Add Support for Stableswap LP Tokens

Temperature Check
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Summary

This proposal aims to add support for stableswap Liquidity Pool (LP) tokens as assets to supply, borrow and use as collateral within Liqwid markets. To begin we propose supporting the SundaeSwap USDCx/USDM Stableswap LP token and the Minswap USDA/USDM Stableswap LP token as markets and borrowable assets. The LP tokens will be supported as collaterals in USDA, USDM, USDCx, ADA and NIGHT markets.

Project & Token Overview

SundaeSwap and Minswap Stableswaps use stableswap-style pricing curves optimized for assets that trade at closely correlated values, such as USD-pegged stablecoins. By concentrating liquidity around the expected parity range, these pools enable swaps with significantly lower slippage and fees compared to traditional constant-product AMMs. Because the assets typically remain near the same price, liquidity providers face substantially reduced impermanent loss. Even when large trades shift the pool composition away from a 50/50 balance (e.g., USDCx/USDM), LP value is largely preserved as long as the assets continue to trade near parity.

Minswap Stableswap audit report: https://github.com/minswap/minswap-stableswap/blob/main/audit-report/TxPipe-audit-report.pdf

Sundae Stableswap audit report: https://cdn.sundaeswap.finance/audits/sundae-stableswap-audit.pdf

Minswap Stableswap specification: https://github.com/minswap/minswap-stableswap/blob/main/stableswap-docs/stableswap-spec.md

**Market Reasoning
**
Stableswap LP tokens from the two premier DEXs on Cardano expands the yield opportunities available in Cardano DeFi while expanding high-quality collateral options available within the Liqwid protocol. Fiat-backed stablecoins with 100% redemption capability represent strong collaterals within the protocol with managed risk profiles. If the stableswap LP token markets become largely utilized this would also allow the Liqwid DAO to tap into a new revenue source while growing the capital efficiency of Cardano DeFi.

Technical Consideration

Liqwid Labs core developers have sufficiently tested the oracle pricing for stableswap LP tokens based on their underlying. USDA, USDM and USDCx are all fiat-backed stablecoins pegged to $1 within the Liqwid protocol due to their always redeemable properties.

Market Parameters

Stableswap LP token markets will be launched with the same parameters as the current USDCx market. Supported collateral types in this market will be ADA, NIGHT, USDCx, USDA, USDM and DJED. These collaterals will have equal borrowing power as they do in existing stablecoin markets.

Interest rate parameters for the Stableswap LP token markets:

BaseRate 5%
utilMultiplier 22.2%
utilmultiplierjump 300%
kinkRate 90%

Risk Parameters
LiquidationLTV Threshold: 80.00%
MaxLTV: 69.56%
Liquidation Penalty: 10.00%
Liquidation Profitability:11.11%

Conclusion
The Liqwid core team strongly recommends the adoption of this proposal to add support for Minswap and Sundae Stableswap LP token markets for lending, borrowing and collateral use on Liqwid.

Do you support this proposal?

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0 voters
1 Like
2

very cool. new kinds of markets

1 Like
3

Find it hard to support this concept when you are complaint about protocol cost and free lunch at the expense of users who supported you! Save this money and provide the Night Air Drop tokens instead. How can you keep spending money when your explanation of cost tried to justify your unethical behavior. You must have liquidity for this to work and that comes from trust. Please do not temp check any other items that cost money until the ADA suppliers get their Night tokens. There is not enough funds to keep supporting your actions!!!

4

Its time for this.

We could also bring new markets wmtx, rise, indy, strike, sundae …. Its time

5

I will not support any future developments on this platform until the Night distribution is granted to all ADA suppliers from the snap shot. You cannot keep spending all of this money you state is not there and expect this to be successful. The funds and expense for Night distribution will not cost as much as this new objective that truly has not been viably validated to cover its cost. We do not need to feel the cost of everyone pulling out of LQ for lack of trust and the web of lies created here on how the Night distribution is being handled. Please stop the madness and taking your free lunch that suppliers are giving you. This is not acceptable. Do the right thing here for the sake of this protocol. Ethics in business are pivotal in success. What would you call this move by DC and the LQ team?