MIP 12: Ecosystem Investment - Sumer Money



We present this MIP to propose an investment of $200,000 USD worth of MTRG into Sumer Money, an ecosystem project closely associated with Meter, aimed at fostering growth and increased utility across the Meter network.

This strategic investment is aimed to primarily capitalize on the Sumer Money’s ability to grant exposure to the Meter Ecosystem – exposure to capital, user base and decentralized applications – driving mutual benefits including ecosystem expansion, user base growth, and increased transaction volumes.

The investment will support Sumer Money in achieving its development milestones, which are aligned with Meter.io’s long-term strategic goals of innovation, market penetration, and sustainability. The investment will be allocated towards liquidity buildup efforts.

This proposal outlines the investment details, expected outcomes, risk assessment, and the governance process for proposal approval.

We believe this investment will not only strengthen Sumer Money’s position within our ecosystem but also contribute significantly to Meter.io’s broader objectives of network adoption.

Sumer Money - Creating a Fungible Liquidity Layer

Sumer is a Cross-chain Synthetic Assets Money Market Protocol, deployed simultaneously on a network of supported chains. Sumer enables creation of SuTokens (Synthetic Assets of USD, ETH and BTC) to provide a credit card-like experience to users.

As a DeFi user, you can deposit your assets (ETH, BTC, USDC, USDT etc.) on the native blockchain in the lending and borrowing market to mint synthetic assets (SuUSD, SuETH, SuBTC) that are fungible across the network of all supported blockchains. Cross-chain transfers are secured by Chainlink CCIP and LayerZero.

With growing Liquid Staking Derivatives and yield bearing stablecoins market, Sumer is also well-positioned to create a liquidity fungible layer with SuTokens encompassing liquid staking derivatives and yield-bearing stablecoins as collateral in the multichain DeFI ecosystem.

Sumer is currently deployed on Meter, Arbitrum and Base with a TVL of over 2.5 Mill USD on Meter Network.

Investment Details

Amount and Terms

Meter will invest an amount of $200K USD worth of MTRG at the price in the latest sale round of Sumer. The Meter Ecosystem will get SUMER tokens at TGE.

Use of Funds

Sumer Money plans to allocate the investment to bootstrap liquidity across 2 major verticals

  1. Bootstrap SuToken (suUSD, suETH) liquidity on supported networks

Sumer is currently live on Meter, Base and Arbitrum. Sumer is looking to partner with Major DEXes on Base, Arbitrum and other networks to bootstrap SuToken liquidity. Sumer will expand further to additional networks through the next year.

Network Partner DEX Partnership Confirmed? TVL (Million USD)
Meter Voltswap Yes 6.26
Base Aerodrome Yes 132.15
Arbitrum Camelot Ongoing Discussion 117.71
Arbitrum Sparta Ongoing Discussion 11.57
  1. Incentivize deposits of Liquid Staking Derivatives (primarily ETH), Restaking and Yield bearing Stablecoins on Sumer

Sumer will utilize the investment to partner with and incentivize LST, RST, and yield bearing stablecoins deposits on Sumer.

Burn Rate

Sumer will utilize the investment over the next 1.5-2 years.

Rationale for the Investment

We have historically defined 4 key objective criteria that help drive growth and adoption of Meter

Network as a public goods platform - Ability to generate transaction volume, Ability to attract TVL, Ability to attract new users, Fill gap in current Meter ecosystem needs.

This investment in Sumer helps Meter meet the criteria in both tangible and intangible ways.

  1. Design Principles of Sumer Money and natural synergies

Sumer, by design, will feature across the major blockchain networks supporting native assets in the money market and enabling minting synthetic SuTokens. SuTokens enable decentralized applications and users with omni-chain asset abstraction thereby reducing liquidity fragmentation and enhancing composability across all supported blockchains.

Sumer also has a lot of potential to partner with Liquid Staking Derivative Protocols, Restaking Protocols and yield bearing stablecoin protocols.

Expansion across chains gives Sumer exposure to chain user like on Base and Arbitrum

Major DEX integrations across chains gives Sumer exposure to sophisticated DeFI users like partnership with Aerodrome on Base (confirmed) and Camelot/ Sparta DEX on Arbitrum (ongoing discussions)

Partnership with major bridging protocols like Chainlink CCIP and LayerZero

All these natural synergies give Meter the much needed attention to ensure network adoption

  1. Exposure to MTRG asset to users across chain

Utilizing MTRG as reward token until TGE provides MTRG with the exposure to sophisticated DeFI users. This move has the potential to increase MTRG user base, increase MTRG trading volume while introducing minimal selling pressure.

For e.g.: An incentive of around 4K USD worth of MTRG weekly distributed across multiple DEXes and multiple chains (Aerodrome on Base, Camelot and Sparta on Arbitrum) minimizes the price impact and selling pressure. Lower TVL pools on these chains also increases the potential for the users to use Meter Network.

  1. Sumer Airdrop to MTRG Holders

All the Sumer Tokens received from this investment will be airdropped to MTRG Holders engaged in Node Operations, Staking (liquid and non-liquid) and Liquidity Provisioning in DeFI Applications along with PASS Token Holders. The Airdrop is subject to the vesting requirements defined at the Sumer token launch. The snapshot date will be as communicated by Sumer.

Risk Assessment

While there are definitely Market Risks (Volatility, competitive landscape, adoption rate) related to the investment, the investment primarily aims to garner adoption for Sumer and capitalize on natural synergies with wider DeFI ecosystem and blockchains.

The execution risk is limited due to the team operating Sumer. It is the same team behind Meter.

Sumer does carry security risks, as with any smart contract protocol. The team has conducted 2 audits to mitigate the security risks and is planning for another round of audit.

Governance and Voting Process

Forum Discussion

Period of 7 days starting 10 February 2024 00:00 UTC until 17 February 2024 00:00 UTC.

Governance Proposal Voting

Period of 2 days starting 17 February 2024 00:00 UTC to 19 February 2024 00:00 UTC.

Users can vote with MTRG, staked MTRG, stMTRG and wstMTRG. The proposal will pass when it achieves a majority vote. There is no quorum requirement.

This topic is recreated. Original creation date was February, 2024. The corresponding governance proposal can be found here - Snapshot