Guide: Mimo Polygon Pool
Mimo is a multi-chain CDP (Collateralized Debt Position) DeFi protocol governed by vMIMO token holders that offers the first decentralized and overcollateralized EUR stablecoin pegged to the Euro, the Parallel token (PAR). The Mimo Midas pool on Polygon enables users to collateralize a variety of assets and enable diverse strategies and yield-generating opportunities. To help you get started with the pool, we have created this handy guide.
Below is an infographic that covers the whole process, followed by a step-by-step breakdown of the same.
Users can get started with the Mimo pool on Polygon in just a few clicks.
Connecting To Midas Capital
Step 1: Visit The Midas Capital Application
The Midas App features all available pools on the platform across ecosystems, including Polygon, BNB, and Moonbeam. Users can visit the application and review various parameters on the dashboard, including integrated chains, available pools, supported assets, and other vital details, without needing to connect any wallet.
Step 2: Connect Your Wallet
To participate in the Mimo pool, users will have to connect a supported wallet to Midas. The platform currently supports Metamask and WalletConnect, and the Midas UI makes it easy for users to log in seamlessly with a single click.
If you do not have a Polygon chain network in your wallet or are using a new wallet altogether, you can visit Chainlist, connect your wallet, and add Polygon Mainnet to your Metamask account. This, of course, is valid for all chains that you may encounter at Midas or anywhere else.
Supplying Assets To The Mimo Pool
Step 1: Choose The Mimo pool on Polygon
The Midas dashboard displays all active pools on the platform. The pools can be filtered across various parameters, such as the supported chain, total supplied amount, total borrowed amount, your supplied amount, and your borrowed amount. Select the Mimo pool from the main menu to get started.
Step 2: Select The Asset You Wish To Supply
Once you are on the pool page, you can choose the asset you wish to supply as collateral in the pool. The pool currently supports MIMO, PAR, USDC, DAI, FRAX, WMATIC, and various LP tokens as depositable assets. Once you have selected the asset you wish to deposit, click on it, then click Supply.
Step 3: Confirm The Transaction
Once you click on Supply, enter the amount you wish to deposit in the pool, and then confirm the transaction. Once the transaction is confirmed, your deposited assets will start reflecting in the pool. Now you have added liquidity to the pool and can generate yield for supported assets or borrow against your collateral.
To enable users to make the most of their assets, Midas supports various LP tokens as collateral in the pool. Therefore users can access their liquidity even when their original capital is earning rewards elsewhere. Moreover, many of these LP tokens are then redeposited by Midas into supported yield-generating strategies for additional yield for users. This is possible through the ERC-4626 tokenized vault standard. In the Mimo pool on Polygon, users can deposit certain LP tokens from Curve, Arrakis, and Balancer, which are then redeposited into the respective Beefy vaults.
Collecting Rewards
The Mimo pool offers rewards to users supplying certain assets and LP tokens. The rewards are available in the pool UI itself, which can then be claimed with a single click. Once you have accrued rewards, you can click on the ‘Rewards’ section to collect your rewards.
Borrowing Against Your Collateral
Users that have supplied enough liquidity in the pool can borrow assets against their collateral. Currently, the minimum amount that can be borrowed is $100 worth of assets.
The Mimo pool currently supports DAI, FRAX, PAR, USDC, and WMATIC as borrowable assets. Choose the asset you wish to borrow, enter the required amount, and then click confirm.
The pool page also displays the borrow limit with respect to your deposits, which showcases how much of your collateral LTV you are borrowing. We do not recommend users borrow 100% of their borrow limit to avoid unintended liquidations. Moreover, the more volatile the collateral, the less amount you should borrow to have some breathing room in case the price of the asset fluctuates. This will help avoid liquidations in minimal price movements.
Repaying The Borrowed Assets
To repay the borrowed assets, users can head to the pool and click on the respective asset. Once the asset menu opens, click on Repay, select the amount you wish to repay, or click on ‘MAX’ to clear your debt balance.
Once the amount is confirmed, click on confirm transaction. Note that you will have to pay a higher amount than borrowed due to the accrued interest.
Withdrawing The Supplied Liquidity
Once you wish to withdraw the assets you have supplied, you can head to the pool and click on the respective asset, then click withdraw. Select the amount you wish to withdraw, or click on ‘MAX’ to withdraw all of the respective asset. Once the amount is confirmed, click on confirm transaction.
About Midas Capital
Midas Capital is bringing isolated and customizable money markets to EVM-compatible blockchains. Enabling users, DAOs, and protocols to create customized and isolated pools for lending and borrowing any asset, Midas is building a cross-chain ecosystem that democratizes money markets. Pool creators have the flexibility to modify pool parameters (interest rate curves, oracles, collateral factors, pool fee, etc.) according to their risk appetite. With isolated pools, Midas offers stellar features for large-scale institutions, protocols, and traditional investors.
