1/ What's New With @tapioca_dao?
In this episode of $TAP Talk, the whole Pearl Labs family joins to discuss toxic liquidations, dynamic liquidation incentives, dynamic closing factors, Omnichain $GLP, & more.
Read our notes below 👇
In this episode of $TAP Talk, the whole Pearl Labs family joins to discuss toxic liquidations, dynamic liquidation incentives, dynamic closing factors, Omnichain $GLP, & more.
Read our notes below 👇
2/ (Tapioca is the first omnichain lending & borrowing protocol built on LayerZero. Tapioca enables assets to seamlessly flow between networks in a trustless fashion, bringing borderless liquidity to DeFi.)
3/ (Will be available on Arbitrum, Optimism, Polygon, Avalanche, & Ethereum Mainnet on launch.)
4/ Toxic Liquidations
•Bad debt of Aave got worse when Avraham Eisenberg tried to exploit the protocol because of Aave’s liquidation logic.
•Toxic Liquidation Spirals paper goes over in detail how Aave could have managed to survive the exploit w/ lesser bad debt to Aave.
•Bad debt of Aave got worse when Avraham Eisenberg tried to exploit the protocol because of Aave’s liquidation logic.
•Toxic Liquidation Spirals paper goes over in detail how Aave could have managed to survive the exploit w/ lesser bad debt to Aave.
5/ •Halting liquidations would play a huge role in not accruing bad debt during an exploit for a DeFi protocol like Aave.
6/ Dynamic Liquidation Incentives
•Incentive becomes lesser attractive to arbitrage the liquidations when LTV=1.
•If all the market contracts are segmented, it would prevent bad debt from occurring.
•Incentive becomes lesser attractive to arbitrage the liquidations when LTV=1.
•If all the market contracts are segmented, it would prevent bad debt from occurring.
7/ •There will be a min & max rate that will grow linearly for a particular market
8/ Variable Interest Rates
•First omnichain stablecoin USD0 will not have a borrowing cap.
•Tapioca will have variable interest rates according to demand for the asset borrowed.
•First omnichain stablecoin USD0 will not have a borrowing cap.
•Tapioca will have variable interest rates according to demand for the asset borrowed.
9/ •Also a protection mechanism, variable rates will forcibly unwind particular collateral out of the system
•Want to issue debt in $ETH to mint USD0 into supply.
•There will be a minimum & maximum rate that will grow linearly for a particular market.
•Want to issue debt in $ETH to mint USD0 into supply.
•There will be a minimum & maximum rate that will grow linearly for a particular market.
10/ •Stablecoin has to be collateralized w/ some asset & would prefer it to be $ETH than other altcoins.
11/ Dynamic Closing Factors
•Liquditiy should be factored into consideration like low LTV is considered.
•Tapioca will have partial liquidations.
•Liquditiy should be factored into consideration like low LTV is considered.
•Tapioca will have partial liquidations.
12/ Omnichain GLP
•Mint $TGLP w/ Avalanche $GLP or Arbitrum $GLP, $TGLP will be omnichain that is auto compounding & can be held on any chain.
•$TGLP will have an elastic supply over all the supported chains.
•Mint $TGLP w/ Avalanche $GLP or Arbitrum $GLP, $TGLP will be omnichain that is auto compounding & can be held on any chain.
•$TGLP will have an elastic supply over all the supported chains.
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