Add $IAG market to the Liqwid Protocol

[itzDanny]

Who are IAGON?
Iagon is a leading technology company based in Norway that is developing a decentralised storage & compute protocol. Incorporating advanced machine learning algorithms in conjunction with blockchain technology to provide secure, scalable, compliant and cost-effective data storage and processing which can be customised to comply with fast-moving compliance regulations.

Proposal As a community we would like to propose allowing $IAG as an available asset on Liqwid, this will result in an extremely large and positive impact for the Liqwid protocol and Liqwid users based upon the following reasons:

Increased Protocol Audience Exposure - Iagon has an extremely strong & large international community around them, with over 14.1k followers on Twitter & over 8,500 token holders, $IAG is currently situated in the top 10 projects in Cardano by Market Cap, this community is unique as it consists of a joint audience of both Cardano & Ethereum users, which were recently migrated to Cardano when IAGON decided to utilise Cardano as it’s blockchain of choice.

• Liqwid Protocol will benefit from exposure to this unique extended audience.

• Liqwid Protocol will also benefit from increased volume.

• Liqwid Users will also have increased borrowing & lending opportunities as a result of the above.

• Liqwid Statistics & Marketing will benefit from all of the above.

The addition of $IAG as an asset class will allow for more Cardano community members to enhance a network of storage and in future compute. The ability to borrow $IAG and run nodes while earning rewards which can be of additional benefit to the protocol of both Liqwid and IAG sustainability together as one.

Remaining cautious and to ensure the protocol does not take on any bad debt $IAG’s proposed risk parameter’s match those proposed for WMT’s use as shown below(this can of course changed with a future proposal):

Do you support an $IAG market on liqwid?

• Yes
• No

Resources:
Iagon Blog - https://blog.iagon.com
Iagon Roadmap - Iagon Roadmap 2023-2025
Iagon European Patent - [EPO - European publication server ](https://European Patent)

[mojo]

What would be proposed market parameters for listing WMT?

[FlorianVolery]

@itzDanny

IAGON

As part of any assets being listed on Liqwid, important is the price volatility (stability). Looking at IAGON, the recent pump seems linked to its test version of the IAGON storage node.

I would vote yes for a listing as a borrowed assets (same as WMT, 0% collateral), but the current IAG liquidity is currently too low for a listing as a collateral.

[itzDanny]

I had originally proposed IAG as collateral with risk parameters matching LQ proposal but due to community input in discord edited proposal to borrowable asset only

Liqwid only has around 350k ada more liquidity than IAG as per taptools but LQ is considered as collateral with reduced max LTV for example.(see below image)

Is this not something that can be considered for IAG and other CNT’s?

[ItsDavidd]

Hey @FlorianVolery I would also like to point out IAGON have an extremely active liquidity programme that is being run and contributing to increased liquidity at a faster rate.

Approximately 40,800 ADA is added to the liquidity each month as part of just the stake pool reward offering, this is without other token holders providing liquidity too as part of the reward incentive offered.

Source: (I cannot post links but this is explained further in the IAGON Blog titled ’ Iagon’s Liquidity Reward Program Explained’)

From my knowledge I have seen the liquidity increase by over 100% in under 4 weeks. If we were to estimate this on a projected basis with future growth in mind, which we should account for as this governance vote is ‘point in time’ at a time when growth for IAGON is undoubtable. In the next two months I believe this would be at least 3,200,000 ₳ which when in comparison with all other Cardano tokens, will place $IAG at 13th position or higher.

In comparison to Liqwid this is roughly 58% more liquidity when accounting future growth estimated by current growth over this period. Currently $IAG has liquidity just 17.9% below Liqwid whilst holding price support at above 0.20 for a consistent 24 days inclusive and counting after the project has reached testnet phase. I feel we should take into account these factors also, I completely understand why this was raised as a doubt.

[FlorianVolery]

Summary

This is a proposal for creating a new liquidity market to support Iagon (IAG token) for lending and borrowing on the Liqwid protocol.

Project and Token Overview
Iagon aims to build a marketplace for decentralized storage and computing resources. The first version of the protocol will implement a storage marketplace, in order to make the process of joining the shared storage economy simple and transparent for everyone. The protocol will allow storage providers to earn rewards by trading their excess storage to resource consumers on a marketplace at a transparent price while ensuring data privacy, security, and accessibility.

In future versions of the protocol, Iagon will also carry out computational processes in a secure and user-friendly manner. Thus, we envision a future where Iagon revolutionizes the cloud storage and computing markets by offering a decentralized grid for storage and processing. By joining unused computing resources from data centers, computers, and other devices, Iagon will create a decentralized computer able to compete with industry leaders.

IAG token is a Cardano native token and is traded across all CEX and DEX platform.

Protocol information: Iagon's decentralized cloud protocol documentation

Token information: Iagon Price: IAG Live Price Chart, Market Cap & News Today | CoinGecko

Market Reasoning

The IAG token is listed on many CEX/DEX, and numerous external parties engage in arbitrage between these platforms. This suggests that in the event IAG tokens are sold on a DEX as part of a liquidation process following a defaulting loan where IAG serves as collateral, we are confident that liquidators would encounter sufficient liquidity and experience low slippage due to these arbitrageurs. Therefore, we propose to add the IAG token as eligible collateral on Liqwid.

Risk Considerations

The project has not yet fully deployed its marketplace for decentralized storage and computing resources. The project has many promises (https://docs.iagon.com/docs/documentation/roadmap)

but is still in its infancy, which led to a conservative approach regarding its maximum authorized collateral factor.

Suggested Market Parameters

The proposed IAG interest rate algorithm parameters are:

• BaseRate 3.00%
• utilMultiplier 40.00%
• utilmultiplierjump 600.00%
• Kink rate 65.00%

These are the same parameters as AGIX, WMT or MIN.

Income Factor: 20.00% (80% of the interests paid by the borrowers are given to the suppliers).

The remaining part is split as following:

• Reserve Factor: 0.00%
• DAO Factor: 10.00%
• LQ stakers: 10.00%

The proposed IAG token risk parameters are:

• Collateral factor ( maxLTV): 39.95%
• Liquidation threshold: 40%
• Liquidation discount: 15%

The supply cap for IAG will be set to $1.00M and a corresponding number of tokens will be calculated at the Liqwid’s listing date to match this value. IAG token borrow cap will be set to 25% of the total IAG supplied.

Specifications

Liqwid Labs developers have already fulfilled the technical requirements for listing any tokens. Following this assessment, the team will proceed with the preparation work for listing IAG, which includes: 1) testing the proposed interest rate model, 2) finalizing off-chain updates to support loans with multiple collateral assets, and 3) configuring the oracle price feed.

Conclusion

The Core Team recommends the adoption of this proposal and to add IAG as a token for lending and borrowing on Liqwid with the proposed market parameters.