With X-Anchor on the horizon and the avax UI up I think we should look into allowing high yield bearing PoL tokens to enable borrowing for. GOHM (staked ohm) provides an excellent opportunity being a time tested PoL that has wide support and a massive defi user base.
My proposal has 2 parts actually, hopefully I can elaborate well enough that it makes sense.
With X-Anchor and the new mechanism whereby borrowing interest captures the yield from YB tokens, we should look at other features of value that deposited collaterals have. One in particular is governance voting.
- If Anchor can retain rights to the governance voting of PoL stables like gohm, ogtemple, staked vesq, etc, it can direct these protocols to utilize anchor UST as leverage. How this will be implemented?
My idea is that with the voting power since the tokens are backed by risk free treasury assets we have the protocol deposit it’s tokens onto anchor as a protocol wide line of credit, most likely used for further yield strategies. Is this possible? I think so. Not 100% sure will have to look into it some more.
- Whitelisting the PoL governance staked token. This is the revenue generating portion of the protocol, it also enables governance and is necessary for the first part of the strategy. Even if the first part is opted out this will still drive borrowing demand so long as gohm has a higher apr than borrowing it. Right now it’s around 1000% so I would think it can deflect the cannon pointed at Anchor earn pretty significantly.
- Whitelist gOHM as Collateral on AVAX
- Whitelist gOHM and use governance to direct liquidity to Anchor
- Do not whitelist or do anything
Convex had done this to curve with excellent results in terms of market making. I think this would be the lending markets version of that. Easily starting a new curve wars against money markets.
Even as crosschain, Anchor still relies on the Terra blockchain and a bridge to work with crosschain assets, does gOHM have a reputable bridge to Terra? We’ve been relying on Wormhole, probably due to the relationship from Jump with TFL, as Jump is one of the major investors in that bridge.
Also, there’s a big gap between taking on collateral and being able to vote with it, if Anchor does take on the collateral it will be bridged, as previously mentioned, and thus Anchor will have no voting powers assigned to it.
Right, it’s on synapse, which does not bridge to Terra.
We can request wormhole to build a bridge for it to Terra from avax or eth preferably. Your right about how can we stake it for governance. My guess is a special contract that unwraps it, stakes it on Olympus… in afterthought might be too difficult to implement however being able to borrow UST with gohm would suffice in bringing over new borrowers.
I don’t disagree that gOHM would be a good collateral to add, probably we’re a few months late with the recent beating POL protocols took, but OHM is the og and I’m sure once it survives the winter it will be stronger than before.
Right! It also has risk free value backing maybe we can allow lending UST up to that limit.
Just wanted to say that I was on the Olympus discord and it looks like there might be talks between them and Anchor so this might be something of interest for governance.
Olympus doesn’t want to do leverage abuse either so this could actually be a good partnership.
Correct this a major issue. For Avax tokens, they have to be native avax tokens. Liquidity is key to how this all works. ETH on Avax is bridged over from one bridge then becomes double wrapped if added to Anchor, this prevents proper liquidity because now to get it back to ETH it has to be sent to 2 bridges. The time this takes can wipe out Arb and profit and therefore really diminish liquidity.
We are going to ETH where we should whitelist OHMs staking derivative there.
So ideally (I was talking with some of the guys on discord on this)
We would bridge gOHM from eth <-> Terra then seed the liquidity pool, once the pool has enough depth we can introduce up to risk free value borrowing potentially?
Seeding the pool would have to be a community / organic effort. Maybe something we can arrange in partnership with Olympus (if they were to offer bonds on the pool for example).
I guess from there the price feed would have to be implemented on Terra.
Just letting people know I’ve seeded the isolated market.xyz gohmies pool as a test, it’s basically the same as simulating what would happen if we whitelisted gohm, you can find the dashboard here:
As you can see it very quickly runs into the exact OPPOSITE problem Anchor has lol. We’ll see where the rates balance off too it’ll probably take a bit of time for market to move on this pool.
yeah that was my thought. Once we are live on ETH we can get a proposal up to whitelist this along with some the Curve v3 UST pools.
Correct that wouldn’t be hard.
Just a thought and I’m not coding it, but using Thorchain somehow may be less wrapped eth steps.
Thorchain is the opposite of what we’d want, we want gOHM on Terra, Thorchain is all about keeping the assets in their own native chains and allowing for swaps between the different assets. Anchor doesn’t want to own the collateral, only to lock it as a guarantee for the loan.
Nods. I see thanks. Wrapping tokens is taking custody of original asset from user as is, just not Anchor doing so