I would like to propose to add the $iBTC as a borrowable asset to AADA V1 protocol
$iBTC is a synthetic asset provided at Indigo protocol (https://app.indigoprotocol.io) via overcollateralisation and protected by stability pools. The same type of assets as iUSD which is already available for borrowing at AADA. Having more cross-utility between Cardano DeFi protocols boosts both protocols’ and Cardano’s growth.
Indigo Protocol is the first protocol for synthetics on Cardano. It allows anyone to create synthetic assets and utilize them while keeping your collateral ADA (if ADA is used as collateral) staked in your preferred Stake Pool.
1. Project and token overview
The Indigo Protocol creates synthetics (iAssets) by replicating real-world assets (e.g., stocks) or other cryptocurrencies. In essence, all iAssets are soft-pegged to external-tracked assets using overcollateralization in the form of Collateralized Debt Position (“CDP”). $iBTC is such kind of synthetic asset that can be used in Cardano DeFi universe (as a collateral, as a loan).
2. Explain the positioning of the token in the Cardano ecosystem. How will it benefit the protocol?
$iBTC is a tool to leverage your staked $ADA without it leaving the Stake Pool which is a benefit for the $ADA owner (staking rewards) and Cardano (keeping the chain decentralised).
Having more cross-utility between Cardano DeFi protocols - Indigo and AADA - boosts both protocols’ and Cardano’s growth.
3. What’s the asset’s utility?
$iBTC allows Cardano users to invest in BTC without having to actually buy it, bridge etc, i.e. keeping the assets within Cardano blockchain
$iBTC to be used as a collateral and loan (if this proposal approved) to mint new assets or to lend the asset to those who is in need
Users can deposit $iBTC in Indigo’s Stability Pools and earn $ADA from liquidated CDPs
4. Token data
Max Supply: N/A
Total Supply 73.900469 iBTC (12.01.2023)
Total Market Cap 4.15M ADA (12.01.2023)
TVL (Minswap, Muesliswap) of iBTC/ADA pools: circa 500K ₳ (12.101.2023)
Adding $iBTC to the AADA Finance protocol will expose and increase liquidity of the asset which will help Cardano DeFi to grow including AADA protocol.