Collateral Damage AMA Recap
The Collateral Damage: CDP & Stablecoins AMA together key figures from Angle Protocol, Phuture, Gravita, and Ebisu to debate the changing environment of decentralized finance. Speakers discussed important subjects such as managing borrowing rates in CDP protocols, the value of savings rates for stablecoins, regulatory compliance, and future liquidity and asset integration plans.
Dive into the detailed AMA highlights to learn about how these protocols are shaping the future of DeFi.
X Spaces: Collateral Damage: CDP & Stablecoins AMA
Speakers:
- Pablo Veyrat (X (Twitter): Co-Founder @ Angle Protocol (X Profile)
- Henrique Dias (X (Twitter): CEO & Co-Founder @ Phuture (X Profile)
- Gravita (X (Twitter)
- Ebisu (X Profile)
Index:
- Managing borrowing Rates in CDP Protocols
- Importance of Savings Rate for Stablecoins
- Regulatory Compliance for Decentralized Protocols
- Gravita’s Plans for Liquidity V2 Integration
- Angle’s Focus on Improving on-chain forex
- Davos’s expansion into BTC reward-bearing assets
- Ebisu’s upcoming vault product for restaked assets
1. Managing borrowing Rates in CDP Protocols
- Pablo (Angle) stressed the importance of market-set borrowing rates:
“ I think borrowing rates need to be set by the market. And I mean, the best systems are the ones where it’s not set by the protocol directly, but set by some market demand.”
- Gravita highlighted challenges with a zero-interest model in current market conditions:
“ Despite our best efforts, we clearly can admit that the no interest rate model is not a model that works well in the current market conditions.”
- Henrique (Davos) revealed plans for a dynamic borrowing mechanism using three key metrics:
“ The plan for Davos V2 is to implement a dynamic borrowing mechanism where we will choose the highest among three rates.”
- Ebisu focuses on immutable code deployment with limited governance-modifiable parameters:
“ The majority of the codebase should be deployed as immutable code, and the parameters that are modifiable via governance should be… decentralized.”
2. Importance of Savings Rate for Stablecoins
- Pablo argued savings rates are crucial for stablecoin competitiveness against USDC/USDT:
“ Unless you don’t have to because you have some other growth mechanism… you need to have a savings rate.”
- Gravita shared the success of GRY integration on the Dolomite lending market, yielding up to 15%:
“ Dolomite, IO on Arbitrum, decided to list GRI as a lendable and borrowable asset… it can be even as high as 14, 15 percent.”
- Henrique announced plans for a 100% yield capture mechanism for Davos:
“ What we are going to do and we are implementing in the next couple of weeks is to actually have a 100% yield capture mechanism.”
- Ebisu planning vault products for real yield on restaked assets:
“ We’re going to be launching a few Vault products focused on generating real yield with your restaked assets.”
3. Regulatory Compliance for Decentralized Protocols
- All protocols focusing on decentralization to address regulatory concerns:
“ We are doing everything we can to fall within the scope of a fully decentralized protocol with an on-chain governance.” (Pablo)
- Gravita highlighted the benefits of immutable code for regulatory compliance:
“ Just, you know, immutable code from day one with the token launching together with the project.”
- Henrique mentioned working with European lawyers and implementing a governance model:
“We’re working closely with a couple of lawyers in Europe to have everything addressed and to be as much transparent as we can.”
- Ebisu emphasizes immutable code deployment and decentralized governance:
“We have to ensure the governance token is basically sufficiently decentralized to ensure that we’re not seen as centralized.”
4. Gravita’s Plans for Liquidity V2 Integration
- Gravita revealed their interest in Liquity V2’s business license model:
“We are very interested in what they’re doing and we are very interested in… leveraging this new primitive in DeFi.”
- Highlighted potential for user-set interest rates in CDP model:
“Version 2 will set user-based interest rates… kind of defining a new primitive in DeFi.”
- Teased upcoming governance token launch following “Ascend V2” points campaign:
“There is currently a points campaign which is called Ascend V2… something that will lead to the point holders to likely receive sharing our governance token.”
5. Angle’s Focus on Improving on-chain forex
- Pablo announced Angle’s efforts to enhance forex capabilities on-chain:
“We are building these solutions and expect some cool stuff to be released in the coming months.”
- Aim to improve cross-border payments and remittances using stablecoins:
“We all got in the space with this idea of hey, like stablecoins are going to help for remittances for cross-border payment.”
6. Davos’s expansion into BTC reward-bearing assets
- Henrique revealed partnerships for BTC reward-bearing assets and BTC sidechain integration:
“We have a couple of partners already lined up when it comes to BTC reward-bearing assets, BTC sidechain simultaneously.”
- Announced upcoming rebranding and major changes to Davos protocol:
“We will change a bit the image of the protocol and then come back stronger to the market.”
- Increased focus on the BTCfi market:
“We’ll try to become this go-to CDP protocol for those kinds of assets.”
7. Ebisu’s upcoming vault product for restaked assets
- Ethan announced plans for vault products generating real yield with restaked assets:
“ We’re going to be launching a few Vault products focused on generating real yield with your restaked assets.”
- Targeting launch in fall 2023:
“ Keep your eyes peeled for these vaults that should be coming in the fall.”
- Collaboration with Liquity V2 planned for Q4 2023:
“ Our goal is to partner with Liquity to offer the best dollar liquidity against your restaked collateral.”
Originally published at https://www.stakingcircle.com.
