mimo: A More Evolved DeFi Platform
mimo is leading the way for the next wave of DeFi on the IoTeX blockchain. mimo is a decentralized exchange (DEX) with multi-chain functionality for peer-to-peer trading of IOTX and other compatible assets. Now mimo is evolving to become a DAO-governed DEX and is launching its own token.
Introducing mimo’s newest alien friend: PICO! ($PICO) mimo needs advice from time to time with no governance in his universe. In comes PICO to save the day and help make some decisions for mimo. And what’s good for mimo is good for the community.
mimo first launched in September 2020 with limited trading pairs and was the first decentralized exchange (DEX) on the IoTeX network. The mimo V2 upgrade made the platform compatible with Uniswap V2 pairs for easy integration with different dApps. mimo is still, by far, the biggest liquidity provider ($30M TVL) on IoTeX and serves as a decentralized exchange for powering IoTeX DeFi ecosystems.
When mimo was launched, there were only a few native dApps on IoTeX. Now the IoTeX ecosystem has grown rapidly with 150+ dApps and many more building natively or porting to IoTeX from other chains.
We see there is an increasing need for a DEX with decentralized governance to provide the best incentives to participate in the liquidity pools on IoTeX to promote long-term sustainability.
mimo’s vision has always been to empower next-gen DeFi products that utilize our state-of-the-art automated liquidity protocol and IoTeX's lightning-fast speed, low gas fees, and cross-chain capabilities. mimo is taking this mission to the next level to ensure that all participants can benefit from the rapidly growing IoTeX DeFi ecosystem.
What Problem is mimo Addressing?
Current DEX models are facing the issues of short-term mining that harm the longevity of DeFi ecosystems. When liquidity providers are presented with short-term incentivization, it leads to mercenary mining and selling pressure. Yield farmers frequently make deposits into liquidity pools only to pull them out within the first few days to maximize their rewards.
This short-term behavior causes less token utilization and hurts the sustainability of DeFi ecosystems. To solve this problem, mimo is adopting a different approach by combining its current DEX model with Curve’s veToken mechanics and a DAO structure.
mimo aims to provide both short-term and long-term benefits to the IoTeX platform. This new model works to bootstrap liquidity for asset trading and protocols, resulting in TVL growth as well as better user experience, stability, and security when trading.
mimo will achieve long-term sustainability for the IoTeX ecosystem by empowering liquidity for MachineFi dApps.
MachineFi-powered dApps will have their own tokens with unique utility. You will be able to receive tokens for your real world activities such as walk-to-earn, drive-to-earn, and more. Creating liquidity pools (LP) with mimo’s token PICO will increase liquidity depth while lowering slippage for traders.
Many current liquidity providers are incentivized with high returns in a short period of time. However, because MachineFi dApps will have greater utilization, a model is needed for these participants of the new machine economy who believe in the long-term success of such projects while still receiving benefits and rewards. This will foster a thriving machine economy where dApps on IoTeX will receive stability and investors will be incentivized to see the dApps flourish over time.
How will this model work?
As mentioned, mimo DEX will now adopt a DAO structure with Curve’s veToken mechanisms (a Vote Escrow system which users can stake their token for additional benefits). mimo’s DAO model will allow PICO holders to propose and decide how the DAO treasury should be spent.
Staking PICO provides three benefits:
- Pool reward voting: Stake and vote for the rewards of different LP pools
- Liquidity incentive: Provide as incentive for liquidity provider
- Protocol fee sharing: Stakers can earn trading fees from the protocol
By having community-driven governance, mimo will bring greater transparency, security, and rewards to all members. The appeal of decentralized governance is the right, given to all PICO holders, to decide how incentives are distributed across liquidity pools.
Liquidity will be provided to providers, projects, and stakeholders with long-term incentives for ecosystem development. Additionally, by introducing the new veToken approach, participants will have the opportunity to stake their PICO for additional benefits. Stay tuned for more information in our upcoming blogs on how these aspects will all come into play.
What’s Next?
We hope you’re as excited as we are by this new model of DEX. We strongly believe it’s both innovative as well as an example of the maturation of the DeFi space. Following this initial announcement, you can expect more detailed information regarding the tokenomics and DAO structure of this new model. We will also be revealing the expected launch timeline in the coming weeks.
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