Summary
Add support for the MKR and UNI markets on Venus Core pool.
Rationale
UNI and MKR are well-established and widely recognized tokens in the decentralized finance (DeFi) ecosystem. UNI is the governance token of Uniswap, one of the largest decentralized exchanges, while MKR represents the governance rights of the MakerDAO platform.
Motivations
By including UNI and MKR in the Core Pool, Venus would be able to tap into the liquidity and trading volume of these tokens. This would attract more users to Venus, as they would have access to additional trading options and potentially higher yields.
Furthermore, the addition of UNI and MKR markets would enhance the diversification of assets in the Core Pool. Currently, Venus mainly focuses on lending and borrowing assets such as stablecoins and popular cryptocurrencies. By incorporating UNI and MKR, users would have the opportunity to lend, borrow, and trade these specific tokens, diversifying their investment portfolios and hedging against market risks.
Additionally, both UNI and MKR are known for their active and engaged communities. By bringing these communities to Venus, Venus would benefit from increased exposure and potential new partnerships. This could lead to greater adoption and usage Venus, ultimately driving it’s growth and success.
Proposed Parameters
(As per Chaos Labs recommendations)
Following their market analysis, Chaos Labs recommend the following initial parameter values for MKR and UNI in the Core Pool:
Supply Cap and Borrow Cap
Applying their approach to setting initial supply caps for new assets, Chaos Labs proposes setting the supply cap at 2X the on-chain liquidity available under the Liquidation Incentive (configured to 10%) price impact.
Given the current liquidity and volume of MKR and their recommendation to disable this asset as collateral, they recommend a supply cap of 500 MKR, representing ~20% of the total circulating supply, and a borrow cap of 300 MKR.
Given the current liquidity of UNI they recommend a derived supply cap of 50,000 UNI, and a borrow cap of 30,000 UNI.
IR Curves
Chaos Labs recommends the following setting for the initial listing, which may be adjusted after analyzing the usage of the assets post-launch.
- Base - 0
- Kink - 0.5
- Multiplier - 0.2
- Jump Multiplier - 3
- Reserve factor- 0.25
Conclusion
Adding UNI and MKR markets to Venus Protocol’s Core Pool would expand its offering, attract more users, enhance asset diversification, and potentially lead to new partnerships and increased adoption. It would be a strategic move that aligns with the project’s goal of becoming a leading decentralized lending and borrowing platform within the DeFi space.
, make it done
