Summary:
Mimo Labs proposes to deploy the KUMA Protocol on Polygon PoS.
Context
Following the successful deployment and launch of the KUMA Protocol on Ethereum we propose to expand the protocol to Polygon PoS, a proof-of-stake Ethereum sidechain (note: there are currently discussions to upgrade to a zkEVM validium).
The proposal presents an overview of the KUMA smart contracts (the “KUMA Protocol”) with the main features as well as proposed KIBT(s) to be deployed. The proposal requests a vote from vMIMO holders regarding a potential deployment on Polygon PoS.
Rationale:
Following KIP-2 et KIP-2.2 the KUMA Protocol has been deployed on Ethereum with USK and EGK as two first accepted KIBTs:
- The USK is a KUMA Interest-Bearing Token backed KUMA NFTs, themselves backed by 12 Months US T-Bills. The token deployment has been approved by the DAO in the KIP-2.1.
- The EGK is a KUMA Interest-Bearing Token backed KUMA NFTs, themselves backed by 740 days Next.e.GO Mobile SE Corporate Bonds. The token deployment has been approved by the DAO in the KIP-4.
Deploying the protocol on Ethereum has been a good way to bootstrap the protocol. KUMA was designed to enable anyone, from as little as $0.0001, to become exposed to tokenized bonds in a permissionless way. However, due to the high gas fees on Ethereum (several tens of dollars for a swap), it is virtually impossible for small investors to access the available tokens, as it is not profitable for them.
Polygon PoS is an Ethereum sidechain, number 5 in terms of TVL at the time of writing (according to DeFiLlama) and processing over 3 million transactions per day on average (according to DeFiLlama), enabling transactions to be carried out at very low cost (a few cents per transaction). Many native Ethereum protocols are deployed on Polygon PoS (Aave, Balancer, Uniswap, Parallel, etc.), making it a chain of choice in terms of integration and organic traction.
In line with the deployment of USK and EGK on Ethereum, we propose their creation on Polygon PoS with their same respective RiskCategory.
USK: The KIBT would be backed by 12 months US T-Bills, tokenized on-chain as NFTs by Mimo Capital AG. Below are the informations of the KUMA NFT:
- currency: USD
- issuer: US
- term: 12 (months)
EGK: The KIBT would be backed by 740 days Corporate Bonds, tokenized on-chain as NFTs by Mimo Capital AG. Below are the informations of the KUMA NFT:
- currency: EUR
- issuer: Next.e.GO Mobile SE
- term: 740 (days)
Note: The KIBTs deployed on different chains wouldn’t be seamlessly bridgeable between chains. However, KIBTs holders would be able to get back the KUMA NFTs from KIBTs then ask Mimo Capital AG to burn their NFT on a chain A to mint them on a chain B, then sell the NFT for KIBTs.
Deploying the KUMA Protocol on Polygon PoS would open up new markets, both in terms of users and integration. Jarvis and other protocols deployed on Polygon PoS have already shown particular interest in the products offered by KUMA. What’s more, if KUMA’s deployment on Polygon PoS is approved, Mimo Labs will propose to Parallel DAO to add wUSK as collateral (a wrapped version of USK) for PAR and paUSD.
Means:
-
Human Resources: Multisig signers will need to sign transactions to execute the proposal
-
Treasury Resources: There is no cost for the treasury to deploy the protocol on Polygon PoS. (Mimo Labs team will cover the cost of deployment)
Technical implementation:
If the proposal is approved, a second proposal will be posted detailing the protocol deployment plan.
Voting Options:
- Accept to deploy the protocol on Polygon PoS
- Against/Rework the proposal
- Abstain
Authors: @starny & @JeanBrasse from Mimo Labs
Sentiment poll:
- Accept to deploy the protocol on Polygon PoS
- Against/Rework the proposal
- Abstain
0 voters
KIP-5┃ KIP-5┃Deploy KUMA Protocol on Polygon PoS is live on Snapshot !
Vote here 
With over 6.2M votes from $vMIMO holders, KIP-5 has been approved !