Now that the vote about haunt 2 is live I think we could start talking about adding new aTokens as collateral. This would obviously not affect haunt 2 if it were to launch on April 6th.
I think the advantages of adding more collaterals as Spirit Force are pretty obvious, while I don’t immediately see any drawbacks. We get to include more communities into our game and create a higher diversity of Aavegotchis - both great for our ecosystem as a whole.
Which collaterals to add is obviously up for debate. I’d suggest the following two:
aWBTC - Well, duh, it’s Bitcoin. Don’t think more has to be said.
axSUSHI - They are one of the most recent additions to the Aave liquidity pools and have already grown to be one of the largest. SUSHI is definitely one of the DeFi bluechips and their team continues to innovate, would be great to have them on board.
Looking forward to hear what you think, if there’s enough support I’ll create a real community proposal.
I like the suggestion and as far as I know aSNX was one of the original options. I just looked at the Aave V2 market though and they have really low liquidity on there. I think that’s also why the team decided to remove them from the original gotchi pool. If there’s enough support for it, I can add it as a third option though.
I suppose that makes sense. I guess Im coming at it from a purely community associated interest in their own spirit force gotchis. Like I want snx gotchi. And I want a sushi gotchi.
I’ll also add im in support whatever the outcome and that if this were in fact to be actioned before a second haunt goes ahead that it adds an additional avenue of interest to the haunt for that reason…
I’d like to hear more about the considerations and rationale for selecting collateral. Is it to attract high asset individuals? Appeal to large audiences holding widely circulated currencies? Promote crypto that is driving DeFi adoption? Expand GHST liquidity?
But these aren’t on Aave yet and probably won’t be for a long time, We can always add other ones at a later point in time. Currently aWBTC and axSUSHI are the largest pools on Aave so I don’t see why we wouldn’t want to add them.
What’re the average interest rates like on these two collaterals? (I could go to app.aave.com but since most people won’t, it would be helpful to list them).
We already have several collaterals with low or zero interest rates, so the next collaterals we add would preferably have higher rates.
Good point. Since both of them are huge markets and people are quite bullish on them (especially SUSHI), the interest is fairly low. Basically all governance tokens have pretty low APY, as Aave is mainly used for on-chain leverage. I’ll also include SNX because it’s an outlier in terms of interest and @kuzutov requested it.
APY for WBTC (currently 0.17%)
APY for xSUSHI (basically 0% right now)
APY for SNX (currently 5.69%)
I guess the case for including DeFi assets despite low APY is the enormous upside potential, as well as the possibility to stake your favorite tokens into an aavegotchi. Apart from stablecoins it’s extremely hard to find good yield in a bull market. This will probably adjust itself after the cycle ends.
I would like to add one more thing here. These are just the Aave lending yields. Since axSUSHI is the aToken of staked SUSHI (xSUSHI), it generates staking rewards (protocol fees) on top of that. With an APY of ~7% at the moment, this is the non-stable aToken with the highest yield. Even the average of ~4.85% puts it comfortably at rank 2, just behind aSNX.
I’m a bit concerned about the amount of liquidity of maTokens on Quickswap. Would adding new tokens dilute liquidity & make it harder to swap for needed maTokens? Is Quickswap willing to incentivize additional maToken pools?
maUSDC is one of their largest pools and all other maTokens also have 250k+ in liquidity, so they clearly have incentives to do so. I think it’s a valid concern for the future, since it could become a problem if we add too many new collaterals. Would be interesting to know if the team has any thoughts on this.
Alright after 2 weeks almost 1.4 million GHST voted on this proposal with a clear majority supporting it.
We sadly did not reach quorum (around 3.5 million GHST) but there seems to be a lot of interest for new collaterals. Maybe it could be combined with this proposal:
