Skip to main content

Core mechanics

We might add some actual technical explanations of how our contracts work here later on if the market wants it, but for now we will just cover the overall flow of the protocol

There are a few components to the IMF protocol that work together to create an autonomous business structure with incentives and revenue for all users

The core flow of the protocol is:

  1. User deposits meme collateral and borrows $MONEY.
  2. User then can use $MONEY for:
    • a. Sell $MONEY for anything they wish like a new lambo
    • b. Sell $MONEY on secondary markets for more memes or other crypto
    • c. LP $MONEY with their meme collateral of choice in our pools
  3. Borrowers and LPs get $IMF emissions and can:
    • a. Play the IMF slow burn game, to receive protocol revenue.
    • b. Sell it for more memes or lambos

CDPs

At launch, the IMF will accept the following collateral options to borrow $MONEY:

  • PEPE
  • MOG
  • BITCOIN

Currently, the maximum you can borrow against all collateral is 69% LTV (Loan-to-Value). When you deposit your meme collateral and borrow $MONEY, you will accrue interest on the debt. Interest is accrued at a variable rate based on our Interest Rate Model, detailed in the $MONEY tokenomics.

You can access your meme collateral once you repay the total debt owed on the CDP (Collateralized Debt Position).

You can manage your CDP in 4 ways:

  1. Add more collateral (to improve loan health and increase the borrow limit).
  2. Repay partial debt (to improve loan health).
  3. Borrow more debt (up to the max LTV).
  4. Withdraw collateral (up to the max LTV).

Liquidations​

If the value of your collateral decreases and your LTV ratio reaches 69%, you will be liquidated, and your meme collateral will be used to repay the debt. In the event of liquidation, you will have no meme collateral to withdraw.

The LTV will always change based on the price of your underlying meme collateral, as the debt price is always pegged at $6.90 per $MONEY in the CDP.

LPs​

At launch the IMF will have the following Liquidity Pools:

  • PEPE/MONEY
  • MOG/MONEY
  • BITCOIN/MONEY
  • IMF/MONEY

These are completely standard Uni V3 Pools.

If you provide liquidity to any of the pools, you will receive your share of the trading fees that happen within the pools.