Title: [NIP-29] Onboard LINK as a Collateral Asset on Notional V3
Author(s): Anthias.xyz Team
Submission Date: 30 October 2023
The following is a proposal to onboard LINK as a collateral currency option on Notional V3. The Anthias team thinks LINK would prove valuable for the Notional community as a collateral asset and thus would like the community to consider & discuss onboarding it as a collateral type.
- Token contract address (Arbiscan)
- Project Website
- Project Github
- Social media/community channels
- Protocol Analytics Dashboard (Dune)
- The asset is an ERC-20 token (link to Arbiscan);
- The asset has been traded for at least 3 months (link to Coingecko);
- A sufficiently robust Chainlink oracle (verified tier) for the asset exists (link to https://data.chain.link/);
- Yes (verified tier): LINK / USD | Chainlink
- At least two high-quality audits have been conducted (Link to audit results);
- The token is held by more than 1,000 unique wallets (link to Arbiscan);
- Yes: Currently held by over 299,000 addresses: $11.48 | ChainLink Token (LINK) Token Tracker | Arbiscan
- The current float (circulating supply/max supply) is above 25% (link to Coingecko);
- Yes: LINK float is currently over 55%: https://www.coingecko.com/en/coins/chainlink
- The token has more than $2m of on-chain DEX TVL (Mainnet) or more than $500K of on-chain DEX liquidity on a Layer 2 chain where a Notional deployment exists (link to https://info.uniswap.org or Balancer);
- Yes: LINK currently has over $17M in TVL on Uniswap: Uniswap Interface
1. Provide a brief overview of the proposed asset and its underlying project.
- According to Chainlink’s developer docs, “LINK tokens are used to pay node operators for retrieving data for smart contracts and also for deposits placed by node operators as required by contract creators.” Chainlink node operators are required to stake their LINK tokens.
2. How is the asset currently used (staking, collateral on other lending protocols, etc.)? Provide relevant activity KPIs.
- LINK is currently used for staking by Chainlink node operators. It is also a collateral asset on multiple lending platforms including Compound V3 and Aave V3.
3. Detail why you believe the project should be added to Notional either as a collateral asset or as a tradable asset and the potential benefits of doing so. Explain why you think the demand for this asset is sufficient to list it on Notional.
- Chainlink is the most well-known oracle platform, and its native token LINK is an asset that meets the criteria outlined in the Collateral Asset Onboarding framework for Notional V3. LINK is also a collateral asset on multiple other lending platforms, and Notional V3’s launch on Arbitrum could prove to be a prime opportunity to capitalize on LINK lending liquidity on Arbitrum.
4. Provide information regarding the organization behind the project.
- Chainlink’s team is global and public. According to Chainlink documentation, over 1,700 Web3 projects have integrated Chainlink services. Chainlink is known for security and resilience.
5. Provide information regarding past hacks or major bugs and how the team addressed them.
- Chainlink has occasionally come under scrutiny for oracle manipulations that have led to or resulted in protocol exploits. This does not necessarily affect the LINK token directly, but it is something for the Notional community to consider.
6. Provide an overview of the token’s market data.
Market Cap: $6,258,027,243
24H Volume: $1,418,088,244
LINK DEX Liquidity (DEX Guru):
- LINK has over $21M of DEX liquidity at the time of posting this proposal according to DEX Guru: DexGuru
4. LINK DEX Slippage
- LINK slippage for a 1M USDC swap is currently about 2.43%.
5. Provide an overview of the token emission schedule and major holders.
- According to Defillama Unlocks, there are about 100M LINK left to be unlocked. These tokens will be granted to the company behind Chainlink. The tokens are vesting and released linearly until October of 2028.
The Anthias team would like to gauge sentiment and hear thoughts from the Notional community with regards to onboarding LINK as a collateral type to Notional V3. Please share thoughts/questions in the comments of this forum post, and feel free to reach out to 0xBroze (@0xBroze on Discord or @OxBroze on Telegram) with any questions.
Anthias is a risk management organization that also builds tools for easily monitoring liquidation risk for DeFi borrowing/lending markets. The Anthias team has shipped multiple grants for Euler, Aave, Compound, and more. We also recently posted the collateral asset onboarding proposals for cbETH, GMX, ARB, RDNT, and UNI on Notional V3.