EOL Candidate Proposal: Ionic

Introduction

Ionic is a decentralized non-custodial money market protocol supported by comprehensive security monitoring and failsafe systems. It gives users complete control over their funds by providing the best interest rates on Mode and Base networks. Ionic specializes in yield-bearing assets such as LRTs, LSTs, and yield-bearing stablecoins on top of the core assets like USDC, WETH, etc.

Ionic’s vision is that the future is behind yield-bearing assets and that everyone should be able to access the deepest liquidity to leverage them. This proposal aims to show how Ecosystem-Owned Liquidity (EOL) can use Ionic dApp to maximize the returns for the Mitosis ecosystem by executing various DeFi strategies.

About Ionic

dApp: https://app.ionic.money/

Ionic Landing: https://www.ionic.money/

Documentation: Welcome to Ionic | Ionic Documentation

Twitter: x.com

Ionic Value Proposition

Among the myriad of DeFi applications, money markets have emerged as a standout, and Ionic is poised to lead the pack. Its unique modular architecture and battle-tested codebase position it as the ideal platform for onboarding RWAs, SMBs, and other TradFi lending opportunities on-chain, thereby significantly expanding the Total Addressable Market (TAM).

Currently, Ionic stands as the leading TVL protocol on Mode, supporting all the yield-bearing assets presented on the network and in discussions with all the upcoming ones. This market dominance solidifies Ionic’s position as the go-to Money Market on Mode Network, instilling confidence in its capabilities.

With the current expansion into Base, Ionic is the only money market that currently supports LRTs. Once Mitosis gets to the Base network, Ionic is in a good position for growth and future partnerships.

Earn - additional APY for idle supply

Together with the Supswap (DEX) and Steer (Liquidity Management protocol), Ionic created a unique pool. Users can supply their idle stablecoin collateral into the Steer pool, which is used for stablecoin swaps, creating an additional layer of returns—swap fees on top of the supply APYs.

Leadership team

Ionic is led by seasoned DeFi builders and veteran founders. Ionic benefits from crypto-native founders with real-world experiences.

Rahul Sethuram (Tech Lead at Ionic)

Rahul is an entrepreneur and prolific software developer (smart contracts, scalable distributed systems) who co-founded and operated as CTO of Connext for over six years since 2017. His experience building and scaling one of the most successful cross-chain interoperability projects gives Ionic a huge edge in building a truly cross-chain money market protocol.

Henri Mahal (Project Lead at Ionic)

Henri is a driven founder and investor active in web3 since 2016. Coming from a Marketing and Business Development background, he has helped various web3 teams go to market and scale their projects from 0 to 1 with the R&D firm 0xpragma he helped co-found in 2017. He has a profound understanding of on-chain economies from working with household names such as LiFi, district0x, and PlanetIX, spanning from interoperability to GameFi to SocialFi.

Audit History

Zellic (https://www.zellic.io/) audited our contracts, oracles, and the pools created.

No critical issues were found. The audit uncovered 2 findings of medium impact, 2 of low impact, and 2 of informational.

All the issues were resolved, and recommendations were implemented by the Ionic team.

Detailed report: Audit | Ionic Documentation

Ionic works closely with the risk assessment team - Anthias, which advices on markets and prepared a special dashboard to track a variety of metrics across the protocol: https://app.anthias.xyz/protocols/ionic/ionic_v1_mode/positions

Investors/Fundraising

Ionic did a limited public sale with the S1 launchpad and raised a strategic round including Renzo, Etherfi, Zellic, Quantstamp, Pyth, Redstone, Connext, and Superfluid.

Ionic is currently gearing up for the next round.

Ionic & Mitosis - a Mutual Symbiosis

Ionic aims to maximize capital efficiency on Mode and across the OP Superchain. Partnering with Mitosis will allow for more liquid markets, which will benefit every stakeholder: Mode users, Ionic users, and Mitosis LPs.

Mitosis LPs will get additional benefits by supplying into Ionic, such as a 25% Ionic points boost for any market supply, which creates a “superstack” of points and APYs just for a simple supply. For example, by supplying any LRT into Ionic, Mitosis LPs will get:

x2.5 Ionic points (+25% boost) + 2x LRT points + 2x Mode points + supply APY + underlying LRT APY + EL points

In the future, Mitosis EOL can also be used to supply stablecoins into Ionic for Supply APYs (+Boosted Ionic & Mode points). The increased stablecoin liquidity attracts borrow capital, which will benefit the Mitosis LPs. On top of that, ionUSDC and ionUSDT (cToken representation of the supply balance) can be supplied into the Steer ionUSDC/ionUSDT pool to add exchange fees to the stack of supply returns. The bigger the pool, the higher chance the aggregators will pick up the route, bringing exchange fees to the suppliers, Mitosis LPs will get:

Supply APY + 2.5x Ionic Points (+25% boost) + 2x Mode Points + Swap fees from the ionUSDC/ionUSDT pool

DeFi Lego

Mitosis EOL can use Ionic to further maximize returns in the true nature of DeFi composability - supply any yield-bearing asset, borrow against it, and deploy borrowed capital into another strategy/protocol on Mode Network.

Thanks to the asset’s yield-bearing nature, the loan will technically repay itself while LPs receive additional points for borrowing and the APYs from the deployment of the second strategy.

Conclusion

Both Mitosis and Ionic share the goal of taking asset composability and capital efficiency to the next level in the imminent multi-chain future. As one of the leading protocols of the Mode network, the Ionic team believes that we can contribute greatly to Mitosis’ successful expansion into the promising OP Superchain. Ionic sets itself apart with clearly defined benefits for Mitosis LPs and an uncontested position as the number one lending protocol of Mode. We also look forward to becoming Mitosis’ crucial partner in venturing out to other OP Superchains like Base soon.

89 Likes

@Hikaru Ser, Have you check the audit report? I have checked it. It seems safe from my perspective. But I need your view to look into it. Thanks man. I will wait for your comment in this post.

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Ionic is second cooking :fire:

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Good Candidate! would love to use Ionic with Mitosis

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Good work! I like your proposition.

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Ionic would be a strong partner protocol from Mode.

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gud for me as long u make sure with dis new token integration its safe against exploits… dont wanna see dis happen like sonne experienced.

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we need places to use miweETH so I support this. spin it up.

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Very interesting.
Is it possible to do something similar on Starknet with Nostra or ZkLend?
I think this is complicated because of the Cairo language and wallets specific to L2 Starknet for the moment.

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good canditate :smile: very good job

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will take a second look at Ionic.

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Seems safe looking in a report review.

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I have a couple cons on Ionic. The airdrop they just had was pretty chincy. So community support is pretty low atm. The other con which is far more important Ionic always seems to be at borrowing caps. Not having the option to leverage up on our positions is a serious negative. I’ve personally been using Sturdy and Ironclad for my weETH and I haven’t once been unable to leverage against my positions when I wanted to.

Now if we are getting this deal and also in talks with other dexes, Lending, yield, etc sure we might as well get it up on Ionic as more places to use our liquidity are better then fewer places. But certainly not at the expense of having miweETH on other platforms (I have no idea if this is the case, just in case there is some sort of exclusivity deal involved).

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Yess would be so nice to use miweETH in defi

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nice thing. I agree with

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Nice, thanks. I do agree with the statement about asset composability and capital efficiency of both projects.

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I hope partnering with Ionic will enables us to accumulate Mode points by holding/using miAssets.

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Right now there are no incentives on Mode, not even mode points for miweETH, it would be a game changer for sure. If contracts security is on point, there is nothing to reject about this proposal, a win-win both for Mitosis, Ionic and its users.

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We chose a specific airdrop strategy in conjunction with a leading token economy specialist to ensure stable growth and longevity of the protocol above all else. We are not heavily funded by VCs or investors and are a bootstrapped small team of very passionate people.

Borrow caps are there to secure the protocol and its users from a variety of unforeseen events (ie ezETH depeg), currently, Mode has enough liquidity across DEXes for borrow caps to be at significantly higher levels than before. Any assets can be borrowed by Mitosis LPs. Ionic team is also finalizing a liquidity solution with a key partner to allow for significantly higher caps, which should be going live on or directly before ETHCC.

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more places for miweETH use cases is better for all Mitosians, go for it!

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