It has been a turbulent 48 hours for the crypto space in general, but our protocol has been performing solidly and reliably. Let’s analyse what happened in the past 48 hours and the effect on our protocol!
The first tranche of our bad debt repayment happened last week. Our outstanding bad debt has been reduced from an initial 12.5m MIM to less than 8.5m. As part of AIP #10, we have also increased the percentage of treasury protocol fees from 25% to 50%. This marks the first step towards the complete repayment of the bad debt created by the Terra-Luna Ecosystem collapse. Going forward, we are gonna disclose a plan on how exactly the remaining 8m will be repaid, over a multi-month period!
In the last few days there has been a lot of noise around the collateral that backs the MIM stablecoin. We have heard our community’s concerns and have worked together with the involved party to reduce the amount of FTT backing MIM. The MIM loan held by Alameda has now been reduced to 0 MIM, without incurring any bad debt.
This is a huge win for our protocol and we are proud to see that, as MIM is trading at less than 50 bps off peg, the market sees it in the same way!
This is once again a statement on how resilient $MIM design and DeFi is in general!
We will be assembling a risk committee that will be entrusted with deciding how many MIM we are willing to issue and what tokens are accepted as collateral. More information on this is coming soon, but if you are interested in becoming a part of this risk committee, please send a DM to our moderators.
Lastly, as mentioned by our previous article we are nearly ready to apply the negative strategies mentioned in the previous peg stability article. After we finish working through some of the final tech-related issues, we will push the interest increase on the WBTC and WETH cauldrons.
This increase in interest will allow us to increase the $MIM borrowable limits on some of our most successful cauldrons, such as Stargate USDT and Stargate USDC, once again improving benefits to our SPELL holders.
We would like to recommend to all of our users to keep an eye on their position in these days of extreme market volatility! The protocol is in a healthy situation and will weather through this storm, as it has done in any other major crisis!
We have more news to share with you regarding Potion and MIG, but we have decided to postpone them until market conditions settle down! Stay tuned for these new updates in the upcoming days!
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