RariCapital

Summary

Whitelist Float Protocol as Fuse Pool Creators

If passed, this proposal will enable Float Protocol to create Fuse pools that utilise FLOAT and/or BANK as collateral. Fuse would be the first platform to support borrowing and lending of FLOAT and BANK.

The Whitelisted address with control would be the operations Multisig: 0x383dF49ad1f0219759a46399fE33Cb7A63cd051c

Background

Float Protocol is building the decentralised monetary system of the future. At the heart of it is the FLOAT token, a low-volatility floating currency for web3 - #DeFiMoney. FLOAT tracks a Basket of crypto assets rather than chasing a dollar peg. The price of FLOAT is stabilised by regular profitable Dutch Auctions which expand and contract the supply of FLOAT as necessary. This leads to a low-volatility stable currency, making it the perfect collateral while still being capital efficient. But, it also gives the user a currency that protects their digital purchasing power and an escape from the great monetary inflation of fiat currencies and dollar-pegged stablecoins. BANK is a utility and governance token of Float Protocol. BANK captures the volatility of FLOAT, as well as capturing any speculative demand. In return, it supports the price of FLOAT in times of reduced demand. The initial supply of BANK was issued by a democratic launch designed to achieve wide distribution across different crypto communities and to incentivise ownership by users who are active participants in other decentralised protocols. Any excess demand for FLOAT and the Basket of crypto assets to overflow is used to burn BANK.

Contracts and price feeds

BANK: Float Protocol: BANK Token | 0x24A6A37576377F63f194Caa5F518a60f45b42921 FLOAT: Float Protocol: FLOAT Token | 0xb05097849bca421a3f51b249ba6cca4af4b97cb9

FLOAT Price Feed: FLOAT-USDC low-fee pool on Uniswap v3 TWAP Bank Price Feed: BANK-ETH Sushiswap TWAP

Initial pool parameters

Initially Float Protocol would consider the following upgradable pools that will support FLOAT and BANK token consisting of: FLOAT, BANK, ETH, DAI, USDC. Example pool parameters would be:

Upgradeable: Yes Close Factor: 50% Liquidation Incentive: 15% FLOAT Collateral Factor / Reserve Factor: 60% / 10% BANK Collateral Factor / Reserve Factor: 60% / 10% ETH Collateral Factor / Reserve Factor: 60% / 10% USDC Collateral Factor / Reserve Factor: 60% / 10% DAI Collateral Factor / Reserve Factor: 60% / 10%

Float Protocol would be willing to explore the use of asset caps on Rari Fuse as an additional measure to maintain liquidity on DEXs. Additionally, Float Protocol would look to have FLOAT integrated with other pools such as Olympus DAO’s Pool Party following Olympus DAO’s community call on Thursday July 29 at 10PM UTC (6p ET, 3p PT) alongside Rari Capital, Fei Labs, Alchemix and Reflexer.

Motivation

The unique selling point of having Float Protocol on Fuse is that FLOAT is excellent collateral. FLOAT has the characteristics of a stablecoin with some market trailing trends. This would mean less liquidations while still being capital efficient. A purely novel offering in DeFi allowing those to borrow and lend with currency that tracks the economy in which they carry out their DeFi activities. Users can put dollar pegged stable coins regulatory fears on hold as they would have the opportunity to get access to truly decentralised and low-volatility capital. BANK offers the other side of the same coin, giving borrowers and lenders the opportunity to take advantage of its volatility relative to FLOAT if they so please.

Following on from Community requests and expressions, this would be the first lending platform of BANK and FLOAT which combined have a market cap of ~$30M, access to lending will only increase both the market cap and trading volume of both FLOAT and BANK. Furthermore, fellow FLOATers and BANKsters would be attracted to Rari Fuse as the initial primary lending platform for FLOAT and BANK

Risks

As FLOAT is a low market cap currency at the time of writing, price feed risk is the main risk. Large movements in the market could lead to TWAP price feeds becoming stale very quickly. However as one would expect liquidity increase with the introduction of a lending pool this price feed risk should reduce over time. Moreover, Dutch Auctions of the Protocol can be increased in frequency giving arbitrageurs more opportunity to level out any large price deltas in a profitable manner.

Links

Website: https://floatprotocol.com/ Backup site: https://ipfs.io/ipns/floatprotocol.eth/#/pools Litepaper: https://observablehq.com/collection/@floatcoder/float-protocol-litepaper Medium: https://medium.com/@floatprotocol Discord: https://discord.gg/nVCZacJJqM Telegram: https://t.me/officialfloatprotocol Telegram (中文): https://t.me/floatprotocolCHN Analytics: https://duneanalytics.com/Float/Float-Protocol Docs: https://docs-float.gitbook.io/docs/ Github: https://github.com/FloatProtocol/ Twitter: https://twitter.com/FloatProtocol Forum: https://forum.floatprotocol.com/ Governance: https://snapshot.org/#/snapshot.floatprotocol.eth

The Vote

Vote Yes, to whitelist Float Protocol as Fuse pool creators (managed by the Float Protocol operations multisig 0x383dF49ad1f0219759a46399fE33Cb7A63cd051c).

Vote No, to do nothing.