Support lisUSD from Lista DAO on Venus Core Pool of BNB Chain

Proposals
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Summary

The Lista DAO team proposes that Venus list Lista DAO’s decentralized stablecoin, lisUSD, as a core lending market on Venus Core pool of BNB chain.

Background

About Lista DAO

Lista DAO is the leading liquid staking and decentralized stablecoin protocol originally built on the BNB chain. Users can undergo staking and liquid staking on Lista, as well as borrow lisUSD against a variety of decentralized collateral assets.

Lista consists of the following major components working in conjunction:

  • BNB liquid staking token, slisBNB
  • Decentralized stablecoin, lisUSD

On June 20, Lista DAO became the second project that got listed on Binance through the Binance Megadrop platform. See announcement here.

About lisUSD

lisUSD is a decentralized, unbiased, collateral backed destablecoin soft-pegged to the US Dollar. Users who have collateralized their assets via Lista are eligible to take out a loan in lisUSD against their collateral. lisUSD is generated, backed, and kept stable through collateral assets that are deposited into CeVault functioning as the Lista collateral vault.

Currently the total lisUSD borrowed amount has reached over $35M, with over $185M collateral value, ranked as 4th largest CDP among all the chains in terms of TVL, only behind Maker DAO, JustStables and Liquity according to Defillama.

There is already a strong ecosystem and mass adoption of lisUSD on BNB chain with the integration of major Defi protocols such as Pancake Swap, Venus, Thena, Kinza, APX, Ether.fi, Renzo, Stakestone, Solv, Bouncebit etc, the onchain liquidity of lisUSD has reached around $20M.

Benefits

Supporting lisUSD on Venus Core Pool will bring several benefits:

  1. Enhance liquidity on Venus

Lista DAO will mint around $5~10M lisUSD upon the approval of the proposal on Lista DAO governance , the newly minted lisUSD will specially be supplied for Venus core pool.

  1. Borrowing lisUSD at a discounted rate

Lista DAO will work hand in hand with the Venus team to dynamically adjust the borrowing rate of lisUSD on Core Pool to ensure that users can borrow lisUSD from Venus at a relatively low rate compared to other stablecoins as well as other platforms. Lista DAO will adjust the supply of lisUSD dynamically and subsidize in LISTA tokens to make the loan interests attractive to the communities

  1. Multiple layers of yield opportunities for users

Lista DAO will provide additional incentives in LISTA tokens to incentivize the supplying and borrowing of lisUSD on Venus, furthermore, users who borrow lisUSD will be able to enjoy up to 40% apr through lisUSD’s Defi integrations.

  1. Innovative Defi strategies

Integration of lisUSD on the Venus core pool will also allow a variety of possibilities on Defi strategies, therefore further increasing the demand for supplying and borrowing lisUSD, as a result, higher protocol fee will be generated for Venus.

Bootstrap Liquidity

Minimum $5m in lisUSD upon Lista DAO community’s approval.

Specifications

lisUSD’s price feeds is available on Binance Oracle

lisUSD is native BEP-20 token

Token Address:

lisUSD: 0x0782b6d8c4551b9760e74c0545a9bcd90bdc41e5

Additional Information

Website: https://lista.org/

Github: https://github.com/lista-dao

Audit: Security | Lista Docs

Twitter: x.com

Medium: Lista DAO – Medium

Telegram EN: Telegram: Contact @ListaDAO

5 Likes
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GOOD IDEA! We need lisUSD

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ListaDAO stands poised to become a crucial infrastructure component within the BNB Chain ecosystem, delivering significant value to core DeFi players and BNB token holders alike.
By listing lisUSD on the Venus Core pool, we unlock greater potential for DeFi innovation on BNB Chain, paving the way for more advanced yield strategies that benefit both Venus and BNB Chain users.

This is a proposal we should all support!

1 Like
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I believe we should run a snapshot on this proposal and then release the Vip. It seems that our users will like the new option to increase their portfolio

5

I really love this part, ill definitely vote FOR!

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Overview

Chaos Labs recommends listing lisUSD on the Venus Core Pool on BNB Chain. Below is our analysis and suggested risk parameters for the initial listing.

lisUSD Backing

lisUSD is a stablecoin created by Lista DAO soft-pegged to the USD and collateralized with:

  • BNB, slisBNB (an LST also by Lista DAO)
  • ETH, wstETH, wBETH, weETH, ezETH, STONE
  • BTCB, BBTC, solvBTC
  • USDT

Of these assets, ETH and USDT have a collateralization ratio of 110%; the ratio is 150% for highly liquid collateral (and slisBNB), and 200% for the LRTs and low liquidity ones. The majority of the TVL is concentrated in slisBNB and wbETH.

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slisBNB has demonstrated some peg instability in the past, but it hasn’t shown any for the last two months. It has also shown growth in liquidity depth in the last six months.

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  • Note that lisUSD and slisBNB were formerly called HAY and SnBNB, respectively.

Liquidity and Market Cap

lisUSD currently has a market cap exceeding $37M. Over the past 180 days, its average market cap has been $43.7M, with a daily trading volume of $2.51M, primarily concentrated on Thena and Pancakeswap on the BNB Chain.

It has also exhibited a daily annualized volatility of 9.37% and a 30-day daily annualized volatility of 5.94%, with a maximum one-day drop of 2.41%.

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lisUSD has recently repegged and maintained a strong peg for the past two months. Before this, it exhibited significant volatility for a stablecoin. Introducing USDT collateral with a 110% collateralization ratio is expected to reduce extreme upward volatility, though fluctuations within a 10% range around the peg are still possible.

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The DEX liquidity of lisUSD increased marginally over the last six months.

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Collateral Factor

Given the asset’s prior volatility, peg instability, and limited on-chain liquidity, we currently recommend listing lisUSD as a collateral asset with conservative parameters. We recommend setting a collateral factor of 50%. Should the asset demonstrate improving liquidity, we will reassess this recommendation.

Supply Cap and Borrow Cap

Under Chaos Labs’ usual 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. However, given the current liquidity of the asset and recent peg instability, we propose more conservative supply and borrow caps. After listing, and following observation of its usage, we may recommend to increase these caps.

This leads us to recommend a 2,500,000 lisUSD supply cap and a borrow cap of 2,000,000 lisUSD.

IR Curves

We recommend setting the IR curve in line with those of similar stablecoins in the BNB Chain Core pool:

  • Base - 0
  • Kink - 80%
  • Multiplier - 0.10
  • Jump Multiplier - 2.5
  • Reserve factor - 10%

Parameters

Parameter Value
Asset lisUSD
Market BNB Core Pool
Collateral Factor 50%
Liquidation Threshold 55%
Supply Cap 2,500,000
Borrow Cap 2,000,000
Base 0
Kink 80%
Multiplier 0.10
Jump Multiplier 2.5
Reserve Factor 10%
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