Summary
The objective of this proposal is twofold:
- list the dNTRN asset (a liquid staking derivative for NTRN token, provided by Drop protocol) as collateral on the Neutron outpost of the Red Bank;
- list the dNTRN/NTRN HLS with dNTRN as collateral and NTRN as debt asset.
Motivation
Drop is a cross-chain liquid staking protocol built as an Integrated Application on the Neutron network, it is a member of Lido Alliance. dNTRN is a secure, liquid representation of staked NTRN positions, provided by Drop protocol. This allows users to effectively use a representation of NTRN across DeFi without sacrificing the staking yield.
We expect this is a great asset to be listed and used as collateral that could generate considerable organic demand for the Mars Outpost on Neutron. Furthermore, HLS market listing would allow users of the Red Bank on Neutron to leverage stake dNTRN, a popular strategy that gains significant traction. This further strengthens our conviction that this listing has the potential to further increase activity within the Red Bank on Neutron.
Risks
The risks associated with listing dTokens and HLS for dTokens are explored in governance proposals MRC-105 and MRC-106, correspondingly.
Risk Parameters Suggestion
Following the methodology suggested by the Mars Risk Framework, we propose the following parameters:
| Parameter | dNTRN | dNTRN/NTRN HLS with NTRN debt |
|---|---|---|
| Max. LTV | 44% | 86% |
| Liquidation LTV | 45% | 86.5% |
| Deposit Cap | 4.2M dNTRN / 500,000 USDC | n/a |
| Liquidation Parameters | ||
| Starting LB | 0 | 0 |
| Slope | 1 | 2 |
| Max. LB | 0.2 | 0.2 |
| Min. LB | 0.05 | 0.05 |
| Close Factor | 50% | 50% |
| Reserve Factor | 10% | 10% |
| Usable as collateral? | Yes | - |
| Available to borrow? | No | - |
Implementation
dNTRN Listing
The following message(s) will be executed:
- neutron1x4rgd7ry23v2n49y7xdzje0743c5tgrnqrqsvwyya2h6m48tz4jqqex06x
{
"update_asset_params": {
"add_or_update": {
"params": {
"credit_manager": {
"hls": null,
"whitelisted": true,
"withdraw_enabled": true
},
"denom": "factory/neutron1frc0p5czd9uaaymdkug2njz7dc7j65jxukp9apmt9260a8egujkspms2t2/udntrn",
"deposit_cap": "4200000000000",
"liquidation_bonus": {
"max_lb": "0.2",
"min_lb": "0.05",
"slope": "1",
"starting_lb": "0"
},
"liquidation_threshold": "0.45",
"max_loan_to_value": "0.44",
"close_factor": "0.5",
"protocol_liquidation_fee": "0.25",
"red_bank": {
"borrow_enabled": false,
"deposit_enabled": true,
"withdraw_enabled": true
}
}
}
}
}
- neutron1dwp6m7pdrz6rnhdyrx5ha0acsduydqcpzkylvfgspsz60pj2agxqaqrr7g
{
"set_price_source": {
"denom": "factory/neutron1frc0p5czd9uaaymdkug2njz7dc7j65jxukp9apmt9260a8egujkspms2t2/udntrn",
"price_source": {
"lsd": {
"redemption_rate": {
"contract_addr": "neutron1mz46kwylzd99028tuexx26xdawxsq07twmck0sfv9yndp40vchrs2sn0fs",
"max_staleness": 7200
},
"transitive_denom": "untrn",
"twap": {
"pair_address": "neutron1pd9u7h4vf36vtj5lqlcp4376xf4wktdnhmzqtn8958wyh0nzwsmsavc2dz",
"tolerance": 120,
"window_size": 1800
}
}
}
}
}
dNTRN/NTRN HLS Listing
Update params for dNTRN/NTRN LP in params contract neutron1x4rgd7ry23v2n49y7xdzje0743c5tgrnqrqsvwyya2h6m48tz4jqqex06x
{
"update_asset_params": {
"add_or_update": {
"params": {
"denom": "factory/neutron1pd9u7h4vf36vtj5lqlcp4376xf4wktdnhmzqtn8958wyh0nzwsmsavc2dz/astroport/share",
"credit_manager": {
"whitelisted": true,
"withdraw_enabled": true,
"hls": {
"max_loan_to_value": "0.86",
"liquidation_threshold": "0.865",
"correlations": [
{
"coin": {
"denom": "untrn"
}
}
]
}
},
"red_bank": {
"deposit_enabled": false,
"borrow_enabled": false,
"withdraw_enabled": false
},
"max_loan_to_value": "0",
"liquidation_threshold": "0.01",
"liquidation_bonus": {
"starting_lb": "0",
"slope": "2",
"min_lb": "0.05",
"max_lb": "0.2"
},
"protocol_liquidation_fee": "0.25",
"deposit_cap": "0",
"close_factor": "0.5"
}
}
}
}
Init price source for dNTRN/NTRN LP in oracle contract neutron1dwp6m7pdrz6rnhdyrx5ha0acsduydqcpzkylvfgspsz60pj2agxqaqrr7g
{
"denom": "factory/neutron1pd9u7h4vf36vtj5lqlcp4376xf4wktdnhmzqtn8958wyh0nzwsmsavc2dz/astroport/share",
"price_source": {
"pcl_liquidity_token": {
"pair_address": "neutron1pd9u7h4vf36vtj5lqlcp4376xf4wktdnhmzqtn8958wyh0nzwsmsavc2dz"
}
}
}
Update params for NTRN in params contract neutron1x4rgd7ry23v2n49y7xdzje0743c5tgrnqrqsvwyya2h6m48tz4jqqex06x
{
"update_asset_params": {
"add_or_update": {
"params": {
"denom": "untrn",
"credit_manager": {
"whitelisted": true,
"withdraw_enabled": true,
"hls": {
"max_loan_to_value": "0.86",
"liquidation_threshold": "0.865",
"correlations": [
{
"coin": {
"denom": "factory/neutron1pd9u7h4vf36vtj5lqlcp4376xf4wktdnhmzqtn8958wyh0nzwsmsavc2dz/astroport/share"
}
}
]
}
},
"red_bank": {
"deposit_enabled": true,
"borrow_enabled": true,
"withdraw_enabled": true
},
"max_loan_to_value": "0.54",
"liquidation_threshold": "0.55",
"liquidation_bonus": {
"starting_lb": "0",
"slope": "1",
"min_lb": "0.05",
"max_lb": "0.2"
},
"protocol_liquidation_fee": "0.25",
"deposit_cap": "5000000000000",
"close_factor": "0.5"
}
}
}
}
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 NTRN and dNTRN. 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.