Bribe shared this Monday, January 17, through his Twitter account, a proposal to add $MIM as an asset in Aave.
“Bribe Protocol has submitted an Aave Enhancement Proposal (AIP) to add MIM as a new asset in Aave. The AIP seeks to bring new retail users to the platform while expanding options for stablecoin collateral and lending”, he said in an article published on the Medium platform.
The company explained that the approval of the AIP would mark significant milestones for both protocols. For Aave, listing MIM is an opportunity for the protocol to do what it does best, which is provide liquidity via on-chain lending to stable collateralized assets (MIM is a stablecoin). For Abracadabra, the move helps cement MIM’s position as a leading DeFi on-chain collateralized stablecoin.
According to the firm, Abracadabra.Money is a lending pool protocol that uses interest-bearing tokens as collateral to mint MIM, a soft-pegged USD stablecoin. MIM is pegged using arbitrage incentives in the Abracadabra ecosystem (instead of a hard 1:1 peg backed by a USD treasury). Since its inception, MIM has successfully maintained its parity despite changes in the market.
In his view, MIM is minted into Abracadabra when users stake interest-bearing tokens such as yvYFI, yvUSDT, yvUSDC and xSUSHI. As LP tokens become increasingly popular, users will continue to look for opportunities to use these tokens as collateral when they are short on cash, looking for leverage, or trying to make a fiat purchase. If included, MIM would essentially serve as a bridge between staked LP token holders and Aave, allowing a broader group of users to better utilize their interest-bearing tokens.
“It is also important to mention that Abracadabra’s solution has been widely adopted by retail DeFi communities, as MIM’s dedicated user base shows. We hope that the acceptance of MIM as an asset type on Aave will attract a significant number of MIM advocates to the protocol”, he added.
How to participate (Aave Governance participants)
The firm explained that AAVE and stkAAVE holders can deposit their tokens into the bribe pool for rewards, while the bribe pool’s voting power is used to support or reject the AIP. The incentive to bet is undeniable: stkAAVE offers no return opportunities, and Bribe offers one. Incentivized users who have an opinion on whether MIM should be added to Aave will be able to bid on this voting power and cast their vote accordingly.
How to participate (MIM supporters)
Bribe indicated that it gives MIM supporters the option to bid using the Aave bribe pool, thereby borrowing enough voting power to significantly influence the AIP outcome. This is how it will look like:
• A MIM supporter, let’s call him Sir Mim, logs into the Bribe app and selects the Aave group
• Here, Sir Mim can bid on the group (and his corresponding voting power).
• Sir Mim can monitor his position on the list of bidders and increase his opening bid amount if he wishes.
• If Sir Mim is the highest bidder, he can direct the entire voting power of the Aave bribery pool to support the proposal on Aave.