Summary
This is a proposal for creating a new CNT market to support INDY token for lending, borrowing and collateralization on the Liqwid protocol.
Project and Token Overview
Indigo Protocol, a decentralized synthetic assets protocol on the Cardano blockchain. Indigo facilitates secure and efficient trading through iAssets, enabling straightforward transactions and strategic trading.
Users can mint and trade synthetic assets like iUSD, a stablecoin, and other assets such as iBTC and iETH, which mirror the value of Bitcoin and Ethereum, respectively. These iAssets provide diverse trading and investment opportunities within the Cardano ecosystem.
Collateralized Debt Positions (CDPs) and Liquid Staking allow users to collateralize assets while continuing to earn ADA rewards from the Cardano network, ensuring users can maximize their yield across the protocol.
Stability Pools play a vital role in maintaining the protocolās liquidity and stability by managing debt from liquidated CDPs and ensuring the solvency of iAssets.
Through INDY Staking, INDY holders and DAO members can engage in protocol governance, influencing its direction while earning multi-yield rewards, and aligning governance with tangible benefits for its participants.
Source: šIndigo Protocol Brief Overview | Indigo Documentation
Market Reasoning
The token and protocol have a long and proven track record, with over two years of mainnet activity. iUSD is widely used across the Cardano ecosystem and has been listed on Liqwid since 2023.
Risk Considerations
INDY 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 INDY a good candidate for integration into the Liqwid protocol, positioning it as a medium-risk asset within the platform.
Suggested INDY 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 INDY risk parameters are:
- Collateral factor (maxLTV): 39.9%
- Liquidation threshold: 40%
- Liquidation discount: 15%
The supply cap for INDY 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.
INDY tokens will be enabled as collateral, allowing users to borrow any CNT supported assets and wanchain stablecoins on the Liqwid protocol.
INDY 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 INDY integration immediately.
Conclusion
The Core Team recommends the adoption of this proposal and to add INDY as a token for lending, borrowing and collateralization on Liqwid with
- Do you support this listing proposal for INDY?
- Do you reject this listing proposal for INDY?