Summary
The objective of this proposal is to integrate Axelar Wrapped Bitcoin (WBTC.axl) as collateral/borrow asset on the Neuron Outpost of the Red Bank. Incorporating this asset could enhance the utility and liquidity of the Red Bank.
Motivation
Axelar is a decentralized network that facilitates secure cross-chain communication for decentralized applications and powers the Satellite cross-chain asset transfer application. For assets originating on Ethereum, Axelar Gateways create wrapped versions (e.g., WBTC.axl) for use on other blockchains.
WBTC.axl is commonly bridged to Cosmos and has significant total value locked (TVL). On the Astroport platform, the WBTC.axl-USDC pool has $340k in liquidity, while total on-chain liquidity reaches $420k. Due to its adoption and liquid markets, WBTC.axl is a potential listing option for Red Bank, which could broaden its offerings and enhance utility for borrowers and lenders. Furthermore, WBTC.axl listing enables the creation of delta-neutral funding rate arbitrage strategies with Mars perps DEX.
Risks
The governance proposal MRC-18 thoroughly addresses technical and centralization risks related to Axelar bridged assets.
Oracle Risk
We propose to use the Pyth WBTC/USD feed.
Risk Parameters Suggestion
The following parameters are the same as those on Osmosis and follow the guidelines suggested by the Mars Risk Framework.
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Max. LTV: 78%
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Liquidation LTV: 80%
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Deposit Cap: 2 WBTC.axl
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Interest Rate Parameters:
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Optimal Utilization: 60%
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Base IR: 0%
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Slope 1: 10%
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Slope 2: 300%
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-
Liquidation Parameters:
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Starting LB: 0%
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Slope: 1
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Max. LB: 20%
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Min LB: 5%
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Protocol Liquidation Fee: 25%
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Close Factor: 50%
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Reserve Factor: 10%
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Usable as collateral? Yes
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Available to borrow? Yes
Implementation
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": "ibc/DF8722298D192AAB85D86D0462E8166234A6A9A572DD4A2EA7996029DF4DB363",
"deposit_cap": "200000000",
"liquidation_bonus": {
"max_lb": "0.2",
"min_lb": "0.05",
"slope": "1",
"starting_lb": "0"
},
"liquidation_threshold": "0.80",
"max_loan_to_value": "0.78",
"close_factor": "0.5",
"protocol_liquidation_fee": "0.25",
"red_bank": {
"borrow_enabled": true,
"deposit_enabled": true,
"withdraw_enabled": true
}
}
}
}
}
- neutron1dwp6m7pdrz6rnhdyrx5ha0acsduydqcpzkylvfgspsz60pj2agxqaqrr7g
{
"set_price_source": {
"denom": "ibc/DF8722298D192AAB85D86D0462E8166234A6A9A572DD4A2EA7996029DF4DB363",
"price_source": {
"pyth": {
"contract_addr": "neutron1m2emc93m9gpwgsrsf2vylv9xvgqh654630v7dfrhrkmr5slly53spg85wv",
"price_feed_id": "c9d8b075a5c69303365ae23633d4e085199bf5c520a3b90fed1322a0342ffc33",
"max_staleness": 300,
"max_confidence": "0.1",
"max_deviation": "0.15",
"denom_decimals": 8
}
}
}
}
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 Neutron/NTRN and WBTC.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.