Posted by Dove Mountain on behalf of C.R.E.A.M. Finance
In an earlier forum post Capital Efficiency in mStable it was discussed – and agreed upon by the community – that there’s an opportunity to make mStable more capital efficient by depositing idle assets.
We would like to build a formal protocol-to-protocol working relationship between C.R.E.A.M. Finance (Iron Bank) and mStable, where the Iron Bank services mStable’s idle assets. Currently, the Iron Bank supports mUSD and has plans to add mBTC shortly.
I propose that mStable lend out a percent of the idle mUSD in the mStable Savings Contract (ETH Mainnet) to the Iron Bank.
The mStable Savings Contract currently holds $25.3M mUSD and 131 mBTC. This capital should be put to work to earn more money for holders.
Once idle funds are deposited in the Iron Bank, we will work closely with the Iron Bank yVault strategists to ensure immediate usage of the mUSD (and eventually mBTC).
Safety is a top priority for the Iron Bank.
To illustrate this, here are the security measures the Iron Bank has recently taken: Trail of Bits Audit, 83% DeFi Safety Score, $1.5M bug bounty, and code peer-reviewed by Yearn team. Additionally, I feel it is important to note that no contract from C.R.E.A.M. Finance has ever been compromised / no users funds have been lost.
Snapshot vote - to deposit % of mUSD in mStable Savings Contract to the Iron Bank.