Proposal to add MKR

Proposal to add MKR

Proposal to add MKR as a capped collateral to Interest Protocol.

Overview

The MKR token governs the Maker Protocol, which is one of the oldest and most battle-tested protocols in DeFi. The Maker Protocol issues the DAI stablecoin, and is one of the only protocols to not suffer technical exploits (there was a design exploit that resulted in some 0-bid liquidation auctions in 2020 that has since been fixed).

This collateral integration will support MKR holders’ ability to delegate MKR to a delegate contract of their choice, which is not available at any other venue.

Interest Protocol already supports CHAI, which is a DappHub token wrapper for DAI Savings Rate Module deposits.

Parameters

Token Address: 0x9f8F72aA9304c8B593d555F12eF6589cC3A579A2
Capped Token address: 0x2c52EE10BD58Efa20FC6ee418BF9085639E8247E
LTV: 70%
Liquidation incentive: 10%
Maximum Cap: 1100 MKR (~$1,000,000 as of writing)
Oracle Address:
Primary oracle: 0xec1d1b3b0443256cc3860e24a46f108e699484aa (MKR/USD)
Secondary oracle: 0x24551a8fb2a7211a25a17b1481f043a8a8adc7f2 (MKR/ETH)
NB: The two feeds above have four common validators out of 19 and 16, respectively
Price deviation:

Liquidity

Market Cap: $826,301,000 (circulating)
Liquidity: $17,500,000 (two combined Uniswap V3 pools)
Coingecko 7-day avg 24hr volume: $64,000,000
Notable exchanges: Coinbase, Binance, Kraken, OKX, Uniswap, etc

Technical risks

  1. Type of contract: ERC20
  2. Underlying asset: Governance Token
  3. Time: November 25, 2017 (~2055 days ago)
  4. Value:
  5. Privileges: Can be minted by governance or excessive bad debt
  6. Upgradability: None

Supplemental Information

Relevant References

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