Summary
This is a proposal for creating a new CNT market to support SUNDAE token for lending, borrowing and collateralization on the Liqwid protocol.
Project and Token Overview
Sundae Labs is the team behind SundaeSwap, a decentralized exchange (DEX) that has been operating on the Cardano blockchain since 2021. As the second-largest DEX on Cardano, SundaeSwap plays a significant role in the ecosystem. In addition to maintaining the DEX, the Sundae Labs team also provides security audits for various Cardano-based projects. The team is led by Pi, a well-known and respected developer in the Cardano community.
Market Reasoning
The token has a strong and engaged user base, supported by a team that has demonstrated a solid track record and consistent ability to deliver over the past three years on mainnet.
Risk Considerations
SUNDAE token is characterized by medium-high market liquidity and historically medium volatility. It benefits from a large, active community, a long track record, and a revenue-generating product.
These factors make SUNDAE a good candidate for integration into the Liqwid protocol, positioning it as a medium-risk asset within the platform.
Suggested SUNDAE Market Parameters
The proposed interest rates would align with those of existing CNTs listed on Liqwid, such as MIN or LQ. For reference, see the MIN market on Liqwid.
Interest rate market parameters:
- BaseRate 0.00%
- utilMultiplier 3.50%
- utilmultiplierjump 20,00%
- Kink rate 80.00%
Income Factor:
The income split is also similar to the others CNTs listed on Liqwid.
- Reserve Factor: 0.0%
- DAO Factor: 10.0%
- LQ stakers: 10.0%
- Market suppliers: 80.0%
The proposed SUNDAE risk parameters are:
- Collateral factor (maxLTV): 39.9%
- Liquidation threshold: 40%
- Liquidation discount: 15%
The supply cap for SUNDAE will be set to an amount equivalent to $1 million (based on the token price at the time of its listing on Liqwid). There will be a 90% borrow cap.
SUNDAE tokens will be enabled as collateral, allowing users to borrow any CNT supported assets and wanchain stablecoins on the Liqwid protocol.
SUNDAE can be borrowed from loan having ADA, LQ or CNT stablecoins as collateral.
Specification
The Liqwid Labs developers have already completed the technical requirements to list new tokens. Following this on-chain governance vote, the team will begin SUNDAE integration immediately.
Conclusion
The Core Team recommends the adoption of this proposal and to add SUNDAE as a token for lending, borrowing and collateralization on Liqwid with the proposed market parameters.
- Do you support this listing proposal for SUNDAE?
- Do you reject this listing proposal for SUNDAE?