Demetre (Community) 1-2-10x

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1x NO

OIN Stablecoin

The OIN stablecoin (ONEUSD) is issued by borrowing it against a native token, in this case $ONE, which needs a collateralization ratio of 160%. $ONEUSD is “soft pegged” and relies on the market to arbitrage it to $1 by borrowing more when it >$1 and paying off debt when it is <$1.

The protocol uses liquidations of users’ troves when they drop below 160% collateralization ratio to keep the lending system healthy.

My Opinions

OIN’s mission to build a “multichain stablecoin universe” sounds promising, but under the hood the protocol is fee heavy and struggles to maintain peg.

  • Fee heavy
    • 2% borrowing rate
  • Struggles to maintain peg
    • nUSDO on NEAR
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    • USDO on BSC
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    • ONEUSD on Harmony
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    • aUSDO on Solana
      • This above-peg behavior is likely due to the AstroFarming on Trisolaris. Alameda Research/FTX have heavy Solana ties and was a major investor in OIN.
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A stablecoin that cannot keep peg is not a stablecoin and hurts its broader utility.

2x Alternative - Fork Liquity to create HUSD

Liquity has been successfully forked to other chains (Vesta on Arbitrum, Teddy Cash on Avalanche), allows 0% interest loans and is relatively battle-tested maintaining a tight peg.

10x Alternative - Bring Fei Protocol cross-chain to Harmony and unleash the FeiRari 🏎

Fei has a young, hungry team that exemplifies cooperation and bleeding-edge innovation. If Harmony takes a commanding stake in the TRIBE governance, they could steer developments to spur Harmony-friendly initiatives. (Strategic Note: After the recent Rari exploit, their governance token is currently discounted)

Fei could supercharge Harmony’s DAO ecosystem treasuries and operations via Tribe Turbo.

  • With Tribe Turbo, DAOs could use their treasuries to borrow FEI at 0% interest to create isolated lending markets and collect a portion of the fees from these markets to generate revenue.
  • The DAOs could also borrow stables in their own markets for additional liquidity if needed.

The Fei stablecoin keeps a tight peg with a massive PCV that is censorship resistant.

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Joey Santoro (based in San Francisco) also co-authored the EIP-4626: Tokenized Vault Standard which will allow yield tokens to be easily integrated across the Harmony ecosystem, although it still needs an audit.

2x NO

Engaging with the community too frequently when the entire market is tanking

  1. When people are losing paper positions they are highly emotional and looking to point fingers and direct their anger, often times without patience or reason. I would carefully collect the feedback but ensure responses are measured and strategically timed.
  2. Words carry more weight when the ratio of listening to speaking his high.
  3. The team are humans too, and if they internalize every negative comment and try to respond in real-time those psychological consequences can add up quickly and be a detriment to mental health, and thus productivity.

10x NO

Giving grants to projects that appear to be non-value add without significant documentation from the grantees

The concept of fairness is embedded in the human psyche. People literally kill each other when people cut in line. When the community sees certain projects funded over other projects that appear to be more deserving, it invokes an ancient anger and spite.

1x YES

Bring Alchemix to Harmony to enable safe, self-repaying loans.

Its the perfect protocol to onboard newbies into DeFi. DAOs could also use it to access additional liquidity in a conservative manner.

2x YES

Explorer development to support DeFi activity readability.

Cheap fees means more transactions. It’s imperative to be able to export this activity so people can feel comfortable transacting freely knowing they don’t have to worry about interpreting records later.

10x YES

Mobile minting of NFTs

This would 10x onboarding at events and increase the stickiness of people using Harmony due to immediately having an asset on-chain.

Curve factories to invoke Curve Wars on Harmony to flood the chain with liquidity.

Liquidity starts with incentives. The veToken and composability of LPs model has proven to be wildly effective in bringing in liquidity and driving the entire DeFi ecosystem.