Summary
The objective of this proposal is to list TIA, the native token of Celestia, as a collateral asset on the Osmosis outpost of the Red Bank.
Motivation
Celestia is a data availability network that will enable modular blockchains, which represent the next generation of scalable blockchain architectures. Blockchains that rely on Celestia scale by decoupling execution from consensus, delegating the latter to Celestia. And Celestia itself scales by using data availability sampling, a new primitive that allows data availability verification to scale with the number of nodes that participate in sampling. Overall, the launch of Celestia has the potential to mark an inflection point in how blockchains are built and is likely to lead to significant scalability improvements.
As such, Celestia (and its native token TIA) is a highly anticipated project. This proposal aims to anticipate the popularity of its token by proposing to list it on the Red Bank as soon as possible. Ultimately, we believe this listing has the potential to increase organic usage of the Red Bank.
Risks
Given the nascency of TIA as an asset, the market risk methodology provided by the Mars Risk Framework couldnât be applied to the asset. Thus, the Maximum LTV and Liquidation LTV parameters are set in a conservative manner, taking the Max. LTV cap that the framework recommends for the lowest tier of assets.
Technical Risk
The lack of public audits and an active bug bounty increase the risks of listing TIA from a technical risk perspective. This risk could materialize in a number of ways and considerably impact TIA the asset, which could expose Mars to insolvency risk. Given this, the proposed risk parameters for the asset (listed below) are very conservative. As more information about the technical riskiness of the asset is available, these parameters can be further relaxed.
| Metric | Requirements | Comments |
|---|---|---|
| Time Since Launch | Minimum | Celestia will be launched on October 30th, 2023. |
| Custom Public Audit | Not met | While weâre aware Celestia is being audited, we havenât been able to find the results of those audits. Itâs likely that theyâre not public yet. |
| Recent Audit | Not met | |
| Bug Bounty Program | Not met | We couldnât find any information about an active bug bounty on Celestia. |
Centralization Risk
We havenât been able to find information about how permissioned addresses will be handled for Celestia and what their powers will be. As such, it should be assumed that the network will be centralized initially while it matures and is further battle tested. Celestiaâs initial launch phase will be referred to as âMainnet Betaâ, a stage of experimentation where instability, reduced performance, fixes, updates and enhancements should be expected.
The proposed risk parameters will reflect this uncertainty and the nascency of the chain at launch.
Oracle Risk
We propose to use the Pyth TIA/USD feed.
Please note that this feed isnât available yet but we expect it to be made available soon after TIA is launched. Given this, only when the feed is made available by Pyth can this proposal be implemented.
Risk Parameters Suggestion
- Max. LTV: 39%
- Liquidation LTV: 40%
- Deposit Cap: 25,000 TIA
- Interest Rate Parameters:
- Optimal Utilization: 60%
- Base IR: 0%
- Slope 1: 15%
- Slope 2: 300%
- Liquidation Parameters:
- Starting LB: 0
- Slope: 1
- Max. LB: 0.2
- Min. LB: 0.05
- Target Health Factor: 1.05
- Protocol Liquidation Fee: 0.25
- Reserve Factor: 10%
- Usable as collateral? Yes
- 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 Delphi Labs Ltd., a British Virgin Islands limited company. Delphi Labs engages in incubation, investment, research and development relevant to multiple ecosystems and protocols, including the Mars Protocol. Delphi Labs and certain of its service providers and equity holders own MARS tokens and have financial interests related to this proposal. Additionally, Delphi Labs is one of several entities associated with one another under the âDelphi Digitalâ brand. Delphi Digitalâs associated entities and/or equityholders or service providers of such entities may hold MARS and may have financial interests related to this proposal. All such entities, service providers, equity holders and other related persons may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including Osmosis/OSMO and Celestia/TIA. Delphi Ventures, a related company, is an investor in rights to receive TIA. 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. Delphi Labs may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Delphi Labs is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Delphi Labs 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.
