Curve LP Token Onboarded As Collateral
On March 11th 2022, as part of the weekly Maker Governance Cycle, MKR holders voted to onboard Curve stETH-ETH LP tokens as a new collateral to the Maker Protocol as the CRVV1ETHSTETH-A vault type.
What does this mean for you?
You can now borrow DAI on Oasis.app against your Curve LP token. When you deposit your Curve stETH/ETH LP token in Oasis.app, you can generate DAI, and use them to increase your exposure to the LP token, or use this liquidity for other venues.
While the variable fee is 3.5% on the DAI, the return is currently higher.
You get yield from:
- The LP token itself (swapping fees in Curve)
- The staking of ETH (staking returns)
- Lido rewards: to be claimed by the users. For this we are working on a UX to claim it directly from Oasis.app (LDO liquidity mining rewards)
Onboarding Details
Initial Collateral Parameters
- Underlying Collateral: Curve stETH-ETH LP tokens.
- Stability Fee: 3.5%*
- Liquidation Ratio: 155%
- Maximum Debt Ceiling (line): 3 million DAI*
- Target Available Debt (gap): 3 million DAI
- Ceiling Increase Cooldown (ttl): 8 hours
- Debt Floor (dust): 25,000 DAI*
Liquidation Parameters
- Auction Price Function (calc): Stairstep Exponential Decrease
- Price Change Multipler (cut): 0.99
- Price Change Interval (step): 90 seconds
- Auction Price Multiplier (buf): 1.30
- Liquidation Penalty (chop): 13%
Limits
- Local Liquidation Limit (ilk.hole): 3 million DAI
- Maximum Auction Drawdown (cusp): 0.4
- Maximum Auction Duration (tail): 140 minutes
- Breaker Price Tolerance (tolerance): 0.5
You can read more details about the proposal and reasons here.
Getting help
If you experience any issues with your Vault or have any questions regarding your Vault or Oasis.app in general, you can browse our Knowledge Base, contact us at support@oasis.app or the Oasis Channel on Discord.
March 16, 2022
