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DeFi: 2022 H2 community update
1mo ago
7 Comments

Now that iBTC has finally launched, the next step is to launch integrations with Polkadot parachains. As a decentralized network, decisions lie with the community - and so we want to share all information and opportunities we are aware of so far to initiate discussions.

Goal:

  • Share a regular overview of the integration roadmap to increase community awareness
  • Get feedback as early as possible (also for integration partners) to ensure fast execution

Acala

The Acala parachain is currently not fully operational as an aftermath of the aUSD incident. Follow the latest updates here: https://acala.discourse.group/c/acala/16

Paused

  • iBTC/aUSD pool: currently halted due to aUSD incident

Targets

  • iBTC as aUSD collateral
    • Requirements: liquidity on iBTC/aUSD pool;
    • Status: paused until aUSD recovers; conversations with Gauntlet re. parameterization commenced;

Exploration


Moonbeam

Live

WIP

  • iBTC pool on Beamswap

Targets

  • Curve Finance: multiple interesting options available, including but not limited to:
    • Interlay ecosystem 3pool: iBTC/INTR/DOT
    • Polkadot version of the infamous ‘tricrypto’ pool: iBTC/DOT/USDx (USD stablecoin is open for debate, USDT and aUSD being options)

Exploration

  • iBTC on Moonwell money market:
    • Requirements: enough iBTC liquidity on Moonbeam for flashloan liquidations on Moonwell; Chainlink price oracle (this one is a blocker)
  • Further Curve Finance pools:
    • Polkadot L1 index pool: Containing tokens of largest parachains: ACA, GLMR, INTR, PARA, ASTR
    • BTC 3pool: iBTC/wBTC/renBTC (other BTC versions to be live on Polkadot first)
  • iBTC on Midas Capital money market (https://www.midascapital.xyz)
  • iBTC and INTR as collaterals on DAM Finance lending protocol (https://dam.finance)

Parallel Finance

XCM channel is WIP, full integration ETA 1-2 weeks (incl. bridge UI). Governance proposal open here: https://interlay.subsquare.io/democracy/referendum/19

Target

  • INTR pool on Parallel DEX
    • Requirements: XCM channel open
    • Status: Currently assessing tokens pairs (will be put up for community feedback). Needed so Parallel users can get INTR to pay for iBTC bridge and XCM fees.
  • iBTC on Parallel DEX
    • Requirements: XCM channel open
    • Status: Currently assessing token pairs and running calculations. Will be put up for community feedback.

Target

  • iBTC as a borrowing asset on the Parallel money market
    • Requirements: enough iBTC liquidity on Parallel DEX so that safe liquidations are possible;

Astar

XCM channel is WIP, full integration ETA 2-3 weeks (incl. bridge UI). Governance proposal open here:
https://interlay.subsquare.io/democracy/referendum/16

Targets

  • iBTC on Arthswap DEX (https://app.arthswap.org/#/swap)
    • Requirements: Astar XCM channel open.
    • Status: Pairs are being explored and will be put up for community feedback.

Exploration


Playbook for iBTC launch on new (para)chains
The suggested order of execution is as follows:

  1. Launch a decentralized bridge (e.g. XCM)
  2. Launch INTR pool, so users of the new chain can pay for iBTC mint/redeem and bridge fees. Preceded by community poll re. pairing asset
  3. Launch iBTC pool and create deep liquidity. Preceded by community poll re. pairing asset
  4. Launch money market to enable lending (needs liquidity for liquidations)
  5. Explore further Dapp integrations, prioritizing unique use cases

Call for Feedback
Ultimately, the decision about integrations lies in the hands of the community. Most DEXes and Dapps will be requesting incentives from the Interlay treasury, which requires consensus among INTR stakers. In consideration of time and effort invested, sharing feedback as early as possible is important to achieve fast execution (i.e., have an overall idea of what we all want before a Dapp makes a proposal for incentives).


How?

  • Comment on this post
  • Open dedicated discussion posts for specific integrations and share your opinion
Edited
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Thanks a lot for the detailed roadmap! It's exciting to see what other integrations are in the works. It seems like we should pair KINT/INTR with their network token (like KINT/MOVR) for best liquidity, and then pair iBTC with the highest market cap token (DOT) for max stability. Let's only pay DEX incentives from treasury while we have to, with the eye on eventually providing Treasury Owned Liquidity eventually instead.

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1mo ago

Treasury-owned liquidity is definitely something that is very interesting and can be very useful.
There are, however, some technical blockers - for now. To be able to control LP shares, we need:

  1. (Best case) An XCM version that allows arbitrary function calls on other parachains, OR
  2. Custom code on the DEX parachains / Dapps that trigger some actions when funds are deposited from treasury (e.g. if assets deposited into account X: deposit into pool and send LP tokens back to treasury; if LP tokens deposited into account Y, withdraw and send assets back to treasury, ...), OR
  3. AMM on Interlay that allows treasury to simply purchase LP shares from other DEXes (by listing them for trading).

No 3 is most likely to be executed first - plus also allows to do more customizable treasury LP-ing on the native AMM.

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I like the idea of having a native DEX on Interlay/Kintsugi!

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Great to have a project that gives such transparent updates!

What about if you had an NFT for early adopters to help galvanise the community - This could be a simple one in singular or one that evolves as you mint more ibtc etc - or instead to help expand partnerships it could be a Kanaria add-on with RMRK, or a badge on phalaworld or a Youdle integration, or a maybe exosama to get a big community involved...or just one NFT that gives you visual benefits across all these projects to show the benefit of an interconnected web 3, appreciate you may be concentrating on the tech/partnerships at the moment might be easier if there was a strong community around the project also - ibtc is so great feel like it should be a bigger deal, almost common good chain levels of importance

The NFT could have benefits or evolve also, for example give a bonus yield in INTR or KINT etc or a monthly raffle etc for 10000 KINT etc to Top 3 holders that have been active in utilising their ibtc i.e. not just idle etc.

Mellow Yellow

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@wdAm...T1h7 Not sure about this, feels like it will be a distraction from the core product and we need to link with other dexes for partnership/marking purposes

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In our vault, we split the INTR rewards internally between who is depositing DOT and who is minting iBTC from our vault so that we can get an optimum efficient ratio - what if you changed the code / UX so that the Vault operator can 'bribe' to people to mint ibtc of their vault? i.e each vault operator can set a % of how much of their vault INTR tokens automatically be distributed to the people that mint their ibTC on a weekly basis say.

Right now there is 20 btc+ of capacity so this might help increase adoption etc? If there was a way to earn yield on BTC then people from outside the eco probably would come including people like Nexo etc perhaps. Also, you could make these vested also so its not sold immediately..

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1mo ago

@wdCa...8ov2

Considering the INTR rewards are a bootstrap, the idea of making part of them vested is interesting. There is some difficulty in implementation (there can only be 1 vesting schedule per account) but something worth exploring. I think a part would need to be liquid though so operators can cover costs and take profits.

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