Create new mTBILL/FRAX Fraxlend Pair

Summary

Propose the creation of a new Fraxlend pair on the Ethereum mainnet: mTBILL/FRAX.

Details

Fraxlend Pair Name: mTBILL/FRAX
Chain: Ethereum Mainnet
Max Authorized Allocation: 2,000,000 FRAX
Max Loan-to-Value (LTV): To be decided by the development team
IRM: To be decided by the development team

Background and Motivation

Midas aims to make investing accessible, global, and permissionless by bringing institutional-grade assets to the open web. The platform provides secure, compliant, and widely available investment opportunities.

Founders and Team

Dennis Dinkelmeyer (Co-Founder & CEO): Former Goldman Sachs and Capital Group professional with extensive experience in Traditional Finance.

Fabrice Grinda (Co-Founder & Executive Chairman): Renowned entrepreneur and investor, co-founder of OLX, and investor in over 1,000 startups via FJ Labs.

The Midas team has a strong background in Crypto, DeFi, Finance, and Tech, with experience from companies like Maker, Ondo Finance, Solaris Bank, Criteo, and Pegaki.

Midas issues several yield-bearing tokens on the Ethereum blockchain, such as mTBILL. mTBILL offers tokenized exposure to short-duration U.S. Treasury Bills, providing a low-risk, stable yield to its holders. mTBILL is an ERC-20 token that auto-compounds returns, making it ideal for use as collateral. By creating the mTBILL/FRAX Fraxlend pair, mTBILL users will be able to borrow FRAX, allowing them to leverage their positions for enhanced returns.

For Frax, the integration of mTBILL offers a stable and sustainable revenue stream from a class of assets known to be one of the safest.

The development team will determine the appropriate LTV.

Links and Contracts

Website: https://midas.app/mtbill

Docs: mTBILL Docs

Twitter: @MidasRWA

Telegram: @midasrwa

mTBILL Token: 0xdd629e5241cbc5919847783e6c96b2de4754e438

Ankura Oracle: 0x056339C044055819E8Db84E71f5f2E1F536b2E5b

Instant Redemption Vault: 0x569D7dccBF6923350521ecBC28A555A500c4f0Ec

Instant redemption Example: 0xb350538f097c10506b180cd43b13e25b831e7b7db1929e356e25b9c9a8484406

Risks

The collateral supporting mTBILL consists of high-quality, low-risk assets aimed at ensuring stability and security for investors. The main eligible collateral includes short-term U.S. Treasury Bills and funds that invest in these Treasury Bills. These assets are selected for their liquidity and strong credit quality, providing a stable and predictable return.

To ensure security and compliance, all eligible collateral is independently verified by a third-party security agent, Ankura Trust. This agent ensures that the assets adhere to strict criteria and are properly managed at all times. They also conduct ongoing monitoring and provide daily attestations to confirm that the assets meet predefined standards, ensuring transparency and investor protection, as detailed in the Bankruptcy Remoteness section of the documentation.

Midas partners exclusively with high-quality institutions to reduce counterparty risk.

Liquidity Profile

mTBILL offers instant atomic redemptions in USDC, ensuring immediate liquidity, as well as USDC redemptions that are processed within two business days. This ease of redemption makes mTBILL suitable for use in Fraxlend.

Additionally, mTBILL is a permissionless token that can be liquidated without friction, ensuring smooth operations and removing the risk of bad debt.

mTBILL’s price oracle is updated daily and requires both Midas and Ankura Trust (verification agent) to approve the update before it’s propagated on-chain, removing centralization. Midas and Ankura ensure that the mTBILL value accurately reflects the portfolio, bolstering trust and transparency for Fraxlend users and the broader DeFi ecosystem.

Why Adding mTBILL to Fraxlend is Beneficial

The addition of mTBILL to Fraxlend provides leverage opportunities for its holders while offering a safe stream of revenue to Frax.

Voting

  • For: Approve the creation of the mTBILL/FRAX Fraxlend pair on Ethereum Mainnet with the specified max authorized allocation and allow the development team to decide the LTV.
  • Against: Do not approve the creation of the new Fraxlend pair.
1 Like

Thanks for submitting the proposal!

I’m a bit worried that this Fraxlend pair won’t end up attracting any lenders because the borrowing rate should top off at the mTBILL rate (currently 4.78%) which is currently lower than the sFRAX rate (currently 5.68%).

I haven’t done a ton of research into mBASIS but based on the redemption timelines and guarantees, it appears to be a more intriguing Fraxlend pair and Frax AMO.

Some mTBILL holders have shown interest in leveraging their positions, highlighting a meaningful use case for Fraxlend.

Good point on mBASIS—we’ll look into submitting a separate proposal for that asset. Thanks for the suggestion!

1 Like

I can see that access is restricted in the US and some other unnamed jurisdictions … presumably this won’t be an issue for Fraxtal end users?