Proposal: Integrate MyUSD as Collateral on Liqwid Finance
Introduction
This proposal advocates integrating MyUSD, as a collateral option on Liqwid Finance. Since inception, MyUSD has proven to be the most stable stablecoin on the Cardano blockchain consistently maintaining its peg to the US Dollar.
Created by the Mynth team; MyUSD is currently backed by USDC and USDT on Tron and Polygon networks. The accessibility of the MyUSD minting / redemption mechanism on the Mynth platform provides all users the ability to take advantage of the arbitrage during minor price deviations in the MyUSD price creating its stable peg.
MyUSD Collateral Advantages
Loan Safety: Collateral stability is critical to loan borrowing. MyUSD will give users confidence in their loan health factor and decrease the risk of liquidations. It has proven it’s stability maintaining its peg to the US Dollar since its creation and will give borrowers confidence in their positions.
Increased Liquidity MyUSD minting / redemption mechanism is currently integrated with the Tron network. Mynth team will be rolling out new chains in the future that will also be able to utilize the minting / redemption mechanism including Polygon, Arbitrum and Solana This will increase MyUSD liquidity when users bridge their USDC / USDT to Cardano and provide Liqwid the unique opportunity to acquire liquidity from these other chains.
First Mover: MyUSD is currently not available as collateral on any other lending protocols. As users come from other chains to Cardano, they will look for borrowing / lending protocols with MyUSD integrations as they mint MyUSD from their USDC / USDT holdings. These users also expect stablecoin stability; MyUSD provides that stability.
Conclusion
Integrating MyUSD as collateral on Liqwid Finance presents a significant opportunity for Liqwid to be the first to integrate Cardano’s most stable stablecoin. As the Mynth team integrates more chains into their protocol, more liquidity will come to MyUSD which will need a place to go in the Cardano DeFi ecosystem. MyUSD will give Liqwid exposure to cross chain liquidity and provide users the confidence in their loan collateral.
Mynth is building a platform to natively swap tokens from different chains including Cardano, Solana, Arbitrum, and Bitcoin. The Mynth token is their utility token for utilizing the multi-chain protocol swaps. The proposal is only in reference to MyUSD.
MyUSD is the stablecoin the team developed. Information regarding MyUSD can be found on the Mynth website linked above.
MyUSD:
Liquidity: 273,772 ADA
Market Cap: 480.385 ADA ($223,671)
Trading Volume: 4,651 ADA
Liquidity is low right now but to me the more important factor is it’s stability of maintaining its $1 peg. MyUSD has been atttacked several times and re-gained its peg each time causing loss to the attackers.
Currently to my knowledge, MyUSD can only be utilized in the Mynth staking platform (https://www.mynth.ai/staking) yielding 20% yield to chameleon NFT holders and 5% otherwise. This is what spurred the proposal. I’m looking for ways to utilize MyUSD.
You need to explain the technical and functional details of how Mynth system operates including any bridges it relies on in about 10x more detail if you are serious about this proposal. Your initial proposal and your response to Florian simply is not nearly enough technical detail. How does any bridge Mynth utilize compare to Wanchain or Rosen bridges, why should Liqwid community take on additional risk to support it given how low onchain liquidity is compared to other stablecoins including recently launched USDM? Along with providing a lot more technical information these are the types of answers you will need to thoroughly answer both here and in the Liqwid Discord governance discussion channel if you want to gain sufficient community support for this proposal.
Its incredible myusd peg resistance! But i agree with DC. I’ve tried to dig information but i didn’t found much. Would love to support but we need to understand the mechanisms behind.