Summary
This is a proposal for creating a new liquidity market to support ETH for lending and borrowing on the Liqwid protocol.
Project and Token Overview
ETH will be brought through the Wanchain bridge on Cardano. (More information here: BTC, ETH, USDC and USDT come to Cardano | Wanchain )
ETH Market Reasoning
ETH is listed on every CEX/DEX and has the second-biggest market cap in the crypto space.
It means that if ETH would be sold on a DEX or any CEX, following a bridge back from Cardano to Arbitrum or Wanchain, we are confident that liquidators would find enough liquidity and the slippage would be low because of these arbitrageurs.
Risk Considerations
The Wanchain bridge has been built with IOG and tested successfully. Wanchain is already operating many bridges and did not encounter any issue until now. (Website: https://www.wanchain.org/ )
The current bridge is accessible there: https://bridge.wanchain.org/
Suggested ETH Market Parameters
In my opinion we should use the same parameters, as we are already using for ERGO which is also a bridged non-stable token.
Conclusion
JustSomeRandomDude recommends the adoption of this proposal and to add $ETH for supplying and borrowing on Liqwid with the proposed market parameters. In the beginning, we should not allow ETH as collateral.
- Yes I support bridged ETH from Wanchain being added to Liqwid as suppliable and borrowable asset.
- No I do not support ETH being added to Liqwid.