Summary:
Mimo Labs proposes to deploy the KUMA Protocol on Linea Mainnet.
Context
Following the successful deployment and launch of the KUMA Protocol on Linea testnet, and with the launch of Linea Mainnet Alpha, a zkEVM Ethereum Layer 2 built by Consensys, we propose to expand it to Linea Mainnet.
The proposal presents an overview of the KUMA smart contracts (the “KUMA Protocol”) with the main features as well as proposed KIBT(s) (already approved by the DAO) to be deployed. The proposal requests a vote from vMIMO holders regarding a potential deployment on Linea Mainnet Alpha.
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.
With more than 3800 NFTs minted in 5 days following the deployment of the KUMA protocol on Linea testnet, we observe a strong demand for RWA products accessible to anyone on Linea Mainnet.
Linea Overview:
Linea is an EVM-equivalent zk-rollup, with a Type 2 zkEVM as its execution engine. Linea aims to bring the Ethereum experience to developers and users at a fraction of the cost.
As a Type 2 zkEVM, Linea prioritizes compatibility with all Ethereum applications and infrastructure above everything else.
Linea zkEVM benefits:
- Seamless integration with EVM wallets (MetaMask), developer tooling (Truffle, Remix, Brownie, Foundry, Hardhat, et al.), and critical infrastructure like node providers (Infura) and execution clients (Besu)
- A near-identical experience to that of using Ethereum—Linea uses ETH for gas payments, for example
- All the upside of an Ethereum scaling solution (low fees, near-instant confirmations, high TPS) and none of the downsides inherent in competing projects (delayed finality, high costs, and poor security)
- EVM-equivalent infrastructure for you to unlock new use cases and build novel applications while benefiting from Ethereum’s security, decentralization, and developer experience
You can learn more about Linea in their technical documentation: https://docs.linea.build/developers/quickstart
In line with the deployment of USK and EGK on Ethereum, we propose their creation on Linea Mainnet 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.
With more than 5M addresses created and 46M transactions processed on their testnet, deploying the KUMA Protocol on Linea Mainnet would open up new markets, both in terms of users and integration; by making KUMA the first RWA tokenization protocol deployed on Linea.
Note: The Mimo Labs team is currently in discussions with DEXs and Lending protocols teams that will deploy on Linea to integrate KUMA KIBTs inside their protocols.
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 Linea Mainnet. (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 Linea Mainnet
- Against/Rework the proposal
- Abstain
Authors: @JeanBrasse from Mimo Labs
Sentiment poll:
- Accept to deploy the protocol on Linea Mainnet
- Against/Rework the proposal
- Abstain
KIP-7┃Deploy KUMA Protocol on Linea Mainnet
Vote here 
With over 6.3M votes from $vMIMO holders, KIP-7 has been approved !