Potential Agave roadmap

Hi folks! With staking and launch nearing, and with some recent progressions in the crypto space, I think it makes sense to start talking about the Agave roadmap and ways we will differentiate our product from Aave and provide value in ways that is novel.

Let’s first talk about the Agave MVP/Beta launch. The goal currently is to launch near the beginning of May. The exact date will depend on the results of the audit. The main theme here is to get something working and not to greatly diverge from Aave:

Beta key features:

  • Collateralized lending on xdai
  • Begin with a small number of available collateral types:
    • ETH
    • STAKE
    • WBTC
    • XDAI
    • USDC
  • AGVE staking(1% AGVE total supply/ yr emission schedule)
  • Improved UI with 1hive/Agave theming

After launch our focus will move to what we are calling the Agave V1 launch. The goal here will be to provide new and novel value in unique collateral types, integrations, features, and even new smart contract work such building a working security module. Aave’s security model as it exists is just a glorified farming contract.

V1 key features:

  • Celeste integration/Agave as a disputable DAO
  • Possible fork of the 1hive honeypot frontend for a better Agave DAO interface?
  • Create a working safety module
  • Honeyswap LP tokens as collateral
  • Possibly other uniswap fork LP tokens as collateral for rate arbitrage? (uniswap v2, quickswap, pancakeswap, baoswap, etc)
  • xBalancer tokens as collateral?
  • Possibly HNY and/or AGVE as collateral
  • Wide range of new collateral types (let the floodgates open!)

Finally with V1 launch our path will have diverged from Aave and we will be ready to blaze new trails. Out here are some really wild and wacky ideas. Some of these ideas may be simpler than they first appear, and some of these may never materialize, but here are some of the cooler ideas that have been brought up for ways Agave could build on collateralized lending for V2 and beyond.

V2+ ideas list:

  • Sourcecred income collateralized lending (a form of payday lending on the blockchain)?
  • Lending and borrowing of utility NFT’s like beezut game NFT’s or yield earning NFT’s, etc.
  • Automated risk parameter setting?
  • Add new collateral types permissionlessly?
  • Additional oracles integrations like using uniswap TWAPs to bypass the need for new chainlink oracles on every collateral type?
  • Other integrations with OTTO and other 1hive projects?
  • Cross chain compatibility?
  • Tighter integration with honeyswap wallet and UI?
  • Better analytics tools?
  • YFI fork or other yield optimization stuff built on top of Agave?
  • Single transaction levering/more user friendly UX
  • Rai fork? some sort of stablecoin system similar to Maker to create a layered collateralized lending platform? Potentially the revenue could be much higher bc you could have people create stablecoins from collateral like Maker does, then relend out the collateral for other tokens?
  • Currently Aave liquidates half of a position at once if it becomes undercollateralized. On L2 and sidechains we can probably improve this. This liquidation percent should be made an easy to change governance parameter. We can start by setting it to only liquidate 25% when a vault becomes undercollateralized. In a perfect world this would be much more continuous, only liquidating just enough to overcollateralize to some specific level. (This may be a viable change for V1)
  • beta weighted risk parameters: Potential Agave roadmap - #21 by befitsandpiper

Thanks, sorry if this post is a little messy. I would love to hear any feedback on these ideas, and also gather any ideas from the community that are not listed here yet.

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So nice to read about so many possibilities. I’ve read and heard of many of them, but a forum post feels nice.

I’ll read this more than once, so far I’m very excited about everything. I think it will be important to give a timeline to whatever will eventually be in the roadmap, in order to create an ever growing interest and excitement about what’s coming next for Agave.

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The way of 1Hive are infinite! Great job guys keep it up!

P.s. What is “OTTO”?

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OTTO is based on pool together fair lottery, using Agave to produce the yield which is earned by the lottery winner.

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Really Niiice, who is behind the development?

Just seeing this ik this project is legit

development of otto hasn’t started yet, but it will be worked on by 1hive members, which includes anyone who is interested.

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Must we wait May for seeing the changes?

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@befitsandpiper It is nice to see a consolidated view of Agave on a forum post. I hope either this post can be edited or a new post can be made up may be once month or so to provide a continuing update on the project.
I am really waiting for the AGAVE MVP launch as this will really put to test the theory of being able to bring larger liquidity to AGAVE/ 1HIVE and Honeyswap and then starting to build the lego blocks for the future of 1Hive… !
@Goldoni On the ‘OTTO’ note, from what i know PoolTogether have already deployed on xDAI but the issue is that there is no active pools at the moment as there is no yield generating protocols to be used. Once AGAVE is launched i think 1Hive should seriously think of incentivising a few pools on the PoolTogether xDAI deployment instead of having to reinvent the wheel. I have read the paper on OTTO and it has some ‘cool’ additions to what PoolTogether currently do, but may be as a start we could use an existing project.
I made a post on this in the #proposals https://discord.com/channels/698287700834517064/770282095758802964/828781318568935445 but it did not receive any comment, so i assumed that the community is probably not very interested in this. Would be nice to kick this off again once AGAVE MVP is launched.

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This is amazing we all all eager to see the BETA, v1, and at long last the amazing v2. :grinning:

Could KPI options work on layer2 and with AGAVE? The guys at UMA surely will like the idea.

can you elaborate on KPI options?

yes I think this is a good idea, I didn’t know they had already launched.

just to add a few I forgot about:
staking will allow you to vote with your staked agave
at some point upgrade to be able stake Agave LP’s and vote with Agave LP’s
As for the uma kpi, I will be pretty bummed if we don’t do this for the airdrop

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Yea… i had not realised PoolTogether had deployed to xDAI until i was on one of their community calls on discord and someone pointed it out to me. There was at least a few in their community that were excited about the opportunity that this presents. I also discussed AGAVE with them briefly to say that yield generating protocols are on the way to xDAI which will make PoolTogther more interesting once AGAVE is launched.!!

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I am going to start with this one because it has been something I have been trying to get Maker to consider. The idea a partial liquidation can return a borrower back into good standing is something to pay attention to. borrowers understand system needs to act, but they feel better if that system does everything possible NOT to liquidate them.

I had a crazy idea not posted to allow users to set their own liquidation fee to allow for an additional management tool on liquidation points.

Example default liquidation fee is 13% and say LR is 125% it might be nice for me to go well I will set this fee to 15% if i can have a LR of 123. etc. ofc there needs to be enough of a profit buffer. I also felt that people who maintained high CRs should get a SF fee rebate (DAI-R) that could then be exchanged to pay down loans or exchanged for DAI… etc.

There are lots of ways to help users not get liquidated that don’t jeopardize the system. with respect to SC loans I like that idea but then wouldn’t we have to put a lien mechanism in the SC system? WOuld that be complex to implement?

There are security issues with this. not sure if we could do this in a securely automateable way.

i am looking at tjis more for L2 chains so that we don’t have like 5 different representations of same tokens on different side chains… We really need an integrated representation across all chains of the same token… imo it is really messy to move DAI around from one chain to next.

Thanks for the update on plans for Agave!

connext solves the multiple representations issue for the same token. xpollinate already makes binance dai, binance usdc, etc completely redundant.

Yes, SourceCred would need to be a blockchain native system to allow SC loans. We’re not there yet, so atm it wouldn’t be really possible.

I think we can add collateral types with certain pre-checks in Agave optimistically, then they can be disputed with celeste, so we could create a collateral blacklist.

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I thought we can use hny for collateral…so it shouldn’t be ready at launch,right?
How long does it take to move V1 after launch?

unfortunately we won’t be able to use HNY as collateral at launch because Chainlink is not willing to make an oracle for it right away. Hopefully the launch of honeyswap on polygon will help increase HNY volume and liquidity, then it may be easier to convince them.

so it’s just a matter of time i think
matic - xdai bridge isn’t available yet,right?

xpollinate has a matic-xdai bridge, yes: https://www.xpollinate.io/