XLEND - a money market for UNI-LP tokens

Name of Project

XLEND - a money market for UNI-LP tokens

I’m not married to this name, it’s pretty lazy.

Ticker for Token

XLEND

1) In one sentences or less, describe your token. This isn’t the time to get wordy, just to the point!

There are millions of dollars of idle capital sitting in XIO/ETH UNI-LP tokens; these should be put to use by being used as collateral!

2) Do you have a video to introduce yourself or explain the token? Upload it here and share the link here. (Not required)

3) Do you have a logo for your token? If so, upload it here. (Not required)

4) How does your token work? Be as detailed as possible

The token itself is honestly a pretty small piece of the puzzle here. My initial idea was that XLEND token holders could be eligible to a percentage share of the interest generated by loans taken out on the platform. This yield could be claimable through the existing claims dapp.

5) What problem is your token aiming to solve? How will this positively impact the crypto industry?

Many XIO Citizens have a substantial amount of their capital tied up in the XIO/ETH Uniswap pool, which makes it practically illiquid. If we could use this capital as collateral to borrow against (without losing our XLP multiplier or Token Studio allocations), it could be utilized much more effectively.

This could be applied in a much wider scope as well; as far as I know there’s no general market for borrowing against UNI-LP tokens. This is a very basic money lego, and the market is huge and growing.

6) What was the inspiration of this token? How did you think of it?

I’ve got a substantial amount of my portfolio tied up in XIO-ETH UNI-LP tokens, and I can’t do anything with them! :laughing:

7) Are there any projects out there doing something similar?

AAVE had/has a Uniswap market in their v1 app, but for some reason it wasn’t very popular. They only support(ed) a few major pairs, so there may have been more lucrative options for those tokens available (yield farming).

Maker is working on it: Is it realistic to have uniswap LP tokens as collateral anytime soon? - Governance - The Maker Forum

8) What phase is the token in? Explore vs. Build vs. Launch vs. Scale. (If there has been no coding yet, your token is in the explore phase)

Explore.

9) Will this token be inflationary, deflationary, fixed, or dynamic token supply?

TBD. It could be inflationary to incentivize borrowing/lending in the initial phase.

10) How long do you think it would take to build a minimal viable token?

This would depend on whether or not there are any existing lending contracts/frameworks that could be adapted without too much work. Realistically, this is probably a fairly high-effort undertaking. I don’t know enough to give an estimate.

11) What skills do you have that would help bring this token to reality? (ex: Marketing, Development, Branding, etc)

Testing/QA, idea development and general feedback.

12) Are there any inherent weaknesses or obstacles to building this token? Any items you still need to figure out?

It’s high risk and fairly complex. Audited and seemingly solid lending platforms have been exploited before, and the target could be a substantial portion of the main XIO liquidity pool.

There might be regulation issues?

If you want to share your Twitter/Telegram handle here for people to reach out and discuss this idea with you, post them below.

This is where you can put anything you want that was not directly asked above! Anything and everything related to your token idea can go here. Any files, links, info, etc

One big unknown for me that I haven’t had the time to explore is whether/how FLASH liquidity could be tied in to this. Worth pondering!

So here’s the $FLASH tie-in. On the lender side, let’s say you can flashstake into a DAI/UNI-LP lending pool. The more free capital is in the pool, the lower the interest rate you get. Let’s say we used fixed term interest; the lenders can get their interest paid up front just like in normal flashstaking.

Internally, there’s a representation of the interest rate each day in the future based on the stakes currently provided. The interest rate goes up and down whenever stakes end and begin.

On the borrower side, the interest rate is fixed and provided up-front based on the length of the term and the predicted interest rate on each day of the term.