Summary
This proposal aims to enable AXL borrowing on the Osmosis outpost of the Red Bank.
Motivation
AXL was whitelisted as a collateral asset only within the Red Bank in May, 2023 (see [MRC-25]). At the time, this was due to uncertainty surrounding the relative newness of the asset and oracle-related risks.
We now propose to allow AXL to be used for borrowing, as there are no risk-based reasons to restrict this option.
Risks
Given that AXL’s price is now determined by a robust and secured Pyth oracle and given relatively low deposit caps, enabling this asset for borrowing should not significantly impact the protocol risks.
Risk Parameters Suggestion
We propose the following Interest Rate parameters:
- Optimal Utilization: 60%
- Base IR: 0%
- Slope 1: 17%
- Slope 2: 300%
Available to borrow? Yes
Implementation
This is a signaling proposal, not an executable proposal.
The Mars smart contracts on the Osmosis chain are currently controlled by the Builder Multisig address. If this proposal passes, the builders will utilize their multisig to make the necessary parameter changes.
Copyright
Copyright and related rights waived via CC0.
Disclaimers/Disclosures
This proposal is being made by Mars Protocol Foundation, a Cayman Islands foundation company. Mars Protocol Foundation engages in research and development of the Mars Protocol. Mars Protocol Foundation and certain of its service providers and managers own MARS tokens and have financial interests related to this proposal. The aforementioned persons or their affiliates may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including OSMO and AXL. These statements are intended to disclose relevant facts and to help identify potential conflicts of interest, and should not be misconstrued as a complete description of all relevant interests or conflicts of interests; nor should they be construed as a recommendation to purchase or acquire any token or security.
This proposal is also subject to and qualified by the Mars Disclaimers/Disclosures. Mars Protocol Foundation may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Mars Protocol Foundation is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Mars Protocol Foundation shall have no liability in the event of losses or damages ensuing from approval or rejection or other handling of the proposal. Each user and voter should undertake their own research and make their own independent interpretation and analysis of all relevant facts and issues to arrive at their own personal determinations of how to vote on the proposal.