SIP-002: Onboarding Convex MIM-3crv


This proposal aims to add Convex MIM as a whitelisted collateral asset on Sturdy’s stablecoin market with a maximum LTV of 83%. This would enable users to lever up Convex MIM yields via stablecoin borrowing with the goal of raising yields for both lenders and borrowers.


Yields across LPs currently accepted as collateral have fallen recently. LP yields before leverage range from 1.12% to 2.53%; even at maximum leverage with the highest yield LP users can only get a maximum of 23.27% APY. Since lenders receive a portion of yield farming profits, yields across the platform have been negatively affected.

Convex MIM currently earns 8.56%, per, dwarfing the existing whitelisted collateral assets on Sturdy. Integrating Convex MIM as a whitelisted collateral would provide borrowers with a higher yield option to benefit existing users and attract prospective users. Due to Sturdy’s yield-sharing mechanics, the use of Convex MIM by borrowers would also result in a boost to lending yields within Sturdy’s stablecoin market.


Convex MIM is a Curve stablecoin LP consisting of MIM, DAI, USDT and USDC. Users can deposit MIM and 3crv (USDT, DAI & USDC) on Curve to receive the LP token, which can then be staked on Convex for CRV and CVX rewards.

MIM, or Magic Internet Money, is a stablecoin with a market cap of over $100,000,000 minted by Abracadabra and used throughout DeFi. The token has faced scrutiny over the past year; MIM was used at the center of Wonderland, the protocol fell into hot water after it was revealed former cofounder of the failed crypto exchange, Quadrigacx, was managing the treasury; MIM was also heavily exposed to the FTX collapse, FTT made up over 30% of MIM’s treasury during the FTX’s fall from grace.

Despite being heavily exposed to some of the greatest scandals in crypto history, MIM has continued to be used across DeFi and has managed to hold its peg.

While MIM does have some bad debt, roughly $8.2 million or 5.85% of the market cap, it has managed to maintain its peg and has shored up its collateral backing to compensate for the losses it has incurred over the past year. Despite being fairly exposed to just about every exploit in recent history, from Luna to FTX, the token has persisted and the team has worked diligently to correct course and mitigate blowback.

With more conservative risk parameters to negate increased risk from MIM’s bad debt, the use of Convex MIM as collateral on Sturdy could be a relatively secure, high-yield opportunity.

Contributors previously developed and deployed this integration prior to the formation of the Sturdy DAO, but never activated it due to concerns about risk. If this proposal were to pass, the existing integration could be activated with risk parameters as defined below.

Risk parameters

LTV: 83%
Liquidation threshold: 85%
Liquidation fee: 6%


definately vote for this

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