Proposal: Add SUNDAE as collateral and borrowable asset to Lenfi
Proposal Description
Whitelist SUNDAE as collateral and a borrowable asset to Lenfi.
Short Summary
SUNDAE is the utility token for SundaeSwap. Whitelisting the token as a borrowable and collateral asset on Lenfi will empower the app’s users to leverage it and participate in SundaeSwap governance.
- Approve
- Disapprove
- Abstain
Motivation
1. Project and token overview
SundaeSwap is the first Automated Market Maker (AMM) DEX to launch on Cardano, and the app with one of the longest runtimes on the blockchain. Unlike traditional markets that use a central limit order book, its AMM system balances the values of assets within the pool, allowing users to trade directly within it.
The team recently launched its v3 app, which performs at a considerably higher scale than the previous versions. Another new feature that the app introduced is the ability to settle swap requests and swap transactions within the same block, giving users almost instant swaps.
2. Explain the positioning of the token in the Cardano ecosystem. How will it benefit the protocol?
SUNDAE, SundaeSwap’s native utility token, plays a central role in the DEX’s operation. It represents voting power within the SundaeSwap Decentralized Autonomous Organization (DAO), enabling holders to have a say on things like which pools to incentivize with SUNDAE token farms, how much, and so on.
In general, integrating SUNDAE into Lenfi as a borrowable and collateral asset will bring several benefits:
- Increased Utility: Adding SUNDAE to Lenfi will expand its use cases, allowing holders to leverage their tokens for borrowing and collateral purposes.
- Enhanced Liquidity: By enabling SUNDAE as a collateral asset, more liquidity will flow into Lenfi, fostering a more robust lending and borrowing environment.
- Governance Influence: The DAO will be able to borrow SUNDAE to participate in SundaeSwap governance proposals, potentially influencing key decisions such as incentivizing a LENFI pool on SundaeSwap v3 with SUNDAE rewards.
Current SUNDAE token statistics and market data (as of 22.06.2024):
- Market cap: 18.09M ₳
- Liquidity: 6.28M ₳
- Holders: 87,114
- Circulating supply: 1.11B out of 2B (55.5%)
3. What’s the asset’s utility?
- Voting power within the SundaeSwap DAO.
- Acts as a reward mechanism for liquidity providers on SundaeSwap.
- Potential to incentivize specific pools and proposals within the SundaeSwap ecosystem.
Conclusion
Adding SUNDAE as a borrowable and collateral asset on Lenfi is a strategic move to enhance the token’s utility and liquidity within the Cardano ecosystem. This integration will empower users to leverage their SUNDAE holdings, participate more actively in governance, and contribute to a more dynamic and interconnected DeFi environment on Cardano.