This is a proposal for creating a new liquidity pool to support WMT for lending and borrowing and as isolated collateral in the ADA market on Liqwid.
Project and Token Overview
World Mobile is building a decentralized mobile and data sharing network on Cardano using their EarthNode operators model. To learn more about their mission to connect the unconnected and their technology stack check out their website/blog.This tweet thread from the World Mobile team is a nice introductory into their process: https://twitter.com/WorldMobileTeam/status/1633120819214798848?s=20
World Mobile Token buyback details: https://worldmobiletoken.com/blog/post/world-mobile-token-s-buyback-program-driving-growth-in-the-sharing-economy
WMT Market Reasoning
WMT has a strong utility within the World Mobile sharing economy and is directly utilized by their ErthNode operators and stakers for processing network transactions. Last month the team also unveiled an initiative to use World Mobile’s treasury to purchase World Mobile Tokens (WMT) from the open market via revenue generated following the launch of their commercial services (full details outlined in their blog post above). In addition WMT has consistently had some of the liquidity and volumes amongst all Cardano native tokens supported by a large number of token holders (currently ~25k).
With multiple centralized exchange listings and total daily trading volume across both CEXs and Cardano DEXs ~$1M the WMT is a strong candidate for listing on Liqwid as isolated collateral.
Suggested WMT Market and Risk Parameters
The proposed WMT market parameters and resultant interest rate curves for borrowers and suppliers are the exact same as the ADA market, starting with a 3% base rate. WMT supply cap will be set to $1.25M. WMT borrow cap will be set to 25% of the total WMT 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 (same as the ADA and stablecoin markets). The remaining 20% is split as following:
- Reserve Factor: 0%
- DAO Factor: 10.00%
- LQ stakers: 10.00%
Proposed WMT Risk Parameters:
- Collateral factor (maxLTV): 58%
- Liquidation threshold: 60%
- Liquidation penalty: 17%
*WMT will be supported as an isolated collateral in the ADA market.
Following this temperature check, the core team will configure the WMT oracle price feed.
The core team recommends the adoption of this proposal and to add WMT 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 WMT liquidity pool on Liqwid?