The Quicksilver team proposes to integrate qATOM as collateral for minting IST, the Inter Protocol stablecoin. qATOM is a liquid staked token of ATOM, provided by Quicksilver to flourish throughout the Cosmos ecosystem. This proposal offers users the chance to simultaneously benefit from both Quicksilver’s innovations in liquid staking provision whilst leveraging IST.
Liquid Staking with Quicksilver
Liquid staking via Quicksilver enables ATOM holders to earn staking rewards while maintaining the liquidity of their tokens, facilitating active participation in DeFi activities. This approach aligns with the decentralization ethos of the cosmos community, offering users control over their assets and investment strategies. Our goal is to provide liquid staking whilst retaining native staking features.
We are pushing the boundaries of liquid staking provision by introducing groundbreaking unique features that redefine user autonomy and flexibility, whilst ensuring ecosystem integrity:
- Signaling Intent: Allows delegators to select validators across Cosmos, enhancing user sovereignty in liquid staking.
- Cross Chain Claims (XCC): Maintains consistent visibility and validation of qAssets across chains, pivotal for asset tracking and governance integrity. Once Participation rewards has launch defi users will have a new option in which they can claim rewards based on qAsset usage other than the current compounding model we see today. In this case, users who use their qATOM as collateral on IST will receive qAsset participation rewards as the Quicksilver can track asset ownership regardless of where it is and award users for using it in a defi activity.
- Participation Rewards: The Quicksilver protocol meticulously monitors the usage and distribution of qAtom by its holders, enabling it to incentivize the minting of IST through targeted rewards.
Quicksilver Defi Portal
We propose a strategic integration of IST into Quicksilver’s DeFi portal, which is designed to offer a seamless and intuitive user experience, enabling easy access and utilization of IST across various decentralized applications within the Cosmos network. This integration is set to significantly enrich the Quicksilver ecosystem by expanding the range of available DeFi activities, including lending, borrowing, and yield farming with IST. By leveraging Quicksilver’s robust infrastructure, we aim to enhance cross-chain capabilities, facilitating interactions between IST and a diverse array of defi dapps across the Cosmos ecosystem. Central to this integration is our commitment to user experience, focusing on a user-friendly interface that simplifies the IST usage process, thereby accommodating the needs and preferences of both novice and experienced participants in the DeFi space. We hope IST will be the first mintable stablecoin on our defi portal.
For price assessment, a methodology akin to existing LST implementation is suggested. Utilizing Agoric’s existing systems, we can accurately determine qATOM’s price, leveraging data from key DEXs and DeFi platforms within Cosmos.
Benefits of qATOM as Collateral:
- Retains staking rewards outside of collateralised Qatom (once XCC is enabled).
- Native to Cosmos, reducing bridging risks.
- Qatom holders are able to signal intent to validators whilst assets are collateralised (once integration work is completed).
- Increases IST liquidity and adoption by expanding its accessibility to a broader user base.
- IST integration on quicksilver defi portal, Strengthens the Cosmos DeFi ecosystem, benefiting multiple communities.
Proposed Parameters for qATOM on Inter Protocol
- Debt Limit: 1000000 IST
- Stability Fee: 0.75%
- Collateralization Ratio: 190%
- Liquidation Ratio: 180%
- Minting Fee: 0.5%
Community Engagement and Feedback
We eagerly invite the community’s perspectives on this proposal. Our goal is to refine the proposal with community input, ensuring its effectiveness and benefit to the wider Cosmos ecosystem.
Our vision is to not only provide more collateral but to expand the utility and distribution of IST in the Cosmos ecosystem by leveraging Quicksilver’s innovative liquid staking solutions. We look forward to a constructive dialogue with the community and ultimately, the successful integration of qATOM as a viable collateral option for IST.
We plan to put forward a formal on-chain proposal post-discussion, incorporating community feedback for a decision by the governance.