Proposal: Add $iUSD as a borrowable asset in Aada V1
- Approve
- Disapprove
0 voters
Proposal Description
I would like to add the $iUSD as a borrowable asset in Aada V1.
Short Summary
Indigo Protocol is the first protocol for synthetics on Cardano. It allows anyone to create synthetic assets and utilize them without leaving the blockchain’s boundaries. As the first issued stablecoin on Cardano, the synthetic $iUSD stablecoin has the chance to become a game-changer for DeFi, namely Aada Finance.
Motivation
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”). $iUSD is the first of its kind synthetic token and native stablecoin on the Cardano blockchain.
As stated in the Indigo initial DAO proposal for iUSD & iAssets at launch, stablecoins are a key element in DeFi. In this regard, $iUSD aims to tackle all imminent issues regarding the lack of stablecoins. In essence, the ticker represents an overcollateralized stablecoin powered by synthetics.
In other words, $iUSD maintains parity with three asset-backed stablecoins ($USDC, $USDT, and $TUSD) using triple peg redundancy. That way, it gives the Cardano blockchain a real-world utility, introducing a fundamental DeFi primitive - stablecoins.
- $iUSD introduces stablecoins to Cardano without using risky bridges;
- Users can deposit $iUSD in Indigo’s Stability Pools and earn $ADA from liquidated CDPs;
- Liquidity farming on Wingriders;
Indigo Protocol’s tweet states, “$iUSD will be pegged to the median price of $USDC, $USDT, and $TUSD together rather than the mode or mean (i.e., the average) of their collective price.” That way, users get the most protection against depegging events.
Max Supply: N/A
Total Supply: 3.04M
Diluted Market Cap (Taptools): 9.49M ₳ (09.12.2022)
TVL (Minswap): 125.53K ₳ (09.12.2022)
Holders: 313 (09.12.2022)
Volume 24h (Minswap): 42.04K ₳ (09.12.2022)
Conclusion
Adding $iUSD to the Aada Finance platform is crucial for the platform’s development. While it will have sentimental value, doing so will increase the potential prospects regarding lending and borrowing on Cardano.