List World Mobile (WMTx) on Liqwid as both collateral and a debt token

Temperature Check
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Risk Framework for Cardano native tokens:

WMTx Risk Assessment Report

Overview

This report evaluates World Mobile Token (WMTx) as a potential collateral asset for Liqwid using the Liqwid Risk Framework. Metrics such as trading volume, volatility, maximum drawdown, on-chain liquidity, and product status are analyzed to assess its risk profile.

1. Average 24-Hour Trading Volume

  • Reported Volume: $6.99 million (source: CoinMarketCap).
  • Assessment:
    WMTx falls into Tier 2 (USD 1 million - 10 million), corresponding to a Score of 0.7.

2. Volatility

  • Reported Volatility: 15% (standard deviation of daily price returns).
  • Assessment:
    WMTx falls into Tier 2 (10%-15% volatility), which corresponds to a Penalty of -0.2.

3. Maximum Drawdown

  • Reported Drawdown: 10%.
  • Assessment:
    WMTx falls into Tier 1 (0%-20%), corresponding to no penalty.

4. On-Chain Liquidity

  • Reported Liquidity: 5M ADA, equivalent to $5 million (at 1 ADA = $1).
  • Assessment:
    WMTx falls into Tier 2 ($3M - $10M), resulting in a 5% Liquidation Loan-to-Value (LTV) add-on.

5. Existing Product

  • World Mobile: An active product with a robust and engaged community.
  • Assessment:
    While this does not directly affect the numeric scoring, it adds qualitative support for WMTx’s suitability as collateral.

Risk Framework Summary

  1. Trading Volume: Score 0.7.
  2. Volatility: 15% → Penalty -0.2.
  3. Maximum Drawdown: 10% → No penalty.
  4. On-Chain Liquidity: 5% LTV add-on.

Conclusion

WMTx demonstrates a low-to-medium risk profile with strong trading volume, moderate volatility, low drawdown, and substantial on-chain liquidity. The minimal maximum drawdown (10%) significantly strengthens its risk profile.

Recommendation:

Proposed WMT Risk Parameters:

  • Collateral factor (maxLTV): 58%
  • Liquidation threshold: 60%
  • Liquidation penalty: 17%
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