Proposal: Add support for USDC, USDT and BTC markets on Lenfi

Summary

This is a proposal for creating a new liquidity market to support USDC, USDT and BTC for lending and borrowing on Lenfi.

  • Approve
  • Disapprove

0 voters

1. Please describe your project. What is it doing to improve Cardano?

Wanchain’s wide area network of blockchains is a decentralised system of direct, non-custodial cross-chain bridges that connect both EVM and non-EVM networks without requiring any centralised intermediaries. Wanchain recently deployed several bridges to Cardano, connecting the Cardano mainnet to Bitcoin, Ethereum, Arbitrum, Astar, Avalanche, BNB Chain, OKT Chain, Optimism, Polygon, and Tron. Users can now access ADA on Ethereum, and BTC, ETH, USDC, USDT and WAN on Cardano.

Wanchain’s goal is to increase interoperability between Cardano and other networks (both EVM and non-EVM).

2. What is the token(s) policy ID? How much USDC, USDT and BTC have been bridged to Cardano?

Policy ID: 25c5de5f5b286073c593edfd77b48abc7a48e5a4f3d4cd9d428ff935

USDC on Cardano is a wrapped token backed 1:1 with native USDC issued by Circle. There is currently more than 400k USDC on Cardano. New USDC is minted on Cardano only when users bridge USDC to Cardano from other networks. Today, users can bridge USDC to Cardano from Ethereum, Arbitrum, Avalanche, BNB Chain (Binance-pegged USDC), Optimism, Polygon, Tron and Wanchain.

USDT on Cardano is a wrapped token backed 1:1 with native USDT issued by Tether. There is currently more than 6k USDT on Cardano. New USDT is minted on Cardano only when users bridge USDT to Cardano from other networks. Today, users can bridge USDT to Cardano from Ethereum, Arbitrum, Astar, Avalanche, BNB Chain (Binance-pegged USDT), OKT Network, Optimism, Polygon, Tron and Wanchain.

BTC on Cardano is a wrapped token backed 1:1 with native BTC on Bitcoin. There is currently more than 4 BTC on Cardano. New BTC is minted on Cardano only when users bridge BTC to Cardano from other networks. Today, users can bridge BTC to Cardano from Bitcoin, Ethereum (WBTC), Avalanche (BTB.b), BNB Chain (BTCB) and Wanchain.

The bridge can be accessed here: https://bridge.wanchain.org/

3. How does Wanchain’s Cardano Bridge work?

In brief, Wanchain’s cross-chain bridges are powered by a group of permissionless Bridge Nodes, meaning there is no central authorisation needed for someone to deploy a bridge node. At any given moment, there are 25 active Bridge Nodes. Together, they form the Bridge Node Group. The Bridge Node Group is re-elected monthly.

To execute cross-chain transactions, the Bridge Node Group uses a combination of multi-party computation (MPC) and Shamir’s Secret Sharing. To oversimplify, the Bridge Nodes each generate a secret share/shard. Once sufficient secret shares are collected and verified, the Bridge Node Group can jointly sign a transaction. This approach is superior to a multisig for several reasons, not least of which is that the private key is never collected as a whole on a single device at any point. In other words, there is no single point of failure that can be targeted by either potential external hackers or insiders that could compromise the bridge.

4. Is your Project audited? By whom?

Wanchain is the one of the oldest, if not the oldest, cross-chain bridge. We take a strong “research-first” approach to building to prioritise security. Wanchain’s VP of Engineering, Dr. Weijia Zhang, is the Chair of the Interoperability Workgroup at the Enterprise Ethereum Alliance. We are also co-authors of the EEA’s crosschain security guidelines. Wanchain bridges are the first public place where these best-practices/guidelines tend to be implemented.

This particular project involved Wanchain, IOG and MLabs. Wanchain has been audited several times. Most recently, the Cardano Bridge was audited by Anastasia Labs.

19 Likes

I vote no to risky, low liquidity assets. For protocol stability you should too.

7 Likes

Interesting play let’s see how this goes

4 Likes

USDT (Tether) is a fraud that will go south eventually. By tethering Cardano DeFi to USDT, we are opening it up to catastrophe.

Here are some accounts on X that exposed FTX, Tether, Bitfinex, Binance, Justin Sun and the rest of the USDT cartel. DYOR.
https://x.com/Bitfinexed
https://x.com/Protos
https://x.com/BoringSleuth
https://x.com/CasPiancey
BennettTomlin
CryptoCriticPod
MikeBurgersburg
NotChaseColeman
(I’m limited to 5 links)

Also check this video where CSO of Circle (USDC) publicly states that Tether is counterfeiting USD (which we already knew for 5+ years):
https://x.com/Bitfinexed/status/1704521543567483185
Note that Dante Disparte also has really, REALLY strong ties to WEF, so take that as you wish.

TL;DR
USDC bad. USDT cancer that will take down everything it’s touching when it does a gg in the future.
Do we really want to mingle with this stuff?

5 Likes

Just for the sake of clarity, BTC, USDC and USDT are amongt the highest liquidity assets in the industry. The versions on Cardano can be redeemed, 1:1, for the native BTC/USDC/USDT on other chains at any time.

9 Likes

That doesnt solve the issue of how currently there is insufficient cardano dex liquidity for liquidating unhealthy positions with these assets as collateral.

2 Likes

Liquidators can bridge the required asset(s) to/from Cardano (only takes a several minutes in most cases). These assets have USD billions in liquidity on non-Cardano DEXs – not to mention the largest centralised exchanges also support these assets.

6 Likes

That is not compatible with the LENFI liquidation system…

2 Likes

Wanchain is doing great by connecting all major blockchains on a trustless way

6 Likes

i trust wanchain and their idea, sounds plausible

2 Likes

i trust #wanchain and their idea. #governance

1 Like

USDT is a fraud!

https://twitter.com/Bitfinexed/status/1705201477927469237

Commenting to increase trust.