Last week, I put up an idea to add functionality to aavegotchis to take on debt. Because the idea seems straightforward and there were no objections, I am now proposing the idea to the Gov’nuhs of the Gotchiverse.
With the release of Haunt 2 comes new aavegotchis that use collateral from the AAVE Polygon market. This opens up the potential for gotchis to take on debt using their spirit force collateral. Spirit force is currently underutilized with most gotchis simply storing the minimum amount of collateral necessary to keep it alive. Allowing gotchis to take on debt would increase the utility of the gotchis, and would add the potential for gotchis to be liquidated for the sadistic gamblers among us.
Additionally, AAVE has a credit delegation feature which could potentially allow the user to directly borrow assets from AAVE with credit delegated from their gotchi. If this were to be implemented, the credit delegations should be reset to zero upon any transfer of a gotchi to prevent any funny business. Because of the potential implications of this feature, this may not be technically viable to implement.
Please comment with any thoughts or concerns with my proposal. If there are no objections, I will be putting up a signal proposal on snapshot next week with the following choices:
- Allow gotchis to take on debt
- Allow gotchis to take on debt and delegate credit
- Do not allow gotchis to take on debt
The vote will be approval based voting, allowing voters to select any number of options, to prevent the splitting of votes between choices 1 and 2. Let’s get liquidated, gotchigang!