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MarcZeller proposed the integration of the STG token into the Ethereum Aave v3 Liquidity Pool, aiming to enhance asset diversification and create new revenue streams. The proposal, now at the Snapshot stage, includes conservative risk parameters and has received community support, with ChaosLabs recommending a supply cap of 10,000,000 STG, a borrow cap of 5,500,000 STG, and a debt ceiling of $3M.
The discussion revolved around the proposal by MarcZeller to onboard the STG token to the Ethereum Aave v3 Liquidity Pool. The STG token, which is the utility and governance token for the Stargate protocol, has processed transactions exceeding $3.4 Billion in the past month. The integration of STG into Ethereum Aave v3 is expected to enhance asset diversification and create new revenue streams for Aave. The proposal includes conservative Loan-to-Value (LTV) and debt ceiling parameters to limit protocol exposure. The proposed risk parameters include a 35% LTV, a 40% liquidation threshold, and a 10% liquidation penalty among others. The proposal is now at the Snapshot stage with voting starting soon1,3.
Gauntlet expressed alignment with the recommendations for STG2. ChaosLabs conducted an analysis following the successful Snapshot for the proposal. The analysis revealed an average market cap of STG over the past 180 days of $120M, and an average daily trading volume of $20M. They recommend a conservative launch with a 40% Liquidation Threshold due to the asset’s relatively low market cap. They also recommend an initial debt ceiling of $3M, considering the probability of an extreme price drop for STG as High4.
The recommended parameters for the integration of STG into Ethereum Aave v3 were also outlined by ChaosLabs. These include a supply cap of 10,000,000 STG, a borrow cap of 5,500,000 STG, and a debt ceiling of $3M among others. The proposal has received support from the community and is now awaiting the voting process4.
Posted 3 months ago
Last reply 2 months ago
Summary updated 2 months ago
Last updated 03/12 08:00