I tried to figure out ways for you to be able to add tokens more “freely” into your platform and I came up with following idea:
Ramp-up Book:
Do basically copy-paste from your current offering, but with new tab (here I use name ramp-up book, but can be whatever you like) in your markets view. It will include all existing tokens, but with lower collateral ratios. for example if goBTC has collateral ratio 75% in “main book”, in ramp-up book it will be 50% for example. this allows you to do “isolated” loan book from main book that has lower collateral values and this way allows you to add tokens that are not suitable for main book.
For example maybe you can add PEPE, xUSD & TINY into this ramp-up book. PEPE with 0% collateral value & $25k borrow cap. TINY with 30% collateral value & $50k borrow cap. xUSD with 40% collateral value & $50k borrow cap.
PEPE is meme token so I understand if you do not want to add it into main book at all, but maybe it can live in this ramp-up book. Adding pepe into your offering will help traders to short & arbitragers to do arbitrage between Algorand & Ethereum. PEPE trading volume is constantly high and this kind of offering will make it even more desired on Algorand ecosystem and also helps with “peg”.
TINY token has 1M “stable TVL” (vestige definition) and has actual utility and is constantly used on Algorand ecosystem. TINY can first be added in this ramp-up book and when you think it is matured enough and has enough demand in ramp-up book, maybe you can then add it into main book too.
xUSD: CompX has really pushed xUSD forward recently. it has new curved fee model to help with peg. it also has staking feature where people can stake xUSD and get 20% of fees as rewards, so in case of de-peg, people have incentive to buy xUSD from market at discount and stake. then sell when pegs again. Adding it into ramp-up book will give it more value when people can use it as collateral against token loans that are not yet in main book. Also by depositing xUSD into ramp-up book, they will get interest like in main book. When xUSD is able to keep constantly its peg and is matured enough in your eyes, then it can be also added into main book.
Main point of this ramp-up book is to allow you to add more tokens into your platform in safe manner. so no need to go “all-in” with new tokens, but can be added thru this kind of “safe space” (couldn’t came up with better word ).
New token adding route will be first into ramp-up book and then maybe later into main book too.
This way you can build up more versatile book for traders without compromising main book.
Hey Roam, thanks for the proposal.
The benefit I see here is definitely from a community perspective, but who will actually use assets with such conservative parameters (you must have them)? The benefit to the protocol is unclear, even from a revenue pov. Moreover, as these are two different environments, you can never know what will happen in the “real market” . If we find to make it interesting from a risk/revenue (for the Community treasury) perspective then it’s something that can be taken into consideration but if the ratio is skewed towards the former, then it is not feasible.
I’ll note this for a future “upgrade”
“who will actually use assets with such conservative parameters (you must have them)?” - answer: arbitrage and degen traders.
Point is to give traders & new tokens separate book. This will help protocol to be more vivid and versatile in safe manner. this book has different purpose than main book obviously. Let me try to make it more clear. maybe my explanation was poor.
First of all, parameters will be increased when possible, just like you do in main book.
Now small journey how this book might help users and even lure new users:
1.) Say I have PEPE & TINY tokens in my wallet and I have no intention to sell them. Now I can deposit them into this ramp up book, so I can earn some interest.
2.) Mr degen comes and want to short PEPE because thinks market will go down. → He deposits USDC & xUSD (he manged to buy xUSD from de-peg) as collateral, so he can borrow PEPE.
3.) Lady Tiny-Governor wants to boost her TINY power, so she borrows TINY from platform and deposits goBTC as collateral. aim is to pay TINY loan back from farm rewards.
4.) Mr Arb-dude69 wants to do PEPE arbitrage between Algorand & Ethereum so he borrows PEPE & places goETH & EURS as collateral.
5.) Mr Arb-dude69 borrows all BOBO so he can execute arbitrage trading between chains much more safe fashion and places USDC as collateral.
So, idea is to allow traders and arbitragers opportunity to trade assets that wouldn’t be normally available. This platform opens up many new possibilities and can even lure quite big TVLs to some assets. say arbitrage or even normal traders will borrow all available PEPE possible (say it will be $25k for example). it will mean that PEPE holders have incentive to deposit PEPE and get that nice yield. so will probably lure up to $100k PEPE TVL if not even more. that is about same level than your wLINK. So idea is to benefit from assets that are actually used on Algorand all the time. for example xUSD trading volume was over $600k yesterday, so I am pretty sure there will be demand for that. Now xUSD users can deposit it in this ramp up book and take loan against it until it will be added into main book too. then ofc they will prefer that book over ramp up book because collateral value in there will be higher. but meanwhile ramp up book is better than not available at all.
So main idea behind this is to allow community to use assets that are not suitable for main book in way they see fit. that can be arbitrages, cross-chain trading strategies, benefit from market anomalies etc.
Thanks again for your valuable feedback. In general I think this could be a great idea, it will allow the community coin to get visibility and in return the protocol can attract those users. Of course, even though these coins are meme/community tokens, they need to meet parameters to ensure smooth liquidation. We’ll put this in our to-do research list and we’ll evaluate the best flow
).