Proposal to add ZRX

Governance
#1

Proposal to add ZRX

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

Overview

The ZRX token is the governance token of the 0x Protocol. It was one of the first DEX governance tokens ever deployed (2017).

The proposed parameters and cap are set conservatively given relative low DEX liquidity. To be revisited if liquidity increases.

Parameters

Token Address: 0xe41d2489571d322189246dafa5ebde1f4699f498
LTV: 50%
Liquidation incentive: 15%
Cap: 1m (~$250k)
Oracle Address: [To be deployed]
Primary oracle: Chainlink ZRX/ETH
Secondary oracle: Uniswap v3 ETH/ZRX
Price deviation: 20%

Liquidity

MCAP: $210m
Uniswap v3 liquidity: $600k
Coingecko 7-day avg 24hr volume: $10m
Notable exchanges: Coinbase, Binance, OKX

Technical risks

  1. Type of contract: governance token
  2. Underlying asset: governance token
  3. Time: +4 years
  4. Value: control of the 0x protocol and 0x Treasury
  5. Privileges: None
  6. Upgradability: None

Volatility Data

I wasn’t able to pull and compute in-depth volatility data (please integrate if you have data and calculations handy), but I’ve typically relied on cryptowatch’s correlations. One can notice that correlation over 1yr is in line if not better than other assets in the Vault.

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3 Likes
#2

Great to see ZRX interested in a humble venue like IP!

Out of curiosity, would 0x integrate the IP contracts (specifically the USDC<>USDi conversion) if ZRX was supported by Interest Protocol?

1 Like
#3

It’s definitely possible, the team is busy right now with adding AAVEv2 deposit paths but since interest uses similar interfaces to PSM it shouldn’t be too big of a technical lift.

It’s always mostly about prioritization, and that comes with the demand from USDi<>token markets and the liquidity USDCi<>USDC would add to multi-hop paths. On the liquidity side adding ZRX should contribute to increase (slightly) USDCi in circulation I guess?

DEX activity doesn’t seem super busy at the moment but I personally hope it’ll heat up

https://etherscan.io/token/0xd909c5862cdb164adb949d92622082f0092efc3d#tokenTrade

#4

Hello @PaperImperium - did you get a chance to review this? I see you’re proceeding with adding other assets as collateral.
Thanks!

1 Like
#5

Thanks for following up! It’s not up to me (I mostly just point people towards the correct resources and the like). You’ll need to find a delegate with enough IPT power to get the proposal pushed. Right now there’s a backlog bc each delegate can only do 1 at a time, and only one IPT holder/delegate is pushing proposals so far.

Is there someone waiting in the wings to borrow against ZRX? If so, maybe they could hop in here to say so and maybe that could get things moving.

2 Likes
#6

Thanks for proposing that, I’ve shared it in the 0x Discord to see whether anyone else would be interested.
In the meantime, I’d be happy to borrow ~10k USDCi against a position (roughly $20k worth of ZRX based on the proposed LTV)

1 Like
#7

Hey thanks @mintcloud to put this proposal up. I am interested on this and I am able and happy to borrow 1K USDCi with ZRX colateral.

2 Likes