Support for Wanchain bridged assets as isolated collaterals

Summary: This proposal includes two objectives:

  1. Enable Wanchain bridged assets as isolated collateral on Liqwid protocol to borrow other Wanchain bridged assets.
  2. Launch markets for Wanchain bridged BTC, ETH, WAN.

Reasoning: Since initial launch of the Wanchain bridge USDC, USDT and DAI have seen steady growth in terms of user deposits, borrow demand and accrued interest in Liqwid. The Wanchain team has proactively pursued liquidity growth incentives since the launch of the Wanchain Cardano bridge in summer 2023. The Wanchain team has shown commitment to improving Cardano DeFi liquidity and is actively pursuing growth tactics with multiple Cardano DeFi protocols.

This proposal will boost utility of Wanchain bridged assets on Liqwid and attract Wanchain users to Liqwid who are seeking liquidity against their holdings. To date Wanchain users have only been able to earn yield on their USDC, USDT and DAI stablecoins with Liqwid. If this proposal is successfully passed these users will be able to tap into liquidity while also earning yields on their assets.

This proposal also represents the introduction of BTC and ETH on Liqwid. As the two largest crypto assets by market capitalization this allows Liqwid to cater to a much larger user base and holder audience.

Risk Parameters: BTC and ETH will have collateral parameters, supply caps and risk parameters equal to ADA.

WAN will have the following collateral and risk parameters:

WAN supply cap will be set to $2,000,000. WAN borrow cap will be set to 1% of the total WAN supplied.

  • Collateral factor (maxLTV): 51.4%
  • Liquidation threshold: 51.5%
  • Liquidation penalty: 15%
    *WAN will be supported as an isolated collateral in the ADA market.

Do you support this proposal?

  • Yes
  • No
0 voters
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