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StaderLabs has proposed adding sFTMX, an ERC20 token representing staked assets and rewards, as collateral to the Aave v3 Fantom market. This move is expected to increase staking participation, unlock new liquidity for DeFi, and promote Fantom's decentralization by enabling staking with multiple validators.
StaderLabs, a multi-chain staking infrastructure provider, has proposed the addition of sFTMX as collateral to the Aave v3 Fantom market. sFTMX is an ERC20 token that represents staked assets and accrued rewards, audited by Halborn and Peckshield, with a calculated price feed from Chainlink expected in 3-4 weeks. The token has built significant liquidity on Fantom since its launch, with liquidity pools on Beethoven X and Spookyswap.
The addition of sFTMX would allow FTM holders to participate in both staking and DeFi, unlocking new liquidity from staking for DeFi, including Aave. It would also promote the decentralization of Fantom by allowing staking with multiple high performing validators. StaderLabs expects the staking participation of the community to increase as sFTMX opens up staking and DeFi to users on Fantom.
Vibin highlighted the benefits to the Fantom and Aave community, stating that around 12.7 million FTM has been staked to mint sFTMX on Stader within a month of its launch. They believe that sFTMX will be a beneficial addition to Aave v3 Fantom markets, unlocking several borrowing use cases including leveraged staking, borrowing other assets with sFTMX, and potentially several DeGen strategies. The proposed risk parameters for sFTMX include a max LTV of 25%, a liquidation threshold of 45%, and a liquidation penalty of 15%. They are open to feedback and updates on these parameters from the Fantom and Aave community.
Posted 2 years ago
Last reply 2 years ago
Summary updated 2 months ago
Last updated 04/12 15:05