PROPOSAL : Add Tesseract Vaults as collateral for minting MIM

Summary :

TESSERACT is a yield aggregation protocol built on Polygon, a sanctioned fork of Yearn Finance, and the first team of YFI Combinator. Abracadabra is soon launching on Polygon. Bootstraps initial liquidity on Polygon by adding Tesseract vaults as collateral to borrow MIM.

Background

Tesseract Finance is a multi-chain yield aggregation protocol, launched on Polygon end of October as part of YFI Combinator. Initial launch of Tesseract was based on leveragedAAVE strategy (USDC, DAI, BTC, ETH, and MATIC). Currently at 4.7M TVL and steadily rising, averaging around 12% APY on stables and 3-5% on non-stables. As Tesseract is part of the Yearn Finance incubation program, therefore, it’s relying on accumulated knowledge and experience of the yearn ecosystem and it’s following all the processes closely and reusing the same infrastructure. As a result, the vaults have been battle-tested on Ethereum and carefully ported to Polygon. It’s helpful to know that the fees are shared with Yearn Treasury and the vaults are under the control of a multi-sig wallet with Tesseract, Polygon, Yearn and notable Defi ecosystem members).

Proposal :

The purpose of this proposal is to allow users to borrow MIM using tVaults as collateral. The collateral ratio could be set between 60 and 80% considering the nature of vaults (the exact numbers to be defined later). With Abracadabra launching on Polygon this could attract liquidity for both projects and we believe would be an ideal introduction to grow the TVL on Polygon but explore future opportunities to provide stable and safe yields as new strategies are implemented.

Benefits

For Abracadabra (Spell Holders): additional revenue from Cauldron fees and a loyal friend on Polygon

For Tesseract: provide additional utility to tVault users and allow them to participate in Abracadabra’s long term vision for MIM.

For everyone: Support MIM’s growth as a strong alternative to other stable coins and its long-term vision of becoming the default decentralized censorship-resistant stable coin.

References

Website : https://tesr.finance/

Blog - Tesseract Fi – Medium

Twitter : https://twitter.com/tesseract_fi

Documentation: https://tesseract-finance.gitbook.io

Github: GitHub - MVPWorkshop/tesseract-vaults

6 Likes

This would be great as the tesseract vault tokens are the same as the yvTOKENS like yvcrvSTETH, yvcrvSTETH etc on ethereum.

2 Likes

This makes sense. It’s porting the huge value generated by Abracadabra and Yearn in Ethereum to Polygon. I think it’s not only a benefit for Abracadabra and Tesseract, but also for the users that are going to be able to access high yield opportunities, especially with leverage.

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Are the products audited?

We had an internal audit and then they were checked by yearn core members. Effectively these same strategies have been in use in Yearn on Ethereum for a long time (well long in crypto time) without any issues.

As an ETH-poor noob in the DeFi space, a collaboration between Abracadabra and Tesseract is a tremendous opportunity for users like me. Combining high-yield Yearn strategies adapted for Polygon and the ability to borrow MIM is HUGE.

1 Like