Bribe Proposes to Add MIM on Aave
Bribe Protocol has submitted an Aave Improvement Proposal (AIP) to add MIM as a new asset on Aave. The AIP seeks to onboard new retail users to the platform while expanding options for stablecoin collateral and borrowing.
Passage 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 to cement MIM’s position as a leading on-chain, collateralized stablecoin in DeFi.
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 (rather than a hard 1:1 peg backed by a USD treasury). Since inception, MIM has successfully maintained its peg despite shifts in the market.
MIM is minted on Abracadabra when users stake interest-bearing tokens such as yvYFI, yvUSDT, yvUSDC, and xSUSHI. As LP tokens grow more and more popular, users will continue to seek opportunities to use these tokens as collateral when they are strapped for cash, looking for leverage, or trying to make a purchase in fiat. Should it be listed, MIM would essentially serve as a bridge between staked LP token holders and Aave, allowing a broadened group of users to better utilize their interest-bearing tokens.
Important to also mention, Abracadabra’s solution has been widely adopted by retail DeFi communities, as MIM’s dedicated user base shows. We expect acceptance of MIM as an asset type on Aave would bring significant numbers of MIM advocates to the protocol.
In short, MIM is a popular, decentralized, on-chain stablecoin. Its acceptance as an asset would allow Aave to capitalize on the lucrative growth of yield-bearing tokens without serious risk.
Bribe is ecstatic to introduce this proposal for two reasons. The first, our mission is to expand retail participation in protocol governance to a broadened group of users. Therefore, we view acceptance of MIM as a method for onboarding more users to Aave, and later, its governance. Second, this proposal offers our first opportunity to demonstrate the utility of the Bribe solution.
How to Participate (Aave Governance Participants)
Holders of AAVE and stkAAVE can deposit their tokens in the Bribe pool to earn rewards, while the Bribe pool’s voting power is used to support or reject the AIP. The incentive to stake is undeniable: stkAAVE in particular bears no yield opportunities, and Bribe provides one. Incentivized users who have an opinion on whether or not 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 Protocol provides MIM supporters the option to bid for use of the Aave Bribe pool, thereby borrowing enough voting power to meaningfully influence the AIP outcome. Here’s what that will look like:
- A MIM supporter — let’s call them Sir Mim — enters the Bribe app and selects the Aave pool
- Here, Sir Mim can place a bid on the pool (and its corresponding voting power).
- Sir Mim can monitor their position on the list of bidders, and increase their initial bid amount if desired.
- If Sir Mim is the highest bidder, they can direct all of the voting power from the Aave Bribe pool to support the proposal on Aave.
Our mainnet launch will coincide with voting on the proposal to add MIM on Aave. We are excited to bring this opportunity to our community to engage with governance through Bribe. Good luck and happy bribing!
About Bribe
Bribe creates DAO infrastructure tooling to incentivize protocol participation. Depositors stake their governance tokens in the Bribe pool to earn income. Bidders borrow the staked votes to support or reject governance proposals. Bribe V1 introduces Voter Extractable Value (VEV) to coordinate and auction powerful coalitions of DAO votes. Bribe is best used as part of a well-balanced and active delegation strategy. For more information, visit:
