Additional collateral types for insurance mining

I’d like to get a pulse check on collateral types that users would like to see included in insurance mining. Stablecoins only for now.

Additional collateral types for insurance mining
  • DAI
  • aUSDC
  • aUSDT
  • bUSD
  • Other

0 voters

Well DAI would make sense. But how about DDX-ETH LP’s with a higher ratio than the rest? Let’s say. these LP’s would receive 3-4X (an another reasonable X) as much DDX than the normal stablecoin depositors. This would also increase liquidity on either uniswap or sushiswap

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Ah, I think that would actually be a different sort of proposal, since right now there is no LP rewards associated with DDX at all.

LP’s can be used as a collateral type.

At the moment, DDX-ETH LP’s already have already additional incentives in the new sushiswap Omase pools. So giving the options to use the LP’s within the own insurance mining as collateral would be clever. If that better fits in a different proposal then I will create one in case that would be an option. https://sushiswap.fi/onsen

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Oh, I see what you’re suggesting-- actually using an LP token as a collateral type. That would be the first collateral type that isn’t a stablecoin. One of the goals for the insurance fund is that it be liquid in the event that a drawdown is required, but possibly something like this would still work. @apalepu23 do you have any thoughts on this?

Perhaps there could be a threshold (i.e., only a certain % of the insurance fund could consist of this asset before rewards are reduced) to put a cap on exposure, if it would be expected to have more volatility than desired.

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LP incentives makes sense to some extent but would be a different kind of “mining” rather than insurance mining. The point of insurance mining is to make sure the value of it is more stabilized imo. Maybe a separate discussion on incentivizing LPs rather than allow them as a collateral on insurance fund @0xharry

Would love to see sUSD and/or asUSD.

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