Fair Disclosure
I am a DAO member of both Indigo and Lenfi. I am currently serving as an elected Protocol Working Group (PWG) member to the Indigo Protocol. My position is unpaid and my role is strictly to advise Indigo Labs on behalf of the best interest of the Indigo DAO.
Proposal
Add iUSD as approved collateral to be used within the Lenfi Protocol.
- Approve
- Disapprove
Minimum Quorum
The on-chain vote will not require a minimum quorum
What is iUSD
iUSD is a decentralized overcollateralized stablecoin issued on the Indigo Protocol.
What is the Indigo Protocol
Indigo is an autonomous synthetics protocol for on-chain price exposure to real-world assets, built on Cardano.
How does it work
Indigo Protocol allows users to create a Collateralized Debt Position (CDP) and mint iAssets against their collateral. iUSD can be minted from a (CDP) by depositing 120% the collateral value in ADA. Once minted iUSD can be used the same as any other Cardano native token (CNT). The users who mint iUSD against their collateral will need to burn that same amount of iUSD in order to close their CDP and retrieve their collateral. If the user’s collateral ratio (CR) falls below the minimum collateral ratio (MCR), in this case 120%, then the CDP is liquidated and the user loses their collateral.
Why use iUSD as collateral
Using a stablecoin as collateral can offer several advantages over using volatile assets as collateral. Stablecoins are designed to maintain a stable value relative to a specific asset. This means that they are less likely to experience the same level of price volatility as other assets that are subject to market fluctuations. As a result, using a stablecoin as collateral can help reduce the risk of a sudden drop in value, which could otherwise cause a borrower to default on their loan and trigger liquidation. Using a stablecoin as collateral can provide borrowers with a more stable and predictable borrowing experience, while also reducing risk and increasing flexibility.
How iUSD’s liquidation process, Stability Pools, and oracles contribute to its resilience
https://indigoprotocol1.medium.com/advancing-stablecoins-part-2-iusds-efficient-liquidation-system-ensuring-stability-in-the-face-of-5b3cc060e42a
Additional resources and due diligence
Website
Indigo Protocol - Synthetic Assets on Cardano
Decentralized synthetics & tokenized trading on Cardano ~ Indigo Protocol
Indigo tokenizes the real world to provide decentralized synthetics trading for Cardano. Allows anyone to create synthetic assets (iAssets).
Est. reading time: 7 minutes
github
/IndigoProtocol
Median
@indigoprotocol1