Add support for a WMTX market on the Liqwid protocol

New Markets
1

Summary
This is a proposal for creating a new CNT market to support WMTX token for lending, borrowing and collateralization on the Liqwid protocol. The Liqwid protocol previously supported WMT and completed a delisting for security purposes prior to their token migration to WMTX.

Project and Token Overview
https://worldmobile.io/
https://www.coingecko.com/en/coins/world-mobile-token
https://worldmobile.io/about/ecosystem-metrics
https://worldmobiletoken.com/WhitePaper.pdf

This proposal aims to list the updated World Mobile Token WMTX as a market on Liqwid enabling lending, borrowing and collateralization. WMTX is the utility token which powers World Mobile’s decentralized data network. World Mobile is building a decentralized mobile and data-sharing network on Cardano, leveraging EarthNode operators for network transactions.

Market Reasoning
The WMTX token and World Mobile protocol have a long and proven track record as Cardano’s leading Decentralized Physical Infrastructure Network (DePIN), with daily active users averaging 2.5M, 50k+ WMTX holders and 51.2% of WMTX circulating supply on Cardano staked (55.5% of WMTX circulating supply staked on Base).

Risk Considerations
WMTX token is characterized by high market liquidity with multiple tier 1 & 2 CEX listings, historically medium volatility and $1.3M of USD side on-chain liquidity. World Mobile Network generates significant revenue and the community of WMTX holders and EarthNode operators is extremely active within the Cardano ecosystem.

For these reasons WMTX is a strong candidate for market support on the Liqwid protocol. WMTX is positioned as a medium-risk asset according to the CNT Risk Framework.

Suggested WMTX Market Parameters
The proposed interest rates would align with those of existing CNTs listed on Liqwid, such as MIN or SNEK. See the MIN market parameters on Liqwid for reference.

Interest rate parameters:

  • BaseRate 0.00%

  • utilMultiplier 3.50%

  • utilmultiplierjump 20.00%

  • Kink rate 80.00%

Income factor:
The proposed income split is also equal to other CNTs listed on Liqwid:

  • Reserve Factor: 0.0%

  • DAO Factor: 10.0%

  • LQ stakers: 10.0%

  • Market suppliers: 80.0%

Risk parameters:
The proposed WMTX risk parameters are:

  • maxLTV: 54.93%

  • LiquidationLTV: 55%

  • Liquidation Penalty: 15%

  • Liquidation Profitability: 17.64%

The supply cap for WMTX will be set to a token amount equivalent to $1M (based on WMTX market price at the time of its listing on Liqwid). There will be a 90% borrow cap.

WMTX tokens will be enabled as collateral, allowing WMTX holders to borrow ADA, stablecoins, any CNT asset or Wanchain bridged assets deposited on the Liqwid protocol.

WMTX can be borrowed using any collateral asset supported on the Liqwid protocol.

Specification
Liqwid DAO Core Team will begin WMTX market launch steps and final testing following a successful on-chain governance vote.

Conclusion
The Core Team recommends the adoption of this proposal and to support a new WMTX market for lending, borrowing and collateralization on the Liqwid protocol.

Do you support this proposal?

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