members of our community would be thrilled to be able to mint MIM on Abracadabra and then spend that MIM via Flexa.
Additional Background:
First, thank you for taking the time to consider my proposal. I am part of the Flexa team which co-created the Amp token with Consensys. Amp’s primary use-case at the moment is to serve as collateral for the Flexa Network (a digital payment network that lets anyone spend crypto at over 41K merchant locations across the US). By serving as collateral, Amp enables instant finality no matter the asset being spent and eliminates the risk of fraud or chargebacks for merchants all at a lower fee than legacy payment networks. For those who are visual learners, check out this brief video some of our community members made or this Flexa 101 blog post.
This week, Flexa enabled MIM to be spendable at stores like Nordstrom, Baskin Robbins, Regal Cinemas and more. We will be continuing to expand our merchant network, wallet partners, and give projects the ability to incentivize spending of their assets via token promotions (Spend 100 MIM, get 10% back etc). By enabling people to spend their digital assets like MIM, Flexa helps give these assets additional utility that translates into the real world.
We really appreciate the support that the Abracadabra community and Daniele have shown in response to Flexa enabling users to spend MIM and are hoping to deepen our ties with this proposal to continue to build a bridge between the crypto world and the physical world.
I’m happy to answer any questions and am looking forward to hearing the Abracadabra community’s thoughts!
As a supporter of both the Flexa Network and the Abracadabra ecosystem, this proposal benefits both communities. For the Amp community, there are several things one can do with the borrowed MIM such as adding it to a curve/convex pool for yield or spending it on Flexa’s SPEDN app at your favorite retail stores! For the Abracadabra community, we will attract more valuable assets into the ecosystem and the opportunity to implement Amp strategies (such as staking on Flexa Capacity) to generate yield on the deposited assets. Let’s continue to build on the Abra Flexa relationship!
Thanks for the introduction, we all share your enthusiasm for the ecosystem and it’s refreshing to see the utility of cryptocurrency move beyond the keyboard.
It’s always good to have a balanced discussion, can you concisely summarize any risks involved with the proposal you are making here?
If you would, can you explain what the Flexa team hopes to gain from the proposal? A larger user base is the obvious answer but I’d love to hear the complete value proposition from your side if you’re able to share. In short, why MIM?!
My vote is yes to this proposal. I’m a holder of both AMP and SPELL. Flexa is definitely a trust worthy company and has the capabilities to take MIM to another level with it’s user base. Over 3,000,000 holders of AMP. More exposure to AMP would occur as well so it’s a win win for both parties.
Our interest in adding Amp as collateral on Abracadabra is not really related to gaining a larger user base as there is plenty of Amp collateral staked to Flexa ($1.4B at the moment of writing) for everything to work smoothly and we have a community of over 3M holders (40K on-chain, the remainder on CEXs like Coinbase and Gemini etc).
Primarily, we are interested because it would allow the Amp community to maintain their long exposure to Amp while still participating in DeFi via borrowing MIM against their Amp. They could even spend their MIM on Flexa without selling their Amp which gives the community additional liquidity options. Secondarily, any additional use of Amp as collateral helps improve its quality of collateral by providing diversity in uses. The more uncorrelated uses Amp has, the less volatile it should be.
As far as risks, the only risk I can really think of that should be noted is that if Amp is implemented, the dev team just needs to ensure they account for re-entrancy attacks as with any other ERC-777 token but as this is a known vector with a clear solution, this should not be an issue.
As for why MIM? We believe in the value of decentralized stablecoins, we think the community is strong, and we anticipate MIM becoming more integrated within additional DeFi projects so we’d love to be able to enable our community to use their Amp tokens in various kinds of ways as they see fit.
Hope that helps! Let me know if any other questions come to mind!
Thank you, this is the first many of us are hearing of Amp/Flexa so it’s good to have the additional information.
I think as protocol stakers, we are all confident in the abracadabra product so fees are of a tertiary concern, their growth seems more a matter of time than anything else. Flexa’s user base is an impressive feat and will surely contribute to a healthy protocol in that regard.
The reason I mention this is because for many governance participants here, a primary concern - and the reason we put effort into stoking discussions like this one - is that we want to change the status quo in regards to financial freedom and we put proposals who share these values first. Fee’s are great, but changing the status quo is really what drives us frogs and the abracadabra team.
Decentralised stables seem like the most secure option for people to hold/transfer value in the future, especially with how chaotic things are getting outside of the blockchain. I can’t speak for everyone here, but I would really like to see them gaining the utility that makes centralized suit and tie forms of money the current norm for just about everything. This proposal seems like way to do that.
Using the magic of decentralised money to sustain Flexa’s mission of crypto payment utility while using Flexa to sustain and grow the prevalence of the most secure form of money is a symbiotic relationship I would like to see move forward.