AMA Recap with Mimas Finance Hosted by MMF (28th Dec)
Terra: Please give a brief introduction of yourselves please!
0xGoten: I guess I can go first, I’m 0xGoten from Mimas Finance, I’m former FAAMG engineer, where I used to lead a few teams working on security and applied cryptography. I’ll let @OxYamcha introduce himself
0xYamcha: I’m 0xYamcha, also a former FAAMG software engineer from a security background. We recently developed Tranquil Finance, the first and only money market on Harmony ONE as our first project in the DeFi space.
We’re excited to launch Mimas and expand to cronos chain!
Terra: Can you give some background about the Tranquil team, and what spurred you guys into kickstarting in the Cronos Chain?
0xYamcha: We have been successfully operating Tranquil Finance, the largest and only money market on the Harmony ONE blockchain for almost 2 months with over $70M in deposits and $30M in borrows. We also launched, stONE, a liquid staking derivative for Harmony
Our team is very enthusiastic about the Cronos ecosystem. We believe that it provides a perfect combination of low transaction fees and exposure to the massive Crypto.com user base. I particularly think the Cronos chain can easily grow to one of the top 5 chains based on TVL.
We also believe that Mimas Finance provides a unique solution for Cronos, by combining a lending market with a liquid staking protocol, we can provide immense value for the Cronos community, and fill a gap in the current Cronos ecosystem.
Terra: You mentioned something about liquid staking? I think that term is kinda new here, can you guys elaborate?
0xGoten: A liquid staking derivative — stCRO — allows users to stake their CRO tokens with validators, helping secure the network and earn staking rewards. Unlike traditional staking, stCRO can also be used in DeFi dapps such as Mimas Lending or be deposited in a MMF LP to earn trading fees and LP rewards Basically, you can have your cake and eat it to: earn both CRO staking rewards and DeFi yields.
Terra: Oh this is really cool, being in the space for quite some time, this is probably the first time I am going to experience an interaction with validator. Do you have any insights as to what the potential APR will be like?
0xGoten: It will be very close to the protocol delegation APR, which for Cronos should somewhere between 10–15%
0xYamcha: But that’s just the staking APY. You can then use the stCRO token to get further yield.
Terra: So I’ve checked out your website at https://mimas.finance/ Your mainnet launch was “limited”. What does it mean exactly?
0xYamcha: There are no allowlists, Mimas Finance as of 30min ago is available to anybody. But there are two key restrictions: Deposits are capped, each account can only deposit the equivalent of USD $500. MIMAS rewards are disabled, which translates into lower APYs.
Terra: Ok, do you have a tentative timeline as to when it will be a full release? Or something like a schedule?
0xGoten: yes, the full release will happen right after the IDO. The full functionality is already there, we are just polishing the product now
Terra: Is there a reason why you are capping the deposit at just $500? Our community is probably raring to go and will ask for more!
0xGoten: We are still doing some final tweaks and polishing our platform, but we also wanted everybody to have a chance to play with it before our IDO. So, capping the deposit was the best compromise the team found.
Terra: So with MIMAS rewards disabled for the time being, I’m sure there are some incentives for deposits?
0xYamcha: We’ll have MIMAS rewards for both borrowing and lending. It will be a combination of MIMAS and rMIMAS, a timelocked version of MIMAS
Learning from the experience of other protocols, locked rewards align incentives much better for actual users of the protocol instead of mercenary yield farmers.
Terra: So other than lending and borrowing, do you have any other features that are in the roadmap after the launch?
0xGoten: We will quickly introduce the locked staking pool to share 75% of ALL protocol fees with MIMAS stakers.
Afterwards, in 2022 Q1-Q2 timeframe, we will launch stCRO, a liquid staking derivative.
We believe liquid staking is underexplored in DeFi. As a yield bearing token, it opens up many possibilities. In the longer term, we would like to push for more DeFi adoption of stCRO by partnering with other Cronos ecosystem projects. We also have longer term visions of using stCRO as the basis of completely new use cases; an example would be a fixed yield product similar to Anchor.
Terra: I see, so for Tranquil Finance on ONE, all these products have already been launched? Or are they concurrent?
0xGoten: Yes, for Tranquil we already launched those products
Terra: So I realise your product is also a little similar to Tectonic which just recently launched. Can you tell us why we should go for Mimas instead of them? or what are the differentiating factors that makes you superior?
0xYamcha: Sure! Strong L1 chains have multiple healthy lending markets COMP / AAVE in ETH, JOE / QI in AVAX.
Competition is great and drives ecosystem development, pushing everyone further and faster.
That said we are better in many ways
- stronger tokenomics with locked rewards (rMIMAS) and protocol fee sharing using locked staking
- our oracle stack is way more decentralized and robust, having been battle tested with tranquil
- creating a liquid staking derivative that drives the lending flywheel faster
- our partnership with MMF :)
JunC: Question about tokenomics: why is team allocated about 20% while in tranquil’s, it is only 10% for the team?
0xYamcha: For Tranquil we had a small seed round. But for Mimas it is just the team
JunC: The incentive for rMimas can only be redeemed in 6 months, is it linearly redeemed? what is the redemption period like?
0xYamcha: rMIMAS takes 6 months to unlock. It doesn’t have a vest
SkyWalker199410: I have a very simple question. Why did you choose MMF? There are so many protocols out there on cronos to begin your journey with, why pick us?
0xGoten: Well, we believe in the team and the community behind MMF, their growth has been incredible, and their launchpad program seems really solid
JunC: do you have a plan to allow staked MMF to be deposited in MIMAS protocol for borrow?
0xYamcha: Yes! It would be a bit after our full launch, but our oracle stack is capable of supporting these cronos native assets
kai: How will $mimas be better than others that’s offerering the same thing on Cronos? What are your key features that you think would be better and how? Will we see the same as what happened over at….
0xYamcha: There’s only one other money market right now on cronos, Tectonic. But even with more, we believe our 75% fee distribution and liquid staking will be key differentiators
CroKat: So are there two separate teams? 1 in tranquil while another in Mimas?
0xGoten: the core dev team is essentially the same for tranquil and mimas, but we mods, design, marketing are specific for each product.
kai: Security is the most important thing to consider want starting up a project, how secured is this project for users and investors?
SkyWalker199410: Following onto this, are you considering having a audit done?
0xGoten: The tranquil code was already audited by CertiK, and even though the Mimas code is very similar, we are going to start an audit very soon
JunC: Why is the MIMAS team allocation 20% with a linear vesting schedule of only one year? it is about 1.67% per month.That is very high allocation and short vesting considering you guys have previously fund raise on harmony one and doing another new fund raise on cronos
0xYamcha: We are always open to adjusting tokenomics. This vesting is not uncommon among projects and our team is quite large and executes very quickly.
Update: We looked back at our team allocation and moved it to a 2 years linear vest, which essentially matches the Tranquil one, while aligning the longer term incentives for the team.