KIR-2 l Introducing BTCMK, backed by ‘Kaneda’ BTC Mining Bonds

Integration Request (KIR)
1

Summary:

This proposal is introducing BTCMK, a KUMA Interest-bearing token backed by KUMA NFT, themselves backed by Bitcoin ASIC Equipment owned by Kaneda.

Context:

Mimo Capital AG is currently working to tokenize Kaneda Bitcoin ASIC corporate bonds in the form of KUMA NFTs. Mimo Labs proposes to accept this USD denominated NFT through the creation of the BTCMK by the Protocol.

Rationale:

Kaneda is a company which owns and leases GPU computing power (A100, H100, RTX 4090) specialized in training artificial intelligence models as well as Bitcoin ASIC. To boost growth, the company issued bonds, collateralized by these Bitcoin ASIC. The yield of the bonds comes from the yield generated by the ASIC mining. As the BTC price is variable as well as the electricity price, the bond yield is also variable.

Note: The structure of these bonds is not yet definitive, and some parameters are still under discussion. This means that some information is missing, and will be made public at a later date. The proposal has been posted on the forum before the finalization of the structuration of the bonds in order to be able to reach the market as soon as the bonds are emitted and tokenized.

The BTCMK would be backed by Kaneda Corporate Bonds, tokenized on-chain as NFTs by Mimo Capital AG. Below are the informations of the KUMA NFT(s):

  • currency: USD
  • issuer: Kaneda
  • term: TBD

The expected yield of the bonds would range from 10% to 20% per year, depending on the yield of the underlying ASIC.

For a given riskCategory, there can be multiple individual bonds. For example the US treasury issues 1y government bonds every month, with the same inherent risk. We propose to accept the Kaneda riskCategory and its subsequent underlying to ease the integration of new bonds into Kuma Protocol for the BTCMK.

We propose to set up the SellBond Fee (via the ‘sellBond’ fees function) to 0.01%. This means that a fee of 0.01% is taken on each KIBT minted.

Since the yield of underlying bonds backing the BTCMK tokens will be floating, the BTCMK would be a non-rebase tokens, mainly due to technical limitations. It means that the quantity of tokens in the user wallet do not increase while the price of the asset is increasing over time.

Once the vote is accepted on Snapshot, the DAO will determine the chain(s) where the token would be deployed on a second KIR discussion.

Means:

  • Human resources: If the proposal is approved, the KUMA Multisig signers will have to execute the proposal following the technical voted technical implementation.
  • Treasury resources: There is no treasury cost.

Technical implementation:

  1. Smart contracts:

    • KUMASwap : Deployment for BTCMK
    • KIBToken : Deployment for BTCMK
    • KUMAFeeCollector : Deployment for BTCMK

  2. Setters on the KUMAAddressProvider smart contract:

    • setKIBTToken : Setter for BTCMK
    • setKUMASwap : Setter for BTCMK
    • setKUMAFeeCollector : Setter for BTCMK

  3. Setters sur le MCAGRateFeed :

    • setOracle : Setter for BTCMK

  4. Roles attributions :

    • Attribution of KUMA_MIN_ROLE to each KUMASwap contract : Attribution for BTCMK
    • Attribution of KUMA_BURN_ROLE to each KUMASwap contract : Attribution for BTCMK

Voting options:

  • Accept the creation of BTCMK
  • Against the creation of BTCMK / Rework the proposal
  • Abstain

Authors: Jean Brasse from Mimo Labs

Community poll:

  • Accept the creation of BTCMK
  • Against the creation of BTCMK / Rework the proposal
  • Abstain
0 voters
1 Like