[BIP-506] Enable 80MIMO/20WETH Gauges with a 2% cap (Ethereum & Polygon PoS)

BAL Gauges
1

PR with Payload

Summary:

Enable Balancer gauges for 80-MIMO/20-wETH weighted pools with a 2% cap on Ethereum and Polygon PoS.

MIMO is the Governance Token of both Parallel and KUMA Protocol.

wETH is a wrapped version of ETH, the native coin of the Ethereum blockchain

References/Useful links:

Parallel Protocol:

Link to:

KUMA Protocol:

Link to:

Protocol Description:

KUMA

The KUMA Protocol results from the work of two distinct organizations: Mimo Capital AG and the KUMA Protocol.

  • Mimo Capital AG, a Liechtenstein regulated and licensed company, audited by Grant Thornton issues tokens backed by bonds (KUMA NFTs) using NFT technology (underlying bonds are held by Bank Frick & Co. AG) to authorized individuals/companies (KYC/KYB).

  • The KUMA Protocol is a decentralized entity governed by vMIMO token holders that leverages these NFTs and issues KUMA interest-bearing tokens (KIBTs), which are freely transferable erc-20 tokens. These interest-bearing tokens behave similarly to stablecoins whose balance increases automatically.

Currently, 3 KIBTs are deployed on Ethereum, Polygon PoS, Mantle & Linea:

  • FRK, a KUMA Interest-bearing token backed by KUMA NFT, themselves backed by 360 days French T-Bills. (± 3,35% APR)
  • USK, a KUMA Interest-bearing token backed by KUMA NFTs, themselves backed by US 12 months T-Bills. (± 4,5% APR)
  • EGK, a KUMA Interest-bearing token backed by KUMA NFT, themselves backed by 740 days Next.e.GO Mobile SE Corporate Bonds. (± 8,75% APR)

Parallel Protocol

The Parallel Protocol (prev. Mimo Protocol) is a Collateralized Debt Position (CDP) protocol deployed on Ethereum, Polygon and Fantom. Stablecoins (PAR & paUSD) are decentralized (controlled by vMIMO holders), non-custodial, overcollateralized, and fully redeemable synthetic asset pegged to the Euro/USD fiat currency.

Motivation:

The role of the 80-MIMO/20-wETH pools is to become our main hub of liquidity on Ethereum and Polygon PoS. The Parallel DAO voted to incentivize people to vote for the gauge to increase the liquidity and attract more users in order for this pool.

A few notes:

  • Mimo Labs has started building positions in AURA (310k $vlAURA & 152k $AURA) & BAL and the Parallel Protocol treasury currently holds 20k $vlAURA.
  • Mimo Labs is buying AURA regularly which are locked to incentivize the liquidity (more details here)
  • The Parallel DAO will also pay ±$585 voting incentives per week for the 80-MIMO/20-wETH pool on Ethereum and ±$125 for the 80-MIMO/20-wETH pool on Polygon PoS via Paladin Quest vote marketplace (more details here)
  • PAR & jEUR already have a gauge on Polygon: 2eur (PAR)
  • wUSK & paUSD already have a gauge on Ethereum: e-cs-kp-USD
  • wFRK gauge on Polygon is currently on Snapshot: p-cs-kp-EUR
  • Parallel is using Balancer since June 2021 for the MIMO token liquidity, first on Ethereum with a 75MIMO-25PAR weighted pool then a 80MIMO-20PAR weighted pool, which was incentivized with MIMO tokens; and on Polygon PoS since November 2021, first with a 75MIMO-25PAR weighted pool then a 80MIMO-20PAR weighted pool, which was incentivized with MIMO tokens.

Specifications:

  1. Governance:

    • Parallel Protocol: none on-chain governance (vote via snapshot) and decisions are executed through a ⅝ multi-sig (4 team members and 4 dao members elected by vMIMO holders).
      • Polygon PoS: 0x2046c0416A558C40cb112E5ebB0Ca764c3C5c32a
      • Ethereum: 0x25Fc7ffa8f9da3582a36633d04804F0004706F9b
      • Fantom: 0x174162ddecE9d0b7B68fd945e38c3372C4C818ba
    • KUMA Protocol: none on-chain governance (vote via snapshot) and decisions are executed through a 4/7 multi-sig (currently held by 7 team members, but a proposal to elect DAO members will take place later).
      • Ethereum: 0xB5502747AABDCa21E832951b4caaF739dA33f450
      • Polygon PoS: 0x1A1A402746FBe8bcFE0f7992AE27c4eD81A70156
      • Linea: 0x1151d63eB6154843D4b4898cF4C63aF556642997
      • Mantle: 0x37D1C94087643dFE5288F72cD1e4A6fde5b130A9

  2. Oracles:

    • Parallel uses Chainlink and in-house build price feeds for all its collateral assets.
    • Kuma uses in-house build price feeds to get the rebase rate of KIBTs.

  3. Audits

  4. Centralizing vector:

    • the Parallel protocol and is held by a 5/8 multisig with 4 signers from Mimo Labs and 4 signers elected by vMIMO holders.

  5. Market history:

    • MIMO has been live since June 2021. MIMO is an erc-20 token that can be locked to vMIMO for governance voting power.

  6. Value:

    • This pool is intended to be the primary source of liquidity for MIMO on Ethereum and Polygon PoS. In addition, the Mimo DAO sees the value of this gauge in alignment with other protocols in the ecosystem and sees potential and value in doing so with Balancer.

Contracts

Ethereum:

Polygon PoS:

Specification:

The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:
gauge(address): 0x6be156504cda8ee38169be96bcf53aeab4377c1a
gaugeType(string): Ethereum

gauge(address): 0x9e5B7e6b61529571E98C8F16d07794eA99A7a930
gaugeType(string): Polygon

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https://snapshot.org/#/balancer.eth/proposal/0xc3522fd845ed507df6af3ba2b349c26a87a656324eb96b0efe76d119a7f378f1

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