This RFC offers to increase the MIM borrow factor to 0.76.
There has been a lot of FUD going on around FTX and Alameda which spilled into FTT price action. I personally don’t agree with it, but it would be neat if Euler allowed traders to express this view in a capital efficient way.
As Spreek pointed out on Twitter, a lot of MIM by Abracadabra is backed by FTT (FTX token):
So if FTT suddenly dropped to 0, MIM could become unbacked as MIM borrowers have no incentive to repay their debts and liquidators can’t sell the FTT backing the MIM loans.
There is in fact a decent MIM shorting market on UwU lend Finance already (about 20mil MIM):
So there is definitely demand.
MIM trades on various CeFi and DeFi exchanges and sees good volumes:
There is a $125mil TVL pool on Curve:
There is also a Chainlink feed which is already implemented on Euler, which makes oracle manipulations quite unlikely:
Given at proven demand on UwU lend for borrowing MIM, good liquidity, pricing feed and opportunities to express FTX-bearish trading views, increasing the borrow factor would be an easy win for Euler to help MIM lenders and shorters meet.