Introducing the IOO: Initial Open Offering
A dive into the Initial Open Offering (IOO) and the MYSO Token (MYT)
We’re extremely excited to announce the launch of the Initial Open Offering — or IOO for short, a novel distribution mechanism with the goal of driving protocol adoption, fair token distribution and and education about on-chain product primitives.
Initially, MYSO will demonstrate this concept with the MYSO Token (MYT) using the existing and permissionless functionalities of the MYSO protocol. Going forward, other projects may decide to follow and to launch their token via an IOO on MYSO as well.
The IOO will begin on Wednesday, May 22nd at 3:00 PM UTC and users will have the opportunity to pledge collateral and participate until Monday, May 27th at 3:00 PM UTC.
What is the MYSO Token IOO?
An IOO is a novel token distribution mechanism which will allow users to essentially farm MYSO token call options by using either an LST (like rETH), or stablecoin (like USDC) as collateral.
What this means is that users will be able to acquire the newly-launched MYT by pledging tokens as collateral as part of a MYSO loan — they’ll then have the option to either keep or return it prior to some expiry date to reclaim their collateral.
In terms of outcomes, let’s examine two possible scenarios:
i) If the MYSO token outperforms the pledged collateral price, users can just keep the MYSO token and default on the loan — any rational user will want to hold on to the MYSO token and forfeit the collateral if the MYSO token is worth more at expiry.
ii) Otherwise, if the MYSO token doesn’t outperform the pledged collateral price, users can simply return the MYSO token and reclaim the pledged collateral.
The following tokens are available to be pledged as collateral for the official MYSO token IOO:
- Stablecoins — USDC, USDT, DAI, fxUSD, crvUSD
- LSTs — rETH, mETH, wstETH
- Other — GLP, gTokens (gDAI, gUSDC, gETH — these are capped at $250k each allowed to be pledged)
MYSO Token IOO Timeline
The IOO will begin on Wednesday, May 22nd at 3:00 PM UTC and users will have the opportunity to pledge collateral and participate until Monday, May 27th at 3:00 PM UTC.
The IOO loan expiry will be 14 days after loan inception.
MYSO Token IOO Valuation
Users will be able to farm MYSO tokens at a starting valuation of $22 million FDV — the same FDV and terms as MYSO’s institutional seed investors. The valuation and terms will be increased gradually based on volume.
This means that the earlier a user is able to pledge collateral into the IOO, the better the terms will be for them to acquire MYSO tokens.
2.5% of the total MYT supply, or 2,500,000 MYT, will be distributed via the IOO. The minimum amount of tokens you can acquire per address is 1,000 MYT and the maximum is 50,000 MYT.
Example Scenario
Say a user wants to pledge 1 mETH (~$3500) as collateral and get access to MYSO tokens as one of the first users of the IOO. They’d now be able to borrow ~16,000 MYSO tokens based on the seed valuation ($0.22 per MYSO token at $22 million seed FDV).
Once a user pledges the mETH collateral, they get immediate access to the MYSO tokens. The MYSO Protocol then technically allows a user to return the MYSO tokens any time before loan expiry and get back all of the pledged collateral.
Let’s say mETH has remained stable over the loan period — if after this time the MYSO token price is above the $0.22 entry price, a rational user would just keep the MYSO tokens and forfeit their mETH collateral.
Otherwise, a user can just return the MYSO token and reclaim their mETH collateral before expiry (see illustration below).
IOO vs. Token Sale
The IOO is an innovative mechanism that blends the permissionless lending/borrowing functionalities of the MYSO Protocol with the possibility for initial token distribution.
As opposed to a simple token sale, users have additional downside protection as they can pay back the MYSO token and reclaim their collateral at any point prior to IOO expiry. They can therefore see how the token is adopted to make a decision to hold/return the token rather than having to buy the token outright.
MYSO Token Overview
The MYSO token will act as a governance-utility token to secure the entire MYSO ecosystem by fostering cooperation between and giving access to all relevant stakeholders. A distributed and decentralized token-based governance system will allow active token holders to equitably manage the direction and allocation of resources within the MYSO ecosystem. Thus, MYSO token holders will collectively control the MYSO DAO treasury and fee switch.
The DAO treasury can be used to fund new protocol developments as well as bootstrap liquidity within the MYSO ecosystem, such as creating loan offers exclusively available to MYSO token holders. To further grow organic usage of use-cases for the MYSO protocol, such as retail covered calls, MYSO token holders will also be able to lock their tokens to earn a locking yield for contributing and actively steering MYSO token incentive emissions.
Tokenomics
The MYSO Token (MYT) has a fixed fully diluted supply of 100,000,000 tokens with the following distribution:
- Ecosystem Growth: 9.90% — 9,900,000 MYT
The Ecosystem Growth allocation is a strategic portion of tokens set aside for contributors to the MYSO network, including developers, partners, and other key stakeholders, as well as for the Initial Open Offering (IOO), airdrops, and other activities.
These tokens are earmarked to enhance and expand the platform’s reach and capabilities, ensuring that those who contribute to the network’s success are rewarded and motivated to continue their valuable involvement. This entire bucket (9.90%) will be unlocked at TGE.
- Liquidity and Incentives: 30.00% — 30,000,000 MYT
30% of the allocation shall be strategically utilized to bolster liquidity for the MYSO token and incentive user engagement and platform growth. 4.29% or 4,290,000 will be unlocked at TGE with the remaining 25.71% linearly over 18 months.
- Community Treasury: 30.00% — 30,000,000 MYT
This allocation is earmarked for MYSO’s DAO reserves and shall be managed by the community with the ultimate goal of funding new protocol developments as well as bootstrapping liquidity within the MYSO ecosystem, such as creating loan offers exclusively available to MYT holders. This allocation will vest linearly over 48 months.
- Core Contributors: 19.17% — 19,170,000 MYT
A reserved allocation of 19.17% is set aside for both past core contributors (including advisors) and future core contributors, who have been and will continue to work diligently on the development of the MYSO ecosystem. None of their MYT will be unlocked at TGE and such MYT will unlock in accordance with the Token Vesting Schedule.
- Investors: 10.93% — 10,930,000 MYT
This allocation is reserved for MYSO’s investors, who provided funding and ongoing support. None of their MYT will be unlocked at TGE and such MYT will unlock in accordance with the Token Vesting Schedule.
MYSO Token Vesting Schedule
Roadmap
The main focus over the next 12 months revolves around significant enhancements and expansions within our protocol, as outlined below:
- Covered Calls: MYSO is set to scale covered calls to accommodate protocols, founders, and whales, making these elements more accessible and efficient. In addition to this, we plan to soon introduce covered calls for retail users, democratizing access to more sophisticated strategies previously reserved for more experienced or institutional participants.
- Peer-to-Pool Launch: This innovative lending solution allows a user/DAO to create a loan proposal which would pool assets from interested lenders. DAOs can make use of this product to, for example, source deals to secure stables to diversify their native treasury and structure loans with customized repayment strategies/schedules as well as with a conversion feature (similar to convertible bonds in TradFi). This allows the DAO to potentially serve repayments in the DAO’s native token rather than in stablecoins, thereby reducing overall stablecoin borrowing costs. MYSO has recently been awarded an LTIPP grant from Arbitrum with a focus on bringing this product to life within the Arbitrum ecosystem.
- v3 upgrade: In line with MYSO’s commitment to continuous improvement, enhancements are on the horizon with the upcoming v3. While specific details are still under wraps, this upgrade is poised to enhance the efficiency and scalability of the platform, ensuring it remains at the forefront of innovation and user satisfaction.
About MYSO
MYSO is a permissionless and decentralized peer-to-peer lending protocol that specializes in custom loans that allow users to borrow and lend with any ERC20 token. In addition, the protocol supports a wide range of different on-chain structured product strategies like synthetic token buybacks and covered calls. MYSO has facilitated over $1.8 million in volume for on-chain covered call strategies for treasuries/users, including deals with the Telos treasury and Evmos community treasury. MYSO has also partnered and created novel Zero-Liquidation loan markets with many notable protocols like Rocket Pool, Pendle, Threshold Network, and more.
The protocol currently holds a TVL of ~$2m and is currently live on Ethereum, Arbitrum, Mantle, Evmos, Telos, Linea and Neon EVM.
MYSO originated out of the ETHOnline Hackathon in 2021, where it was awarded as one of the finalists. MYSO Finance, the core contributor and developer of the MYSO Protocol, closed a $2.4M seed round in 2022 with several crypto-native investors such as HashKey, Wintermute, Nexo, and GSR. The team behind MYSO comes from a varied background of traditional finance and engineering.
Audits
MYSO is committed to maintaining the highest possible security standards for our code, ensuring that user funds are secure and that the platform is protected from many different attack vectors. This is why our v2 codebase has undergone 3 independent security audits with top teams from the code security space.
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