This proposal seeks approval from dForce Community to list iUSDT, iUSDC, and iDAI as the first batch of collateral assets supported on dForce Vaults (applicable to all deployed blockchains).
Currently, users can mint USX through dForce Lending against interest-carrying collaterals. However, this pool-based lending model restricts onboarding of yield tokens and long-tail assets as collaterals. This is due to the lack of flexibility in setting restrictions on debt ceiling and other risk parameter for each collateral.
dForce Vaults serves as a great extension of pool-based USX lending where all collaterals are sitting in a shared pool, allowing USX to be minted from different tokens in isolation with a completely different risk model, and further expanding USX’s collaterals to a broader category of assets.
By introducing dForce Vaults, we are able to onboard interest-earning tokens including yield tokens (i.e., iTokens, yvUSDC, etc), LP tokens, PoS liquid staking assets (wstETH, rETH, rATOM etc), DeFi staking tokens (i.e., vDF, xSUSHI, etc) and other long-tail tokens, to further extend USX’s primitive as a layer-0 decentralized stablecoin protocol.
dForce Vaults will be implemented with several risk parameters, including Interest (borrowing APY), Total Borrowed (total outstanding USX borrowed under this vault), Left to Borrow (available USX limit of this vault); LTV (loan to collateral ratio), Liquidation Price (the price to trigger liquidation of your collaterals), Borrow Fee (upfront fee for each borrowing).
The Vaults exist independently from dForce’s General Lending Pool , meaning that your collaterals deposited into the General Lending Pool cannot be used as collaterals to support borrowings from Vaults . There will be Borrow Fees charged upfront upon each loan origination.
The first batch of collaterals with proposed risk parameters to be supported on dForce Vaults include:
Applicable to dForce protocols deployed across multiple blockchains.
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