This is a proposal for creating a new liquidity pool to support MIN token for lending and borrowing and as isolated collateral in the ADA market on Liqwid.
Project and Token Overview
Minswap’s AMM DEX is the largest Cardano DeFi protocol by TVL, volume and users. The Minswap DAO community is extremely active and they’ve pioneered multiple innovative liquidity products in Cardano DeFi. The MIN token has $6.7M onchain liquidity, more than any other Cardano native token by a wide margin.
Suggested MIN Market Parameters
The proposed MIN market parameters and resultant interest rate curves for lenders and borrowers are equivalent to the ADA market, starting with a 3% BaseRate. MIN supply cap will be set to $3,055,000. MIN borrow cap will be set to 50% of the total MIN supplied.
- RateBase: 3.00%
- RateNormal: 40.00%
- RateJump: 600.00%
- Kink: 65.00%
Income Factor: 80% of the interests paid by the borrowers are payed out to the suppliers (equal to the ADA and stablecoin liquidity pools). The remaining 20% is net margin:
- Reserve Factor: 0%
- DAO Factor: 10.00%
- LQ stakers: 10.00%
Proposed MIN Risk Parameters:
- Collateral factor (maxLTV): 63%
- Liquidation threshold: 65%
- Liquidation penalty: 15%
*MIN will be supported as an isolated collateral in the ADA market.
Following this temperature check, the core team will configure the MIN oracle price feed and deploy it alongside the MIN market on Preview testnet.
The core team recommends the adoption of this proposal and to add MIN as a token for lending and borrowing and as isolated collateral in the ADA market on Liqwid with the proposed market and risk parameters outlined above.
Do you support this proposal to add a MIN liquidity pool on Liqwid and support MIN as isolated collateral in the ADA market on Liqwid?