The Seven Wonders of MITH Cash V2: Day 4 — Triple Threat: MIC V2 Migration, MIB Redemption at 1 MIB = 1 MIC, MIC Rebase to 1 USDT
Day 4 showcases the biggest changes to the MITH Cash protocol. As we have observed over the past month, drastic changes are necessary if we are to return to peg and achieve our goal of becoming Lord of the Stables : One Stable to Rule Them All.
- Core MIC-USDT Pool Migration to Stableswap
- MIC V1 Rebase to MIC V2, so 1 MIC V2 = 1 USDT
- MIB Full Redemption to MIC V2 at 1 MIB = 1 MIC V2
Core MIC-USDT Pool Migration to Stableswap
It is clear from the market action over the last month, that XKY pools are not suitable market makers for stablecoins.
The team believes that migrating MIC-USDT to a CRV.finance MIC-3crv stableswap pool would give MITH Cash the best chance of maintaining peg.
In order to take the best advantage of the Stableswap , it is optimal to carry out the migration to MIC V2 in such a way as to enter the new Curve pool at a 1:1 ratio. We therefore intend to conduct a one-off rebase of MIC, while maintaining value of MIC V1 holders.
MIC V1 Rebase to MIC V2 so 1 MIC V2 = 1 USDT
- All MIC V1 will be exchanged for MIC V2 during a transition time window
- We want to start V2 off right on peg, and so the initial starting ratio in the Stableswap liquidity pool will be 1 USDT : 1 MIC V-2
- The ratio of the exchange between MIC V1 and MIC V2, will be dependent on the 6H TWAP of MIC V1 at 0200/0800/1400/2000 UTC, where the formula is:
Assume 6H TWAP of MIC at 0200 UTC is X
The ratio of conversion between MIC V1 vs V2 will be
1/X MIC V1 : 1 MIC V2
e.g. if the TWAP price of MIC V1 = $0.8 USDT, then the exchange ratio would be 1.25 MIC V1 = 1 MIC V2
- The $ value of everyone’s MIC will remain the same after the rebase. Only the number of tokens held will change. This rebase will necessarily force everyone’s starting point to 1 MIC V2 : 1 USDT
MIB Full Redemption to MIC V2 at 1 MIB = 1 MIC V2
The team intends to honor all debts as obligated to MIB holders from the start of the MITH Cash protocol. MIB holders will be able to exchange all their MIB for MIC V2 at a 1:1 ratio.
In order to ensure staggered repayment just like the Boardroom, the redeemed MIC V2 will be available subject to tax for early withdrawals. The tax structure will be as follows:
- 24 hours — 50% tax
- 48 hours — 40% tax
- 72 hours — 30% tax
- 96 hours — 20% tax
- 120 hours — 10% tax
- Above 120 hours — 0% tax
After migration to V2, we will phase our MIB and do not intend to automatically issue, like V1’s contraction bond purchase, any new Mithril Bonds (MIB) as other mechanisms will be used to maintain the peg. More details will be released in the coming days!