Summary
This is a proposal for creating a new liquidity market to support PayPal’s PYUSD stablecoin token for lending and borrowing on the Liqwid protocol via the Wanchain bridge.
https://www.coingecko.com/en/coins/paypal-usd
https://defillama.com/stablecoin/paypal-usd
Project & Token Overview
PayPal USD is designed to maintain a stable $1 USD value. It’s backed by dollar deposits, US treasuries, and cash equivalents.
Users can buy, sell, hold, and transfer it directly from the PayPal app.
PYUSD Market Reasoning
USD stablecoin markets are the most utilized and high volume markets in the Liqwid protocol. PayPal is a large payments and finance business entering web3 with PYUSD stablecoin.
PayPal USD has quickly grown to 859M Circulating Supply since launching 1.5 years ago with most supply deposited on Ethereum, Berachain and Solana. Wanchain-Cardano Bridge supports 2 of these 3 networks.
Risk Considerations
Bridging risks exists. To mitigate this PYUSD will receive collateral power only against other Wanchain bridged assets.
Suggested PYUSD Market Parameters
PYUSD Market proposed interest rates parameters are the same as the other stablecoins listed on Liqwid, such as wanUSDC or USDM.
Interest rate market parameters:
BaseRate 5.00%
utilMultiplier 4.00%
utilmultiplierjump 775.00%
Kink rate 90.00%
Risk Parameters
LiquidationLTV Threshold: 80.00%
MaxLTV: 79.90%
Liquidation Penalty: 10.00%
Liquidation Profitability:11.11%
Specifications
Liqwid Labs developers have completed the necessary technical requirements for deploying a Wanchain bridged PYUSD market.
Conclusion
The Core Team strongly recommends the adoption of this proposal to add support for a Wanchain bridged PYUSD market for lending and borrowing on Liqwid.
Do you support this proposal?
- Yes
- No