Liqee

Collateral proposal: Curve LP tokens

Curve.fi has a 5 day old pool that is a mix of two staked ETH tokens: Lido’s wstETH and Rocketpool’s rETH (Curve.fi). I think this could make a really interesting collateral on Liqee. These tokens earn ETH staking APY and also earn trading fees.

Importantly, this is not the same rETH as Stafi’s rETH. We should talk about adding it as collateral, too.

There are some other similar pools (all assets being ETH or staked versions of ETH) such as a pool for ETH and Stafi’s rETH at Curve.fi (yes there are two rETHs now). The risks for this type of pool shouldn’t really be any different than having these tokens as collateral here by themselves.

Then there are pools that are ETH and other types of locked ETH such as Alchemix’s alETH. I’m not sure how Liqee feels about those since they aren’t technically staked ETH.

Just like Liqee uses ETH’s price for staked ETH, I think we can safely do the same for the LP tokens. We’d just need the Oracle to also factor in the LP token’s “virtual price” (since the value grows slightly as trading fees accrue).

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Maker is doing something similar here: https://twitter.com/MakerDAO/status/1504102461853863939