Hello again 
Since my previous proposal had a nice amount of success, I would like to discuss the second main use case that I see for MILK: serving as a collateral for borrowing ADA.
Let us consider the following scenario: you have a certain amount of MILK (let’s say 1,000 tokens), which correspond to a certain amount of ADA (let’s say 2,000 ADA for sake of simplicity). Your MILK tokens are happily staked and you’re earning some fancy token through them, or maybe even ADA itself (if my previous idea has already been implemented), when some juicy NFT is launched, and you need 100 ADA for minting it. Right now the only way of doing it is swapping 50 MILK for 100 ADA, which in the aforementioned scenario bears a hidden cost: by selling 5% of your MILK token, you are actually giving up 5% of your passive income stream for as long as you cannot afford to buy back those 50 tokens back.
So what if there was a better way? Actually, there is: MILK could be used as a collateral for borrowing ADA. In this scenario, you could keep your MILK token staked, thus continuing to earn your rewards, and lock a fraction of them in order to borrow the ADA you need.
Having explained the rationale behind my idea, I will also detail the elements that I believe would constitute an optimal implementation. Again, feel free to offer any kind of constructive criticism about them 
First of all, the lend should be overcollateralized. You should not be able to borrow an amount of ADA larger than 25-50% of the value of your MILK tokens in order to reduce the risk of liquidation. Since liquidating large quantities of token lead to a higher slippage, the threshold could actually be a function of the collateral (like, 50% for 100 ADA or less down to 25% for 10,000 ADA or more). This would also favor the small holders, which is, in my opinion, a good idea.
Secondly, if my previous idea has been implemented (thus, MILK will be used to farm ADA alongside with exotic tokens), those ADA could directly flow to repay the loan, and only once it is repaid, they would resume accumulating in your wallet. This way, you wouldn’t even need to do anything: your tokens would repay your loan for you.
Third point, this would generate another stream of income for MILK holders, because lending ADA wouldn’t be free. There should be an interest, of course, which should be another “dividend” paid to MILK holders.
Fourth (only in case the devs wish to incentivize MuesliSwap users go full degen mode), if you borrow ADA against MILK, while at the same time you are providing liquidity to some pool of the DEX, also the yield from the pool could be used to repay your debt. In this scenario, in order to fully integrate MILK pools with liquidity pools, the various tokens that you earn by staking MILK, instead of being accumulated in your wallet, could be directly sent to the corresponding liquidity pool (with an automatic conversion of 50% into ADA) for adding yield to yield.
Therefore, if all my ideas were implemented, by staking MILK:
- you would earn some exotic token;
- those tokens would be sent to liquidity pools, thus generating a second yield;
- you would also earn ADA (third yield);
- you could borrow more ADA by locking your MILK;
- you could stake those ADA or send them to liquidity pools as well, thus generating a fourth yield stream;
- finally, it would be nice if the tokens locked in the liquidity pools were also staked (I am thinking, for instance, to VyFi that grants you an 18% APY), and those rewards were provided either to liquuidity providers of the AMM or to MILK holders so that regardless of your pool you would be getting a range of different tokens. In both cases, you would have a fifth yield stream.
In conclusion, I think this would be an amazing idea. Hopefully, very lucrative both for the borrowers and for the lenders 
What do you think about it? I would love to know it 
that cannot boost your MILK 
