Foreword: Meter issued a bond token PASS worth 425w due to the hacking incident, but at present these tokens only rely on the verbal commitment of the Meter foundation as a guarantee, we think this is a very web2 behavior, so we want to These bond tokens are provided with certain guarantees in the form of UMA’s KPI synthetic assets to ensure their true value.
Purpose:
Deploy UMA on the Meter chain
UMA provides a KPI synthetic asset solution on the Meter chain, which uses a certain amount of MTRG as collateral to issue new PASS tokens to replace the original bonds.
New PASS Token Requirements:
New PASS tokens will be issued in the form of KPI synthetic assets. If the mature assets have not been redeemed, a new bond plan will be issued until the bonds are fully redeemed. (The Meter Foundation 100% guarantees the bond value)
Mortgage assets: 10w MTRG tokens (insufficient mortgage, replenish at any time)
Redemption Status: Denominated in USD, paid by MTRG
This is a really interesting proposal and a good use case for UMA’s KPI options. I have some familiarity with the meter chain and was sorry to hear of your recent hack.
There are a few things I’m not clear on.
Can I firstly just check that Meter is EVM compatible? Are there any ideosyncracies we should be aware of given that (as I understand) it is an L1 rather than an Ethereum side-chain.
And on the mechanics…the idea would be to have a KPI option that is collaterised in an amount of $MTRG that has a current market value of $4.4m, that is unlocked based on TVL metrics. Would this be at a particular date (so if TVL was $500m on x date they would receive 50%) or would they be able to be redeemed in proportion once the metric is hit? (so if it first hits $100m on 1/1/23, 10% is unlocked, then hits $300m on 1/2/23, another 20% would be unlocked etc)?
I am curious, given what I know of meter, why you have chosen to denominate in dollars, rather than $MTR.
Yes, there is a good chance that the bonds issued by Meter will actually be a significant case for UMA’s KPI option.And Meter also now needs UMA’s KPI option to collateralize the assets for the bonds as well.
For the few issues you mentioned.
Meter is Ethereum compatible at the RPC level. You could treat it as an Ethereum side chain actually.
The idea is to use MTRG as collateral to redeem based on TVL metrics and on a specific date they will be able to redeem on a pro-rata basis if once the metrics are met.
For example, on March 1, 2022, if Meter’s TVL can reach $100 million, it will allow 10% of the PASS tokens to be redeemed for MTRG (at the current market price)
Is there a canonical message bridge between Ethereum and Meter? Not a showstopper if there isn’t but it might be good to use that for the UMA implementation if it exists.
It took me a while to understand this proposal. Post the definition of some terms here for others if they are in the same position:
UMA: Universal Market Access, a synthetic-asset protocol that allows anyone to recreate traditional financial products, exotic crypto-based products, and more. Through UMA, two counterparties come together to create a financial contract that is secured through economic incentives (collateral), and enforced through smart contracts on the blockchain.
KPI: Key Performance Indicator (KPI) Options are synthetic tokens that will pay out more rewards if a project’s KPI reaches predetermined targets before a given expiry date. Every KPI Option holder has an incentive to improve that KPI because their option will be worth more. This is intended to align individual token holder interests with the collective interests of the protocol.