Integrate Usdm LP Tokens as supplied assets on Liqwid

Temperature Check
1

Objective:

To enhance the utility of USDM and foster liquidity on Cardano, this proposal seeks to integrate stable/stable LP tokens
(e.g.,Usdm/Usda, Usdm/Ousd, Usdm/Djed, Usdm/Iusd) as supplied assets on Liqwid. This initiative will provide new yield opportunities, support ecosystem growth, and create alternatives to centralized money markets.

Key Benefits

  1. Liquidity Growth:

    • Support liquidity pools on Minswap, SundaeSwap, and Vyfi by introducing LP tokens to Liqwid’s supplied assets.
    • Encourage large liquidity providers to contribute, with a target of $10-20 million in USDM liquidity.

  2. Yield Alternatives:

    • Offer a decentralized alternative to centralized platforms like Coinbase’s USDC yields.
    • Enable multi-yield opportunities by compounding liquidity pool rewards and lending yields.

  3. Diversification for ADA Holders:

    • Tap into ~25 billion ADA in staked assets by offering a stable/stable LP-based strategy with higher potential returns.

  4. Ecosystem Growth:

    • Enhance the adoption and utility of USDM as a stablecoin in Cardano’s DeFi ecosystem.

    • Drive liquidity and trading volume across Cardano DEXs.

Technical and Risk Considerations

  1. Oracles:

    • Identify dependable oracle solutions for LP token valuation
    • Mitigate price manipulation risks by using aggregated price feeds across multiple DEXs.

  2. Supply Cap:

    • Establish limits on LP token deposits to minimize potential risks.

  3. DEX Availability:

    • Ensure LP tokens are swap-compatible across multiple DEXs to reduce dependency on a single platform.

  4. Community Safety:

    • Conduct audits and stress tests to evaluate the system’s robustness.

Implementation Steps

  1. Collaborate with Minswap/Sundaeswap/Vyfi and Liqwid Teams:

    • Coordinate with Dex’s for LP token support and integration.
    • Work with Liqwid’s developers to address technical requirements.

  2. Oracle Integration:

    • Partner with oracle providers to ensure accurate and reliable price feeds for LP tokens. Or create a out of box solution similar to whats been done with Usdm currently

  3. Community Engagement:

    • Post a temp check and gather feedback to refine the proposal.
    • Address questions regarding oracle reliability, supply caps, and DEX compatibility.

  4. Liquidity Commitment:

    • Demonstrate intent by pledging $1 million in USDM liquidity upon implementation.

Conclusion:

This proposal offers a transformative opportunity to expand USDM’s utility, boost Cardano’s DeFi ecosystem and provide decentralized alternatives for yield generation.
We invite the community to review and support this initiative, paving the way for sustainable growth and innovation on Cardano.

Integrating LP Tokens as Supplied Assets on Liqwid

Objective:

To enhance the utility of USDM and foster liquidity on Cardano, this proposal seeks to integrate stable/stable LP tokens
(e.g., USDM/DJED, USDM/IUSD) as supplied assets on Liqwid. This initiative will provide new yield opportunities, support ecosystem growth, and create alternatives to centralized money markets.

Key Benefits

  1. Liquidity Growth:

    • Support liquidity pools on Minswap, SundaeSwap, and Vyfi by introducing LP tokens to Liqwid’s supplied assets.
    • Encourage large liquidity providers to contribute, with a target of $1 million in USDM liquidity.

  2. Yield Alternatives:

    • Offer a decentralized alternative to centralized platforms like Coinbase’s USDC yields.
    • Enable multi-yield opportunities by compounding liquidity pool rewards and lending yields.

  3. Diversification for ADA Holders:

    • Tap into ~25 billion ADA in staked assets by offering a stable/stable LP-based strategy with higher potential returns.

  4. Ecosystem Growth:

    • Enhance the adoption and utility of USDM as a stablecoin in Cardano’s DeFi ecosystem.
    • Drive liquidity and trading volume across Cardano DEXs.

Technical and Risk Considerations

  1. Oracles:

    • Identify dependable oracle solutions for LP token valuation.
    • Mitigate price manipulation risks by using aggregated price feeds across multiple DEXs.

  2. Supply Cap:

    • Establish limits on LP token deposits to minimize potential risks.

  3. DEX Availability:

    • Ensure LP tokens are swap-compatible across multiple DEXs to reduce dependency on a single platform.

  4. Community Safety:

    • Conduct audits and stress tests to evaluate the system’s robustness.

Implementation Steps

  1. Collaborate with Minswap and Liqwid Teams:

    • Coordinate with Minswap for LP token support and integration.
    • Work with Liqwid’s developers to address technical requirements.

  2. Oracle Integration:

    • Partner with oracle providers to ensure accurate and reliable price feeds for LP tokens.

  3. Community Engagement:

    • Post a temp check and gather feedback to refine the proposal.
    • Address questions regarding oracle reliability, supply caps, and DEX compatibility.

Conclusion:

This proposal offers a transformative opportunity to expand USDM’s utility, boost Cardano’s DeFi ecosystem and provide decentralized alternatives for yield generation.
We invite the community to review and support this initiative, paving the way for sustainable growth and innovation on Cardano.

6 Likes
2

Stables are crucial for the DeFi ecosystem. The motives/objectives of this proposal are sensible and are something that I personally will look for as a DeFi user.