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Simple Summary
The Anthias team is proposing a grant to build a dForce-specific liquidation health dashboard for the dForce borrowing and lending market, starting with dForce on Arbitrum, as that is where the largest part of the TVL lies. This analytics dashboard will exist for the dForce community, enabling stakeholders within the dForce borrowing & lending ecosystem to manage liquidation cascade risk and more.
Abstract
The Anthias team is composed of three members of Dartmouth Blockchain. Our philosophy is to continually provide value to the blockchain ecosystem through shipping useful products and research. The Anthias team consists of three individuals with development, design, and growth experience. We have extensive experience in DeFi, having contributed at Yeti Finance, Primitive Finance, Temple DAO, and more. We have shipped multiple grants for Euler and Aave and have recently been approved for integrations with Compound V2 and V3 as well as Exactly Protocol.
This liquidation dashboard will improve the dForce stakeholder/token holder experience by allowing users to identify wallets close to liquidation on dForce and position themselves accordingly. The recent crash of May 2022 was caused largely by a series of liquidation cascades as large whale wallets were liquidated. As liquidators sold massive amounts of collateral on exchanges, collateral prices dropped, which resulted in more liquidations. We created Anthias to democratize liquidation health data of all wallets, so all users are able to manage liquidation risk more effectively.
Previous Work Showcase
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Aave
- We created our initial dashboard in June of 2022 to monitor liquidation health on Aave after the Terra/Luna collapse.
- We completed our first grant for Aave in October of 2022. In this grant, we expanded our initial Aave dashboard to allow users to view historical liquidation health data in order to develop an even clearer picture around market risk.
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Euler
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We completed our first grant for Euler in September of 2022. This grant was to integrate our initial liquidation health dashboard with Euler.
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Our second Euler grant was completed in January of 2023. With this grant, we expanded our tool suite for Euler to do Value at Risk monitoring and simulations, in-depth asset and health score filtering, and a more granular wallet view to show covariance among assets individual users were borrowing and supplying.
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Compound
- We were approved for our first integration with Compound V2 and V3 in March of 2023. This grant is to integrate our initial liquidation health dashboard with both Compound V2 and V3.
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Exactly
- We were approved for our first integration with Exactly Protocol in February of 2023. This grant is to integrate our initial liquidation health dashboard with Exactly on both Ethereum and Optimism.
Motivation
There are a number of risk vectors in borrowing and lending protocols, including smart contract risk, price oracle manipulation risk, governance / pool management risk, and market risk (liquidations + bad debt). As protocols like dForce continue to onboard more users, it is increasingly important to equip users with necessary risk-management analytics for healthy activity. Safeguarding users against risk ensures the long-term sustainability of the protocol, as well as an improved user experience (competitive differentiation with other borrowing and lending protocols).
Projects like Gauntlet Network and RiskDAO have showcased what is possible with on-chain analytics for DeFi. On a longer term horizon, we hope to expand on previous projects in two ways: historical data and granular daily data. We will store various metrics (some already live at Anthias.xyz), including Aggregate Liquidation Health, Total Collateral Value at Risk, Wallets at Risk, and more. Users will be able to monitor the historical trends of these metrics, while also viewing granular breakdowns of these metrics per day. We see Anthias as a useful public good for various stakeholders within the dForce ecosystem to manage risk: the DAO governors, users (borrowers and lenders), and researchers. The Anthias team prides itself on making risk management tools usable by all stakeholders–we will continue that mission via these tools for the dForce community.
Specification & Implementation
We are proposing a grant to fund the development of integrating a dForce dashboard with Anthias.xyz for the dForce borrowing and lending market on Arbitrum with the deliverables listed below:
- Live metrics presented: Active Wallets, Wallets at Risk, and Aggregate Liquidation Score
- Table view presented: Active Wallets (includes address, supply amount, borrow amount, and liquidation health)
- Graph view presented: Active wallets (includes liquidation health and wallet size visualization)
- The ability for users to download a CSV of the data presented in the Table View, so that data can be used in modeling
- Wallet View that displays collateral and debt by asset for individual wallets
Cost
- The cost of this integration for our team will be $17k upon completion of the dashboard. This payment will be used for the following costs:
- Database storage ($500)
- Server hosting ($50)
- Nodes ($450)
- Contributor compensation ($16,000)
The deliverables will be live at www.anthias.xyz/dForce.
How long will development take?
- We estimate development time to take 6-7 weeks from approval. Based on feedback from community members, we plan to continue iterating and shipping out new and useful features.
Next Steps
- Leave post on forum for 5 days from time of posting, or until community feedback is finished, maximum 7 days.
- Send to Snapshot vote.
- If approved, fund grant payment via USDC on Ethereum to this address: eth:0x65418dB502e56432121329507aCDE3c0c068c99E
- Anthias Team begins work on integration.
