Launch goBTC-ALGO Lending Pool

Temperature Check
1

Summary

I propose Algofi launch a goBTC-ALGO Lending Pool to the V2 lending protocol.

Proposal

Launch a goBTC-ALGO Lending Pool.

The motivation is to drive goBTC and ALGO liquidity on the V2 lending protocol. Additionally, the goBTC-ALGO Lending pool would be a capital efficient mechanism for users of the lending protocol and Algofi DEX to earn yield from lending interest and trading fees in the pool.

This utility alone with no additional incentives, could help drive LP liquidity in this underserved market currently on AlgoFi, and Algorand as a whole.

3 Likes
2

i just wonder if the pool is not incentivized with possibly very low liquidity could it be easily exploited to force liquidations?

3

Maybe they could put something in place similar to how they deal with STBL or BTC currently being used now. STBL is pegged to $1 in lending no matter what the price is on a AMM dex.

4

I feel this would dilute the capital a bit too much. There is already not a lot of liquidity for goBTC