Listing Proposal for Chainlink (LINK) on Agave Protocol

Add Chainlink (LINK) to Agave Lending Protocol

Overview:

Chainlink (LINK) decentralized oracle networks provide tamper-proof inputs, outputs, and computations to support advanced smart contracts on any blockchain.

Why it matters to have LINK on Agave Protocol?

  1. LINK is one of the most highly regarded projects in the crypto space
  2. LINK has one of the highest market caps in the crypto space.
  3. We can attract liquidity to the xDai STAKE ecosystem and help increase TVL on Agave Protocol.
  4. We use LINK price feeds on Agave Protocol adding support is mutually beneficial.

Perhaps these parameters should be different on Agave to how they are on AAVE, I thought to add this for reference as have not the expertise to determine the correct parameters.

AAVE v2 on Ethereum mainnet allows for:

  1. Max TVL of 70%
  2. Liquidation threshold 75%
  3. Liquidation penalty 7.50%

Any feedback would be great as this is my first proposal, I am not a developer or in finance so I am unable to add the kind of insights and information a developer/analyst can, I will adjust the proposal as necessary and formalize it with the feedback given.

Regards

2 Likes

Hey @Hodlr89 , thanks for this. Yes, Liink and USDT were 2 of the principal tokens we may be adding. definitely good as we approach the inevitable merge. i’m not sure if link is a game changer as there is not that much link on xdai, but i imagine this trend to possibly change in the coming months.

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You make good points, I realize LINK liquidity is super low on xDAI at the moment, but I am thinking if we are the first sidechain to add then we may be able to entice those on layer 1 and even Polygon network to bridge over via Omnibridge (If/when we add LINK, I think we should announce at the same time the
Omnibridge and Agave/Symmetric dual rewards) How to announce this in the least convoluted way is probably going to be tricky, maybe…Cheers @Stonky

How does everyone feel about adding HNY and AGVE at the same time this is done? May as well add the “native” tokens to the platform.

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Due to HNY supply and it being a community token used to pay DAO contributors it isn’t really a viable option under the current tokenomics from what I have gathered. I wonder if the community would vote to mint more HNY? What would the implications be? It would be cool, I was imagining that you would be able to from the start :sweat_smile:

Adding AGVE at the same time would be great but apparently there’s more interest in adding LINK and USDT first.

Also would trying to add two tokens at the same time complicate the voting process as now there are two choices and many may want to swap one option for another. This could slow things down so perhaps its faster to do one at a time…?

I think we should opt for a higher Liquidation penalty of 10% due to the current liquidity shortage of LINK on xDAI. The other parameters look fine to me. The slope should probably use the fixed rate until 45% utilisation rate and then scale at the 7% per additional percent increase. Similar to the one used in aave and i don’t see any reason to do it differently.

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Ok so change to 10%

Anything else?

Anybody?

I’m all for this! LINK is a great project in this space. Could we consider higher rewards for depositing LINK like partnering with Symmetric Finance for LP rewards to attract LINK liquidity to Gnosis Chain?

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Hey, yeah I was wondering how these reward ratios are, I mentioned in Discord perhaps devs will give an answer there instead. I think if I remember right It gets adjusted manually depending on what the platform needs more of. So like a supply and demand thing, I would presume that due to this if its correct would mean the rewards at least initially for LINK would likely be greater than other assets until it reaches a certain supply. But don’t take my word for it, where still discussing parameters so the proposal can be updated. Agave Discord, cheers.