Proposal: Add $iETH as a borrowable asset to Aada V1

Graveyard
1

Proposal Description

I would like to add the $iETH as a borrowable asset in Aada V1.

Short Summary

Indigo is an autonomous synthetics protocol for on-chain price exposure to real-world assets, built on Cardano. iBTC and iETH are Cardano synthetic versions of BTC and ETH from Indigo and iUSD is a decentralized and overcollateralized Cardano native stablecoin

  • Approve
  • Disapprove
0 voters

  1. Project and token overview

The protocol currently has a total collateral ratio of 194%, and Indigo is the 2nd largest protocol by TVL on Cardano (as per DefiLlma).

iAssets (such as iBTC and iETH) are not wrapped assets (e.g., an asset linked by a bridge to a deposit made on another chain); instead, iAssets use a price Oracle to track the price of the underlying asset.

Ethereum is the second largest cryptocurrency by market cap and the largest by TVL

  1. Explain the positioning of the token in the Cardano ecosystem. How will it benefit the protocol?

Introducing iETH as a borrowable asset will allow users to trade on Ethereum price-action without having to leave the Cardano ecosystem.

  1. What’s the asset’s utility?

  • Introduces a non-bridged ETH linked asset to the Cardano ecosystem
  • Users can deposit $iETH in Indigo’s Stability Pools and earn $ADA from liquidated CDPs;
  • Liquidity farming on DEX’s

  1. Security Considerations

The Oracle that provides the price feed is run entirely by the Indigo team which means it’s centralized and represents a possible single point of failure of the protocol. Users should be aware of this when trading iAssets.

  1. Token data

Diluted Market Cap (Taptools): 12.99M ₳ (02.06.2023)

TVL (Minswap): 55.81K ₳ (02.06.2023)

Volume 24h (Minswap): 1.15K ₳ (02.06.2023)

Conclusion

Adding $iETH as a borrowable asset to the Aada Finance protocol will enable users to borrow the token to take advantage of its utility and trade on Ethereum price-action without having to leave the Cardano ecosystem.

References

11 Likes
2

I support this. Is a no brainer.

10 Likes
3

Howdy y’all :wave: I like this idea for a few reasons.

  1. Adding iAssets would give Indigo users an alternative option to acquire the iAsset they need to manage their CDP without having to purchase it from a DEX which is not always ideal considering liquidity and volatility.

  2. This could give Cardano defi users an alternative option for shorting or going long on ETH without leaving the ecosystem and without paying the frequently overvalued price on DEXs.

  3. With liquidity being low for some iAssets like iETH, adding it as a borrowable on AADA could not only improve liquidity but would draw users who specifically need iETH to AADA.

9 Likes
4

Indigo is one of the most promising dApps in the ecosystem!

2 Likes
5

What happened to this we seen no votes

6