We’re proposing to see collateral support of xSushi support on Liqee
This will help us Sushi stakers to enhance our capital efficiency, as we will be able to make lending yields on top of staking yields. Integration with Liqee will help Sushi holders and stakers provide even more capital to the system through repeated borrowing and lending utilizing our staked assets. I’m sure this will be a win-win for Sushi too, since it’ll help grow the market size for Sushi.
As a savvy DeFi investor, my fellow investors and I have felt some frustration to see our xSushi being idle. Instead, we could utilize a protocol like Liqee,which is the world’s first lending protocol for liquid staking assets (PoS staking tokens, DeFi staking tokens, etc). They’re deployed on Ethereum, BSC, and Arbitrum.
The benefit of integrating with Liqee would be that it’ll allow us to take advantage of recursive leverage, i.e assuming xSUSHI lists as a collateral, we’d be able to use xSUSHI to borrow additional SUSHI for increased capital efficiency.
For those who want to be more conservative, they could simply lend it out to gain yields on lending, which would be an attractive additional yield generation that enhances capital efficiency at low risk. Liqee utilizes the lending protocol built by dForce, which was built on one of the most stringent risk control parameters, and have been extensively audited by 4 top global audit firms (Trail of Bits, ConsenSys Diligence, CertiK, and Certora (for formal verification).
Liqee seems to have emerged as a popular place for parking liquid staking tokens; I saw they currently support rToken from StaFi, which has rETH (similar to stETH, but it’s cToken model not rebase model) and also rATOM and rDOT. The platform has grown rapidly since it’s launch a few weeks ago to a total Supply and Borrow combined of close to $30mil.
They are also running liquidity mining incentives with StaFi:
I think Liqee is great fit for SUSHI to integrate with.Given the success of StaFi’s rTokens on Liqee (95% rATOM, rDOT and growing rETH are supplied on Liqee for leveraged lending), xSUSHI will benefit greatly as well.