Summary
The objective of this proposal is to list INJ on the Osmosis outpost of the Red Bank.
Motivation
INJ is one of the largest and most liquid and popular assets on Cosmos. As such, it’s a straightforward asset to propose listing as collateral on the Red Bank. We believe this listing will further promote organic usage of Mars.
Risks
In the sections below we’ll explore the risks associated with listing INJ and the proposed risk parameters for the listing.
Technical Risk
The lack of an active bug bounty or public audits that cover recent upgrades increase the risks of listing INJ from a technical risk perspective. This risk could materialize in a number of ways and considerably impact INJ the asset, which could expose Mars to insolvency risk.
| Metric | Requirements | Comments |
|---|---|---|
| Time Since Launch | Ideal | Injective launched in 2021. |
| Custom Public Audit | Ideal | Injective was audited in 2021 by Informal Systems. |
| Recent Audit | Not met | Several upgrades have happened since Injective launched and no additional public audits have been found for these upgrades. |
| No Critical Vulnerabilities | Ideal | No critical vulnerabilities have been exploited. |
| Bug Bounty Program | Not met | There is currently no bug bounty active for the Injective chain. |
Centralization Risk
In terms of centralization risk, the asset meets the minimum requirements suggested by the Mars risk framework:
| Metric | Requirements | Comments |
|---|---|---|
| Owner Decentralization | Ideal | The Injective blockchain is fully decentralized and governed by INJ holders. |
| Admin Decentralization | Ideal | No upgrade keys - INJ token holders vote for upgrades using the standard Cosmos chain upgrade process. |
| Other permissioned addresses | Ideal | No other permissioned addresses. |
Oracle Risk
We propose to use the Pyth INJ/USD feed.
Risk Parameters Suggestion
Following the methodology suggested by the Mars Risk Framework, we propose the following parameters:
- Max. LTV: 65%
- Liquidation LTV: 68%
- Deposit Cap: 10,000 INJ
- Interest Rate Parameters:
- Optimal Utilization: 60%
- Base IR: 0%
- Slope 1: 20%
- 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 INJ tokens and have financial interests related to this proposal. Additionally, Delphi Labs is one of several entities associated with one another under the “Delphi Digital” brand. Delphi Digital’s 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 Injective/INJ. 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.