[GIP-2] Voting for Allowed Tokens List

ilgiz · December 18, 2021, 5:06pm

Authors

This proposal was drafted as a result of a previous discussion and made with help of @ov3rkoalafied , @vasilysumanov, @mikael, and others.

Discussion

Link to previous discussion in Governance Forum MAIN section.

Summary

Proposal for parameters of initial deployed Allowed Contracts policy

NOTE : if working with the raw numbers, LT for stables would work as follows - a swap from a stablecoin to a stablecoin would cause your Health Factor to majorly decrease, that is because stables are not always stable. As such, minor semi-manual assumptions could be made in order to improve user experience, whereas certain select asset types would be granted higher LT.

Asset	LT for USDC,DAI	Lt for WETH,WBTC
1INCH	77.5	77.5
AAVE	75	75
COMP	80	80
DAI	87.5 for USDC	85
DPI	77.5	77.5
FEI	85	85
LINK	75	75
SNX	77.5	77.5
UNI	75	75
USDC	87.5 for DAI	85
WBTC	85	85 for WETH
WETH	85	85 for WBTC
YFI	72.5	72.5

Asset	Address	Oracle
1INCH	0x111111111117dc0aa78b770fa6a738034120c302	0x72AFAECF99C9d9C8215fF44C77B94B99C28741e8
AAVE	0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9	0x6Df09E975c830ECae5bd4eD9d90f3A95a4f88012
COMP	0xc00e94cb662c3520282e6f5717214004a7f26888	0x1B39Ee86Ec5979ba5C322b826B3ECb8C79991699
DAI	0x6B175474E89094C44Da98b954EedeAC495271d0F	0x773616E4d11A78F511299002da57A0a94577F1f4
DPI	0x1494ca1f11d487c2bbe4543e90080aeba4ba3c2b	0x029849bbc0b1d93b85a8b6190e979fd38F5760E2
FEI	0x956F47F50A910163D8BF957Cf5846D573E7f87CA	0x7f0d2c2838c6ac24443d13e23d99490017bde370
LINK	0x514910771AF9Ca656af840dff83E8264EcF986CA	0xDC530D9457755926550b59e8ECcdaE7624181557
SNX	0xc011a73ee8576fb46f5e1c5751ca3b9fe0af2a6f	0x79291A9d692Df95334B1a0B3B4AE6bC606782f8c
UNI	0x1f9840a85d5af5bf1d1762f925bdaddc4201f984	0xD6aA3D25116d8dA79Ea0246c4826EB951872e02e
USDC	0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48	0x986b5E1e1755e3C2440e960477f25201B0a8bbD4
WBTC	0x2260fac5e5542a773aa44fbcfedf7c193bc2c599	0xdeb288F737066589598e9214E782fa5A8eD689e8
WETH	0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2	0x5f4eC3Df9cbd43714FE2740f5E3616155c5b8419
YFI	0x0bc529c00c6401aef6d220be8c6ea1667f6ad93e	0x7c5d4F8345e66f68099581Db340cd65B078C41f4

This is a multiple choice vote

You can either vote for a safer package with WETH, WBTC, USDC, DAI, LINK and/or also for the main DeFi tokens 1INCH, AAVE, COMP, SNX, YFI, UNI, FEI, DPI. If both reach quorum of >2%, then all tokens in the list will be added. If only one reaches quorum, then that one will be added. If none reach quorum, a re-vote will take place.

SAFE 5-asset packet: WETH, WBTC, USDC, DAI, LINK

FULL 13-asset packet: 1INCH, AAVE, COMP, SNX, YFI, UNI, FEI, DPI + WETH, WBTC, USDC, DAI, LINK

Snapshot - VOTE

https://snapshot.org/#/gearbox.eth/proposal/0xb249bd324ccf2fed7e2808b1208a71a08a6e87b8608cada62489a92daa7efab5

Bagsy · December 19, 2021, 7:25pm

$comp? safu? all patched up now? given recent vulnerabilities, this one spooks me a bit.

ilgiz · December 20, 2021, 5:34am

All we need to know for defining Liquidation Thresholds (and this is only important thing for listing token) is
a) liquidity amount for token
b) historical volatility - the lower it is, the higher leverage gearbox can give on it.

If you look at the historical volatility of COMP (link is here) you can see that volatility of COMP is pretty low. Why is this despite the vulnerability - I don’t know.

Bagsy · December 20, 2021, 7:26am

k well if we all get rekt and it’s cos of comp, I want a poap

ilgiz · December 20, 2021, 3:25pm

Seems that this vote led to a lot of interesting chatter inside and outside gearbox community - great participation so far! I would like to note that the initial list appeared as a result of Pre GIP 2/3 discussion, taking into account different opinions presented by community members. The starting batch as to say, was chosen just as a working tool to launch with. It doesn’t have to be scrutinized or made perfect in terms of the asset composition, as long as it includes the most safe (based on DAO risk tolerance) assets. It will be possible to add new tokens at any time with new GIPs. Hence the 2 choice vote instead of doing each asset separately.

Now it seems to me the main task from the point of view of risk is to:

check how well the liquidations work (this information is extremely important for the correct calculation of LT and this can be done only after launch on mainnet)
create together with a community transparent and clear criteria for adding new tokens (including various risk metrics), to serve as a guideline.

re CRV/CVX - I did some research on their volatility:

Largest price drop for tokens from 12-Pack in voting is 15% for YFI (Pre GIP 2/3 discussion), while for CRV it is 20.96%.

Largest price drop of CRV happens on 15 Feb 21, after that price became less volatile… I think we need to understand is it possible again or token now more mature and it’s impossible… As confirmation of 2nd opinion is that for last 270 days max 5-min price drop for CRV is 12.9%. As such, it seemed best to not try to fit into the first batch [GIP2] all the assets possible, but just put the most reliable ones as a way to launch with. Again, new tokens at any time with new GIP. Curve and Convex are both cool!

For CVX: I can’t find a Chainlink oracle here, seems it hasn’t any. @michwill noticed, that Curve’s cvxeth price oracle can be used - need more research on that.

mikael · December 20, 2021, 3:45pm

Great job, @ilgiz ! I believe that community will make research needed and it’ll be possible to make a proposal to add CRV token soon. Totally agree about CVX, without Chainlink pricefeed, this task is impossible from engineering side. Hope, this pricefeed will be added by Chainlink soon.

michwill · December 20, 2021, 3:51pm

Definitely agree that in 15 Feb CRV was a little bit too volatile. But supply and liquidity grows proportionally to time passed since Aug 14 2020…

And also this process is fairly probabilistic (so if there was only one drop it doesn’t mean it will happen again, or if there was no such drop - it doesn’t mean it’s totally excluded…).