Proposal Overview
This proposal aims to add DJED and iUSD as collateral on Liqwid, allowing users to borrow Cardano Native Tokens (CNT). Additionally, these stablecoins could be borrowed by using other CNTs supplied as collateral.
This proposal is also applicable to USDM once being listed on Liqwid with similar parameters to DJED.
Market Reasoning
Over the past year, DJED and iUSD have seen significant usage on Liqwid, indicating strong demand and utility. We are confident that the Liqwid protocol can safely handle the increased demand that will arise from CNT being used as collateral to borrow additional stablecoins.
Risk Considerations
The stability and security of these stablecoins are well-proven, making them ideal for lending and borrowing on Liqwid.
The reliability of these markets has been demonstrated by liquidators successfully redeeming assets and mitigating potential defaulting loans.
Specifications
Liqwid Labs developers have completed the necessary technical requirements for adding new tokens as collateral. The team will proceed with finalizing the off-chain updates to support loans with multiple collateral assets and configuring the on-chain market modifications needed to deploy this proposal.
Conclusion
The Core Team strongly recommends the adoption of this proposal to add DJED, iUSD and USDM for lending and borrowing on Liqwid, in alignment with the current market parameters.
- Yes, I support this proposal.
- No, I do support this proposal.
Note: The potential inclusion of BTC and ETH as Wanchain-bridged tokens for lending and borrowing will further enhance the platform’s versatility and utility.
With these upcoming changes, the market offering on Liqwid will be structured as follows:
- Wanchain-bridged assets will be segregated from the other CNT markets.
- CNT stablecoins could be used as collateral to borrow any Wanchain-bridged stablecoins.
| Collateral tokens | Debt tokens |
|---|---|
| ADA, LQ | All tokens (except OPTIM, only used as collateral to borrow ADA) |
| All tokens | ADA |
| DAI, USDC, USDT 1) | Any Wanchain-bridged tokens |
| ETH, BTC 1) | Any Wanchain-bridged tokens |
| CNT Stablecoins (DJED, iUSD, + soon USDM) | All CNT, any Wanchain-bridged tokens |
| All CNT (except ADA, LQ, CNT Stablecoins) | ADA, CNT Stablecoins |
Comments:
- (1) Wanchain is currently performing an additional audit on their bridge technology, and depending on the results, we may consider adding the option to borrow CNT backed by Wanchain-bridged tokens.