Add MIM to Aave V2

Simple Summary

MIM is a soft-pegged USD stablecoin minted by, a lending pool protocol that uses interest-bearing tokens as collateral to mint MIM.


Add MIM to the Aave V2 market.

Interest-bearing tokens that can currently be used as collateral include liquidity provider (LP) tokens such as yvYFI, yvUSDT, yvUSDC, and xSUSHI as well as tokens from Convex and Curve. MIM is the core component to sustain Abracadbra.Money’s lending model. MIM remains pegged to USD via arbitrage incentives within the Abracadabra ecosystem.

MIM is an ideal candidate to be included on Aave to provide more decentralized stablecoin alternatives.


The presence of stablecoins on Aave is a key benefit for lenders of the protocol, providing lenders borrow liquidity for stablecoins against volatile assets lent to Aave. MIM, a reliable and popular stablecoin in DeFi, would be an asset to Aave in this respect. MIM also brings a high volume of liquidity and motivated users, which would in turn direct more liquidity to Aave.

Already present on other lending protocols, MIM acts as a comparable alternative to stablecoins such as USDC, USDT, and DAI. The arbitrage incentives for MIM on Abracadabra also ensure that it will remain pegged to $1, typically done by automated bots that monitor pools for opportunities to capitalize on price differences. MIM has proven the stability of its peg over the past year. For example, the 30 day high and low for MIM are $1.03 and $0.9798, respectively. MIM is also ranked number six out of all stablecoins on the market based on market capitalization.

FRAX, a similar stablecoin listed on Aave, is also soft-pegged to USD and has remained at $1 since its launch in 2020. The 30 day high and low are similar to MIM, at $1.03 and $0.9825 respectively. FRAX is partially backed with on-chain collateral and partially backed algorithmically, a somewhat different approach to soft-pegging than MIM. However, both stablecoins have shown success in maintaining their pegs. Overall, Aave already supports soft-pegged stablecoins that are backed by mechanisms such as on-chain collateral, algorithms, and arbitrage incentives.



  • What is the link between the author of the AIP and the Asset?
    • Founder of Bribe Protocol, a novel DeFi protocol that creates DAO infrastructure tooling to incentivize protocol participation
  • Provide a brief high-level overview of the project and the token
    • MIM is a USD soft-pegged stablecoin minted by using interest-bearing tokens as collateral
  • Explain positioning of the token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?
    • If listed, MIM would become an important stablecoin option for Aave lenders. As a reliable stablecoin, MIM provides a new opportunity for Aave users to borrow against volatile assets.
  • Provide a brief history of the project and the different components: DAO (is it live?), products (are they live?). How did it overcome some of the challenges it faced?
    • MIM launched in early 2021 and currently has over $4.6B in circulating MIM. MIM has never broken the peg of $1 despite sharp market downturns since its launch. Abracadabra’s protocol token, SPELL, is used to incentivize users to maintain liquidity. Staked SPELL (sSPELL) is also used for fee-sharing and governance.
  • How is the asset currently used?
    • MIM is currently used as a stablecoin in decentralized exchanges such as Curve, SushiSwap, and Uniswap.
  • Emission schedule
    • There is no emission schedule; interest-bearing tokens are collateralised and injected into the system, after which they are minted into MIM tokens.
  • Token & protocol permissions and upgradability
    • MIM tokens are minted by a 6/10 Multisign, deposited in the Kashi Markets smart contracts, and then injected into circulation after the user deposits the collaterals.
  • Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)
    • Market Cap: $4,637,898,723
    • 24h Volume: $245,134,813
    • Volatility: Extremely Low
    • Maturity: Early-Mid
  • Social channels data (Size of communities, activity on Github)
    • 107.9K followers on Twitter, 41.2K members on Discord, Github is updated frequently.
  • Contracts date of deployments, number of transactions, number of holders for tokens
    • Date of Deployment: January 7th, 2021
    • Number of Transactions: 129.7k+
    • Number of Holders: 4.4k+


MIM offers a unique use case in that Abracadabra mints MIM for illiquid interest-bearing tokens. DeFi users get MIM, a liquid stablecoin, in return for these tokens. This has created a large user base of over 4.4K DeFi users who are seeking MIM in return for their interest-bearing tokens. Adding MIM to Aave not only brings these users, but provides another stablecoin for existing Aave lenders to take advantage of.

MIM is a natural next step for Aave when adding both an option for collateral and for depositing/lending.


MIM will be used for depositing and lending as well as collateral, with the following suggested parameters to be finalized via Aave governance:

  • Loan-to-Value (LTV): 50%
  • Liquidation Threshold: 60%
  • Liquidation Bonus: 6.5%
  • Borrowing Enabled: yes
  • Reserve Factor: 10%

A note from the proposer, Bribe Protocol:

Bribe is a new DeFi protocol that pays DAO token holders to govern. Our first protocol integration is Aave. We will be creating an Aave pool on Bribe where holders of AAVE and stkAAVE can deposit their tokens and earn rewards while other users bid for their voting power. Learn more about Bribe and how we’re integrating Aave here:

Audits/Security Reviews Immunefi Bounty Program


Website -

Twitter -

Docs -

Github - Abracadabra · GitHub

Token Contract - $1.01 | Magic Internet Money (MIM) Token Tracker | Etherscan


Copyright and related rights waived via CC0.


Hello, thanks for your well written proposal.
Here’s some thoughts

  • I think V3 with exposure ceiling is a better fit to host MIM than V2 as such my personal support goes to MIM with these parameters on V3 and will only support a 0% LTV on V2.
  • V3 supports multi-tokens rewards natively, aMIM holders might be able to earn SPELL on top of other incentives
  • MIM partly use tokens that ends up in Aave as collateral, I’d love to have the opinion of Risk on this in case of large liquidation events.
  • MIM is a great use-case asset for V3 emode to contribute to MIM stability.
  • MIM support on V3 deployment on Fantom, Arbitrum & Avalanche might be well received by the communities on these networks.

Hey @BribeProtocol - glad to see you jumping in here!

Thanks for taking the time to lay out this and consider a future of Aave with more diversified stables. MIM seems to attract a passionate community, onboarding greater range of users.

I will Mirror @MarcZeller’s comment above:

MIM is very much a cross-chain stablecoin - with shared values and use cases across these networks.

How does MIM fit into Bribe’s long term goals? Is Abracadabra an ecosystem you intend to support?

Won’t support anything related to criminals. Latest discovery regarding Daniele and Sifu isn’t something that should be integrated into Aave.


@EzR3aL good catch - and very timely.

I think it is best to wait to see how this plays out before supporting further $MIM integration.

MIM is CDP based stablecoin,

Even if some of the collateral assets collapse due to recent “news” if liquidations are efficient, the MIM supply will just go down as positions are liquidated.

that being said all these projects are deeply intertwined using the asset of one protocol as collateral to take huge loans for positions on other protocol.

Maybe a wait and see approach is the best fit but I don’t think MIM with current information is deeply at risk of depeg.


I do think that just using the recent news to deny MIM is not really enough, because what should matter is whether MIM has enough stability and liquidity with a good price oracle to be used in the lending market. IMO, lending market users own and are responsible for their speculation decisions, not governance.

Also, is the proposed liquidation threshold lower than the proposed LTV or am I just crazy?

Is there any statement from “BribeProtocol” about this proposal following the recent events around Wonderland/Abracadabra etc… ?

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