RFC - Add $gOHM Cauldron
Introduction: gOHM as collateral
Everyone remembers the rebase phenomenon, hyper inflationary mint cascade of revenue. What resulted of that delirium is two protocols that are in exceptional position to thrive in DEFI. Wonderland and Olympus.
gOHM has proven itself to be one of those most stable forms of collateral in DEFI.
Composition:
gOHM is composed by different assets, here is a screenshot that should explain exactly what is it backed by.
Eventually, this market is going to turn and I see gOHM being a position that maintains relative wealth in these markets with diversified risk. Market liquidity for gOHM is more than adequate for issuing MIM against.
With that being said I would like to see the community open a discussion utilizing gOHM as collateral for MIM.
Parameters For Cauldron
- Borrow Fee: 1%
- LTV: 75%
- Liquidation Fee: 10%
- Initial Top Up: up to 3M MIM; 250K MIM weekly
Rent Period: MIM is rented for 90 days at a time
Oracle/Liquidity Considerations: Uniswap,sushi,balancer,curve,Frax
Risk Considerations: smart contract, market value of gOHM in relation to treasury assets.
Protocol relationship: future potential to revisit scaling POL
gOHM Market Dynamics
Base Rate: 7.3%
-I propose a base rate of of 7.3%, which matches the underlying asset inflation of OHM.
-MC:Treasury > 1.2
-To further tune the dynamics of this Cauldron, as the market cap of the asset exceeds its underlying treasury value- the rate increases 100BPS weekly when MC:Treasury ratio exceeds 1.2
-MC:Treasury < 0.8
-When the marketcap:treasury ratio is below 0.8, the rate of the cauldron drops 100bps weekly with a floor of 4.3%
Borrow/Rent Period: I’ve added a rent time for the collateral in 90 day periods. Holding MIM beyond 90days against this collateral w/o reminting MIM will result in an immediate surcharge of 1000bps over market rate for the cauldron position. (17.3% +or- MC:Treasury premium or discount market rate)
Issuance: Each week after the delivery of the cauldron by the abracadabra team, 250K MIM will be eligible to be issued to Rent with an expiry at the end of the 7 day period. This coincides with roughly 3million MIM borrowed against gOHM per 90days at Max utilization.
Expected Revenue
- At max utilization this provides roughly 84K in protocol revenue every 90 days or 334k a year.
Technical Details
gOHM contract: 0x0ab87046fBb341D058F17CBC4c1133F25a20a52f
