Mimo Governance

What is Parallel Protocol?

Parallel is a decentralized protocol issuing stablecoins, the € stablecoin (PAR) and the $ stablecoin (paUSD), across Ethereum, Polygon, and Fantom blockchains. These stablecoins are decentralized, non-custodial, and collateral-backed FIAT stablecoins. Key aspects of Parallel Protocol include:

• Decentralized Governance: Parallel Protocol operates as a DAO-governed protocol. Changes are proposed and voted upon using vMIMO, obtained by staking MIMO governance tokens.
• Audited and Secure: The protocol has undergone audits and is completely open source, allowing interaction via UI clients or directly with smart contracts.
• Asset and Tools for Market Cycles: The KUMA Protocol offers tokenized real-world assets, providing users access to traditional assets in a DeFi-compatible manner for diversified yield opportunities.

How Does Parallel Work?

The core functionality of Parallel Protocol revolves around its stablecoins, PAR and paUSD, allowing users to leverage their assets without selling. Key features include:

• PAR and paUSD: These stablecoins are pegged to Euro and USD respectively, backed by collateralized debt positions (CDPs) via the Mimo Protocol.
• Collateralized Vaults: Users deposit collateral to create Vaults, from which they can borrow PAR/paUSD, ensuring over-collateralization for stability.
• Borrowing and Repayment: Borrowers pay an origination fee for creating debt, with borrowing fees accruing over time. They can repay debt with PAR/paUSD, redeemable for their collateral.

PAR and paUSD

PAR and paUSD are stablecoins issued by the Parallel Protocol, designed to provide stability and utility within the decentralized finance (DeFi) ecosystem. PAR is pegged to the Euro (€), while paUSD is pegged to the US Dollar ($), offering users the benefits of stable value without relying on traditional financial institutions. These stablecoins are decentralized and non-custodial, meaning users have full control over their funds without the need for intermediaries.

PAR and paUSD are created through collateralized debt positions (CDPs) via the Mimo Protocol. Users deposit accepted tokens, such as WETH, WBTC, or USDC, as collateral in Vaults and receive a loan in return. This process ensures that each stablecoin is backed by a corresponding amount of collateral, providing stability and security.

Both PAR and paUSD can be transferred and used like any other ERC20 token, facilitating seamless transactions within the crypto ecosystem. Additionally, borrowers can redeem and burn PAR/paUSD to repay their debt and withdraw their collateral, ensuring flexibility and liquidity for users. Overall, PAR and paUSD serve as essential components of the Parallel Protocol, offering stability and utility for DeFi participants.

Governance and Tokenomics

Parallel Protocol's governance system relies on the participation of MIMO token holders, who utilize vMIMO to wield voting power. To enhance engagement and influence, token holders can lock their MIMO for different durations, receiving non-transferable vMIMO in return, thereby shaping the direction of governance decisions. Governance proposals undergo a thorough process, beginning with community discussion across platforms such as Governance Forum, Telegram, and Discord.

Once proposals are crafted and refined through community input, they proceed to snapshot voting, where off-chain votes are cast. Proposals achieving majority support then move to execution, overseen by the DAO Multisig. This comprehensive governance framework ensures transparency, community involvement, and effective decision-making within the Parallel ecosystem, fostering a decentralized and inclusive approach to protocol management.

Project Development

Arrakis PALM, an initiative spearheaded by the Parallel DAO, introduces a pioneering approach to onchain market making on Polygon PoS. Approved through the MGP-20 proposal, this endeavor aims to revolutionize liquidity provision by deploying MIMO Protocol Owned Liquidity (POL) via Arrakis Finance's PALM mechanism. Historically, onchain MIMO liquidity has centered around Balancer, particularly the MIMO/PAR and MIMO/wETH pools. While Balancer's model offered benefits like minimized impermanent loss and steady yields, it posed challenges such as dependence on Protocol Owned Liquidity (PoL) and reduced capital efficiency. To diversify liquidity and address these challenges, the proposal integrates Arrakis Finance and its PALM tool.

Arrakis PALM, or Protocol Automated Liquidity Management, leverages algorithmic rebalancing strategies on Uniswap V3 to manage liquidity efficiently. By tapping into organic trading volumes, PALM establishes a self-sustaining liquidity model without external incentives, optimizing capital efficiency and reducing slippage for users. This initiative reflects the Parallel DAO's commitment to innovation, sustainability, and community-centric development, setting a precedent for decentralized liquidity solutions in the DeFi space.

Mimo Governance Price Analysis

As of November 24 2024 Mimo Governance has a marketcap of $2.1M. This is {{percentagefromath}} from its all time high of $0.431736. In terms of its tokenomics, there's a total supply of 802M with 70% currently outstanding. Keep in mind Mimo Governance has a fully diluted value of $3M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.

Summarized in part by ChatGPT 4 and Claude