Miticushqui is a Decentralized Monetary authority protocol that can issue branded stablecoins utilizing a volatile member token and a stablecoin asset at a protocol-determined ratio. The word MitiCushqui comes from the Quechua language and means Digital(“Miti”) Money(“Cushqui”). MitiCushqui ($M) is minted by depositing vBTC and USDC at a 20/80 ratio. Each $M is redeemable for 1 USDC as long as the vault supply lasts. The minting ratio can be adjusted to procure sufficient collateral for redemptions, while the underlying assets can be deployed in yield-bearing strategies to attract more users and build reserves to service redemptions if required.
The goal of MitiCushqui is to become a predominantly BTC-backed stablecoin while holding enough reserves to service redemptions in all market conditions. Furthermore, the treasury reserve yields will be paid back to $M holders - which allows users to have a more stable store of wealth to use throughout DeFi
As vBTC appreciates in value over time the surplus will be redeployed back to $M holders. Furthermore, The vBTC used to mint $M will be managed by the Orkan with the objective of securing yields for $M holders in order to attract a long-term user base that utilizes $M as a store of value. The Minter Contract for stablecoins can use different collaterals and member tokens to make backed stablecoins. We plan to position $M as the preferred collateral for further stablecoins while integrating new types of member tokens (Such as Op or Velo)which will increase demand for $M as arbitrage between different stables occurs. We are excited about the new opportunities available with this structure.
In order to have a successful stablecoin market, we require support from the Optimism foundation and other key players building the future of Optimism. The stablecoin issuer protocol has been audited and battle-tested and it comes down to our partners to integrate by creating their own stablecoins and producing incentives for liquidity markets and other DeFi products.
The protocol can be used in a number of ways. With different types of collateral assets and rates, we can explore interesting concepts such as yield-bearing stablecoins, Optimism, ETH and BTC-backed stablecoins with any denomination, and much, much more.
I have developed a working version that is deployed on the FTM networks. In order to bring this product to Optimism the following is required:
→ Enable Bridge for vBTC into OP
→ Allocation for Incentive program for opUSD stablecoin pools
→ Development of production level front end interface & UX