> DIP011 – Proposal to Extend USX Secured Credit Line to Liqee
Liqee is the first lending market for liquid staking tokens, powered by dForce’s lending protocol. As an important ecosystem partner of dForce who will help extend lending support beyond major crypto-assets, we propose to extend a 6,000,000 USX-minting secured credit line to Liqee.
dForce will partner with Liqee to launch the lending market for liquid staking tokens (PoS staking tokens, DeFi staking tokens, etc). As an ecosystem project, Liqee is fully powered by dForce lending protocol (codebase is based on codes from dForce) with allocation of LQE Token (Liqee’s governance token) to DF token stakers, demonstrating strong interest alignment between the two communities.
In light of the partnership, we propose to extend 6m secured line of credit in terms of USX minting to Liqee, allowing users to mint USX against supported collaterals on Liqee, and further promoting USX’s adoption.
We would like to advance the following proposals:
Activate USX minting on Liqee, allowing users to mint USX against supported collaterals
Initial proposed parameters:
- Minting Secured Credit Line: 3,000,000 USX (Ethereum); 3,000,000 USX (BSC)
- Interest Rate: 0% for the first two weeks and resume to 3% afterward
- Apply to both Ethereum and BSC.
Evaluation and Analysis:
We believe this is a reasonable proposal with manageable risks:
Liqee is powered by dForce’s lending protocol, which was audited by 4 top-ranked blockchain security firms and is battle-tested.
The secured credit line in terms of USX minting is 6m in total, which is manageable with capped risk exposure and minting rights ultimately controlled by dForce governance.
The minting is secured against collaterals supported on Liqee market, which their risk parameters setting is in line with dForce’s own setting and initial risk parameters and collateral onboarding were jointly discussed and evaluated with dForce team. Click here to view the settings.
Strong interest alignment between the two communities.
Next Steps and Required Actions:
Upon approval, we will proceed to implement the USX new handlers and minting credit line setting.