Hello Mars team and community,
I’d like to propose listing the wstETH/WETH.axl Astroport LP token as collateral on the Neutron outpost of the Red Bank. I believe this addition could benefit the Mars ecosystem and its users. I’m starting this discussion to gauge community interest and potentially initiate an official risk assessment process (if it’s not started yet).
Motivation
With the recent launch of Mars v2 on Neutron, I think it’s a great time to consider expanding our collateral options. In my opinion, the wstETH/WETH.axl pool on Astroport Neutron has shown promising stability and liquidity:
- Current pool liquidity: around $1M
- Total APR: around 10%, primarily from AXL incentives (567 AXL daily, recently renewed for another 4 weeks)
By adding this LP token, we could offer Mars users more options for collateralization and potentially attract new users to the platform (and even raise the usability of wstETH within the Cosmos eco).
It might also be worth considering adding an HLS staking/farm option for this LP token. This could be particularly interesting since wstETH itself is lendable on Mars, which is unique among the LSTs currently available on the platform.
Of course, before the official proposal, a proper risk assessment would need to be conducted by the Mars team to calculate the proper LTV, liquidation thresholds, deposit caps, etc.
What do you all think? Would this be a valuable addition to Mars on Neutron?