How It Works
The Mint
Mimisbrunnr starts with 0 total supply. Total Supply of MIMIS is increased only when full range Uniswap V3 LP of select pairs are provided to the protocol. When a pair is provided the protocol merges the position with its own and mints an amount of MIMIS equivalent to the liquidity parameter found on the position for the sender. The protocol tracks the amount of liquidity per position as well as the total liquidity supplied to the protocol from all pairs.
Where are my Liquidity Rewards going? - The Stake
The liquidity rewards are now being sent to a specially modified UniswapV3Staker. Users that take their MIMIS and create MIMIS/WETH UniswapV3 LP can stake it here and, if the position is in range, begin earning a portion of these rewards.
A user earns a claim on the current proportion of the reward pool rewards. The proportion is calculated by the MIMIS/Weth inrange liquidity accumulated since staking against the total liquidity accumulated by the staker. Staker v1 just provides a proportion of the total supply given to the staker from mimisbrunnr.
The Unwrap
A user with MIMIS can than unwrap the tokens. The protocol than goes through each position connected to the pool and decreases its liquidity that position by
Since each MIMIS maps 1:1 with liquidity amount is a liquidity. The protocol than runs collect on its position and sends the released tokens to the user. Any fees that were earned by the Mimisbrunnr position are collected by the protocol to be issued to stakers of MIMIS/WETH in an UniswapV3 Staker protocol.