This proposal aims to bring the fully backed stable coin USDC to the Interlay DeFi ecosystem. Binance has recently announced that users can withdraw USDC directly to Polkadot, which can also be used to pay for transaction fees on the assethub.
In short, USDC will be easily available on Polkadot and Interlay should not miss the opportunity to tap into this source of liquidity and potential new user base coming from Binance.
Supporting this proposal will enact the following:
**IMPORTANT: **This proposal will NOT add any incentives for USDC. This should be proposed separately if the community wishes to incentivise users to deploy USDC on Interlay in some way.
About USDC
USDC has a proven track record of more than 5 years, with a maximum draw-down of about -12% in March 2023. In comparison, the maximum draw-down of USDT was about -9% in May 2017. The calculation for the thresholds account for this draw-down by adjusting the required collateral ratio upwards.
Furthermore, USDC is 1:1 backed with USD that is being held in bank accounts or invested in short term US Treasuries, all of this being audited on a monthly basis (currently by Deloitte).
Binance about Circle
Circle transparency report
Parameters
Vaults
USDC
Secure Threshold: 155%
Premium Redeem Threshold: 115%
Liquidation Threshold: 105%
Collateral Ceiling: 2,000,000 USDC
Minimum Collateral: 1,550 USDC
qUSDC
Secure Threshold: 155%
Premium Redeem Threshold: 115%
Liquidation Threshold: 105%
Collateral Ceiling: 75,000,000 qUSDC (= 1,500,000 USDC at an initial exchange rate of 50:1)
Minimum Collateral: 77,500 qUSDC (= 1,550 USDC at an initial exchange rate of 50:1)
Lending
Secure Loan-To-Value: 65%
Liquidation Loan-To-Value: 87%
Supply Cap: 2,000,000
Borrow Cap: 2,000,000
Interlay is proposing to add USDC, a stable coin, to its DeFi ecosystem.
USDC will be easily available on Polkadot, and Interlay should not miss the opportunity to tap into this source of liquidity and potential new user base coming from Binance.
This proposal will register USDC as an asset on Interlay, create a USDC lending market, enable USDC as collateral for borrowing, create a USDC/INTR pool, and add USDC as collateral asset for vaults, operating the iBTC bridge.
USDC has a proven track record of more than 5 years, with a maximum draw-down of about -12% in March 2023.
USDC is 1:1 backed with USD that is being held in bank accounts or invested in short term US Treasuries, all of this being audited on a monthly basis.
The proposal has specific parameters for Vaults and qUSDC, including secure threshold, premium redeem threshold, liquidation threshold, collateral ceiling, and minimum collateral.
The proposal has specific parameters for Lending, including secure loan-to-value, liquidation loan-to-value, supply cap, and borrow cap.