Title: [NIP-30] Onboard LDO as a Collateral Asset on Notional V3
Author(s): Anthias.xyz Team
Submission Date: 30 October 2023
The following is a proposal to onboard LDO as a collateral currency option on Notional V3. The Anthias team thinks LDO 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): LDO / USD | Chainlink
- At least two high-quality audits have been conducted (Link to audit results);
- Yes - Lido has been audited by multiple parties including Certora and Sigma Prime: GitHub - lidofinance/audits
- The token is held by more than 1,000 unique wallets (Link to Arbiscan);
- Yes: Currently held by over 5,886 addresses: $1.85 | Lido DAO Token (LDO) Token Tracker | Arbiscan
- The current float (circulating supply/max supply) is above 25% (Link to Coingecko);
- Yes: LDO float is currently over 89%: https://www.coingecko.com/en/coins/lido-dao
- 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: LDO currently has over $12.2M in TVL on Uniswap: Uniswap Interface
1. Provide a brief overview of the proposed asset and its underlying project.
- LDO, or the Lido DAO Token, is the governance token for Lido, a liquid staking solution for POS blockchains. Lido has been live since December of 2020 and has since taken a large share of the liquid staking market on Ethereum and has since been expanding to other chains.
2. How is the asset currently used (staking, collateral on other lending protocols, etc.)? Provide relevant activity KPIs.
- LDO is currently a collateral asset on Aave V3’s Ethereum market.
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.
- Lido is the most prominent liquid staking solution by TVL, and its governance token, LDO, meets the criteria outlined in the Collateral Asset Onboarding framework by the Notional Core team to be considered a suitable collateral asset on Notional V3. With a conservative supply cap to start, this should prove a safe and beneficial asset to onboard to Notional V3.
4. Provide information regarding the organization behind the project.
- Lido launched in December of 2020. It currently has a TVL of over $15B at the time of writing this proposal. It currently leads the liquid staking providers, with the next closest competitor having $2B TVL.
5. Provide information regarding past hacks or major bugs and how the team addressed them.
- In September of 2023, Lido acknowledged a vulnerability with the token contracts of LDO and stETH, which they state they have since addressed. Read more here.
6. Provide an overview of the token’s market data.
Market Cap: $1,623,610,909
24H Volume: $63,293,788
LDO DEX Liquidity (DEX Guru):
- LDO has over $12M of DEX liquidity on Uniswap alone at the time of posting this proposal according to Uniswap: Uniswap Interface
4. LDO Volatility (LDO price compared to ETH over past 12 months)
- LDO volatility is 5.77% in the past 24 hours.
5. LDO DEX Slippage
- Slippage for LDO on Arbitrum for a $1M USDC swap is currently too high to be suitable as a collateral type. For this reason, a supply cap should be put in place to make sure liquidations are feasible. As the liquidity for LDO on Arbitrum increases, this cap can be increased / removed.
6. Provide an overview of the token emission schedule and major holders.
- According to Lido Documentation, there is currently no concrete emission/release schedule for LDO tokens residing in the treasury fund, with emissions voted on by the Lido DAO.
The Anthias team would like to gauge sentiment and hear thoughts from the Notional community with regards to onboarding LDO 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, UNI, and LINK on Notional V3.