Summary
BabyDogeCoin proposes the addition of BABYDOGE as collateral to Venus BNB market with the creation of an Isolated lending market.
Background:
Birthed by fans of the Doge meme community. The primary utility for Baby Doge is building a fun meme community to spread awareness of animal welfare and pet adoption.
Baby Doge Utility currently consists of:
Baby Doge AI - Expand your creativity and turn your artwork into NFTs.
Baby Doge Swap - Swap any token on BNB Chain in seconds.
Baby Doge Card - Load your Baby Doge and other cryptos onto a virtual prepaid card spent in fiat!
Farming as a Service - Farming Made Easy for holders and projects!
Baby Doge Army NFT - Our 2D and 3D Collection have a lot of Bite!
Baby Doge Chess - Bringing fun to all our supporters!
Free Token Locker - Lock Tokens and LP tokens for FREE!
Guinness World Record - Baby Doge donated the most pet food in 24 hours.
Charitable Contributions - Baby Doge has donated over $1.4 USD to animal rescue & welfare organizations!
BabyDoge currently has over ~1,819,000 holders, per BSC Scan. The vast majority of these holders are on the BNB chain (1,800,000+).
Benefits:
This unlocks new possibilities for BabyDoge token holders as they can use their BABYDOGE tokens as collateral in the Venus Isolated Markets to access liquidity.
Incentives:
BabyDogeCoin will provide BABYDOGE tokens to incentivize users and potentially bring more users to the Venus Platform.
Venus Protocol expanding the isolated markets allowing the entry of many other projects for the benefit of all users in optimal use cases and with APY yields.
Chaos Labs provides risk parameter recommendations for the addition of BabyDoge to the Venus DeFi Isolated Pool, should the Venus community decide on its addition. Following are our analysis and risk parameter recommendations for the initial listing.
Liquidity and Market Cap
When analyzing market cap and trading volumes of assets for listing, we look at data from the past 180 days. The average market cap of BabyDoge over the past 180 days was ~$178M, and the average daily trading volume was ~$2.3M (CeFi & DeFi).
Analyzing BabyDoge price volatility over the past, we observed daily annualized volatility of 66.6% and 30-day annualized volatility of 44.17%. Considering this volatility, we recommend setting a Collateral Factor of 30% and a Liquidation Threshold of 40%.
Applying Chaos Labs’ approach to setting initial supply caps for new assets, we propose setting the supply cap at 2X the on-chain liquidity available under the Liquidation Incentive (configured to 10%) price impact.
Given the concentrated liquidity of BabyDoge we recommend a derived supply cap of 1,600,000,000,000,000 BabyDoge, and a borrow cap of 800,000,000,000,000 BabyDoge.
IR Curves
We recommend the following setting for the initial listing, which may be adjusted after analyzing the usage of the assets post-launch.
Base - 0.02
Kink - 0.45
Multiplier - 0.2
Jump Multiplier - 3
Reserve factor- 0.25
Recommendations
Following the above analysis, we recommend the following initial parameter values for BabyDoge in the DeFi Isolated Pool:
