Proposal Overview
This proposal seeks to add DAI, USDC, and USDT (Wanchain-bridged tokens) as collateral on Liqwid, enabling users to borrow any other tokens brought through the Wanchain bridge.
*All Wanchain assets will be enabled as collateral against each other excluding direct wash borrows (e.g. USDC collateral to borrow USDC).
Market Reasoning
DAI, USDC, and USDT have been widely used on Liqwid over the past year, demonstrating strong demand and utility. The reliability of the Wanchain bridge has been proven, with liquidators successfully bridging assets back and forth to manage and mitigate any potential defaults. This track record supports the inclusion of these stablecoins as collateral in the Liqwid ecosystem.
Risk Considerations
The Wanchain bridge has been thoroughly tested over the past year, with no significant events or issues that would suggest exposure to unknown risks. The stability and security of these bridged tokens are well-established, making them suitable for use as collateral.
Specifications
Liqwid Labs developers have completed the necessary technical requirements for listing new tokens as collateral. The team will proceed with finalizing the off-chain updates to support loans with multiple collateral assets and configuring the on-chain market modifications needed to integrate these stablecoins as collateral.
Conclusion
The Core Team strongly recommends the adoption of this proposal to add DAI, USDC and USDT for lending and borrowing on Liqwid, in alignment with the current market parameters.
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Yes, I support this proposal.
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No, I do support this proposal.
Note: The potential inclusion of BTC and ETH as Wanchain-bridged tokens for lending and borrowing will further enhance the platform’s versatility and utility.
With these upcoming changes, the market offering on Liqwid will be structured as follows:
- Wanchain-bridged assets will be segregated from the other CNT markets.
- CNT stablecoins could be used as collateral to borrow any Wanchain-bridged stablecoins.
| Collateral tokens | Debt tokens |
|---|---|
| ADA, LQ | All tokens (except OPTIM, only used as collateral to borrow ADA) |
| All tokens | ADA |
| DAI, USDC, USDT 1) | Any Wanchain-bridged tokens |
| ETH, BTC 1) | Any Wanchain-bridged tokens |
| CNT Stablecoins (DJED, iUSD, + soon USDM) | All CNT, any Wanchain-bridged tokens |
| All CNT (except ADA, LQ, CNT Stablecoins) | ADA, CNT Stablecoins |
Comments:
- (1) Wanchain is currently performing an additional audit on their bridge technology, and depending on the results, we may consider adding the option to borrow CNT backed by Wanchain-bridged tokens.