The world is changing.
Sometimes what you build changes the world, and sometimes the world changes, so you have to change what you build.
Everything we’ve built at Mimo has always been about providing a scalable and sustainable infrastructure for many users.
We have built Mimo and our protocol in this regard. We have disregarded some potentially profitable strategies so we could focus on building a sustainable product. However, it is clear that the world is moving and that it’s time we reveal some of the next steps in our product strategy.
Fixed income, derivatives, and associated products:
Users of financial services are not looking for high multiples in price hikes of assets they buy anymore; they’re looking for predictable sources of revenue to hedge inflation and potentially make sizable returns. We see a move towards less extreme volatility, where the few risk seekers left will have to take leveraged positions, and the more risk-averse will look for strategies bearing predictable and safe yields. We already see a radical change in volatile asset demand, and protocols offering users the chance to profit on stablecoins are still alive and kicking.
We’re expanding our product line to fit this narrative and intend to bring additional features to our protocol to support this effort.
To start, we’ll have a new interface for our protocol to provide users with easier access to the features we’ve built to help with exposure management, such as leverages, stop losses, and more.
Then, we intend to come up with a few updates to the core of our protocol to support interest-bearing tokens as collateral. These tokens are essential to our strategy, and we want to ensure Mimo supports them.
We’re also re-shaping our tokenomics to incentivize sustainable behavior better. We will present a few updates on the forum and discuss them with the community in hopes that we can provide a more sustainable protocol for the current market conditions.
One reason for the tokenomics update is that we anticipate a different kind of demand in protocol use following recent partner discussions. We also want to limit MIMO incentives at the moment, as prices are low, and current levels do not match the demand of some of our users — more on this in a subsequent post on the blog of our protocol.
A safer platform to use:
Minting tokens using collateral should be a pleasing experience, and after listening to our users’ feedback, it became increasingly clear that we could do better in this area. Meet SuperVaults v2, aka Mimo Proxy. Behind this name hides a collection of smart contracts allowing users to not only rebalance their collateral as they wish but also to automate and even delegate the management of their assets. We will share more about this in a subsequent blog post, but the gist is that we’re making minting stablecoins simpler than ever. Users should be able to have liquidity of their assets and peace of mind at once.
A more powerful way to partner:
In DeFi, partnering can mean anything and everything, and it generally doesn’t mean enough. For Mimo, partnering means having skin in the game, so we’ve built InceptionVaults. It allows anyone to take the counterparty risk for borrowing funds using another token as long as it has a price feed. This product will let users borrow using new tokens as collateral without the whole platform having to take the risk, enabling the listing of riskier assets because the lending is fully peer-to-peer and decentralized. However, Mimo Labs can generously decide to be the first to take the risk for our partners. We’ll first open Inception Vaults for SDAO, AKTIO, and CHSB.
When using Mimo to mint and sell PAR, users take short positions on Euro, which was a great thing to do for a while, but many are reconsidering for a good reason. If Mimo intends to stay relevant, it will need to allow more actions, like borrowing and minting more token types, while providing sufficient liquidity for each step to make sense. Accepting interest-bearing tokens as collateral is another crucial element in this plan. It would give users a safer experience (as your collateral grows in value, your position becomes safer).
Mimo will therefore mint more tokens and partner with new projects. The first example is an upcoming collaboration with a fast-growing Neobank in the Middle East, leading to a deep integration between our non-custodial services and their TradFi products.
Our update in tokenomics will help us reach these goals.
Before the end of the year, we’ll come up with a few blog posts highlighting individual elements of our new strategy. Meanwhile, please stay tuned. Some people call it the bear market; we call it prime time. Go Mimotaurs!