Proposal to add stLuna to the MARS money market

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  1. stLuna is a token that represents staked Luna in Lido, combining the value of initial deposit + staking rewards. stLuna tokens are minted upon deposit and burned when redeemed.

  2. Lido is a liquid staking solution for Terra (Luna). Lido lets users stake their Luna without locking assets or maintaining infrastructure whilst participating in on-chain activities, e.g. lending.
    Lido on Terra (LUNA)

  3. Mars aims to attract deposits and lend out this money while managing illiquidity and insolvency risk.

We propose to add stLuna to the MARS money market, which will give users the ability to borrow stLuna against collateral.

Adding stLuna to MARS will provide users with a convenient way to borrow against their staked Luna, and will help to increase liquidity and stabilize the Luna market.

12 Likes
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I agree, why don’t we add also LunaX and bLuna?

4 Likes
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Another idea expand from this is, if we can borrow Luna against Luna derivatives(stLuna, bLuna, LunaX) and enable leverage yield farming on it with the Field of Mars.

It basically 2x leverage with very low/ virtually no liquidation risk.

Is that right? Or I’m missing something?

3 Likes
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I agree, so what do we do now, do we make a poll, and how do we make this proposal on MARS

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I believe all potential new assets have to go through the Mars Risk Framework. So each asset would need to have its own proposal

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If this gets post gets enough support and if stLuna is likely to pass the Mars Risk Framework and the submit proposal page is fixed then we could submit the proposal to the Martian Council

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no I understand that part, but how do we submit proposal to Martian Council

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need 100000 MARS )

2 Likes
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StLuna and lunax are okay, but adding bluna doesnt make sense. With bluna staking rewards would get lost in the void of red-bank smart contract.

Value accrual derivatives like stLuna or Lunax are meant to be used in ‘delegate tokens to some smart contract’ context.

1 Like
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agree regarding bLuna. bLuna and bETH are specifically designed for Anchor borrowing. for all other purposes stLuna/LunaX is the better choice.

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I agree that we should be looking to add in liquid staked derivatives with deep LP pools for the purpose of liquidations. Especially on the assets listed below with the respective LP Pools:

stLuna (Astroport stLuna/Luna TVL: $216mil)
LunaX (Terraswap LunaX/Luna TVL: $114mil, Loop LunaX/Luna TVL: $33mil)
whwstETH (Astroport whwstETH/UST TVL: $19mil)
whstSOL (Astroport whstSOL/UST TVL: $15mil)

According to @larry post here, generally we would need at least $100mil DEX liquidity for TWAP, hence, from the above liquid staked derivative, both stLuna & LunaX are prime candidates.