SAIP #49: Conclude Bentobox to Degenbox Migration.
Last week, the DAO successfully executed a planned migration that allowed to move all of the Abracadabra cauldrons collateral backing MIM from the Bentobox infrastructure to Degenbox.
The following proposals aim at closing this double counted position, similar to what has happened in the past with migrated cauldrons.
Introduction
The planned migration which happened last week marks a very important step in our DAOs history. For the first time since launch, all of our infrastructure now resides on Abracadabra’s proprietary infrastructure, and doesn’t have to rely on external teams.
You can read more about Degenbox here.
Prior to this, some of our largest cauldrons were still residing on Bentobox, a vault layer owned by the Sushiswap DAO. This situation was not allowing the DAO to capture the full extent of its potential, and was also representing a dangerous security risk, considering the fact that Bentobox is no longer maintained by the Sushiswap team.
Thankfully, after months of negotiations, the Sushiswap team agreed on the rescuing of these assets. The process has been executed, recreating all the cauldrons and positions directly on Degenbox based infrastructure.
The Proposal
The following proposal aims at mimicking what has happened in the past with migrated cauldrons, the next step is to allow the DAO multisig to mint new MIM to close off all of the positions currently residing on Bentobox.
This task is needed mostly for accounting purposes, as all of the collateral backing those positions is now inside the Degenbox cauldrons, the front end is updated, and the users holding these positions will interact solely with those cauldrons to manage, reduce their debt and deleverage.
This brings a situation where User A, who had a position in the yvWETH market on Bentobox, now has a position with the same collateral and debt, but in another cauldron, making his position in Bentobox basically double counted for and redundant.
If this proposal was to pass, the execution would be extremely simple, where the DAO multisig would mint the necessary amount of MIM, close all of the positions on Bentobox and then reduce the MIM in those cauldrons to avoid the potential security issues explained above.
The total amount of MIM is not a fixed number as interest keeps growing there, but this proposal aims at empowering the DAO with up to 24m MIM to be used to close the debt off. All unused MIM at the time of migration will be burned, or not minted. At the end of the process, all of those MIM will be back in the DAO multisig wallet.
This process will not increase the circulating supply of MIM, nor will it impact users in any way.
The speedlane nature of this proposal is chosen to avoid services like defilama or our own analytics platform to experience disservices while this step is not executed.
Voting
Given the Speedlaned nature of this proposal, the snapshot vote is already posted here.
Voting will start Wednesday 02/04/24 and last 48 hours.