$TRAVA adding to the Lending Pool as collateral
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By adding $TRAVA as collateral to the lending pool:
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current TRAVA holders will benefit of getting a loan based on their TRAVA amount WITHOUT the need to sell their TRAVA tokens
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Along with staking and NFT, $TRAVA utility will increase
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People will be more motivated to buy and lock their $TRAVA tokens, though increasing the demand
What are your thoughts on that?
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@mazz086 I love this idea! I feel most of the sellers of Trava right now are holders selling their staking rewards for cash flow. This would end the selling in this down market, great idea!
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@jefe811 That's exactly what I was thinking about.
However, it would be interesting to see how the Team see it.
I'm sure they already thought about this and could have implemented it before.
If they didn't yet, there should be a reason or a calculation in the background.Anyone from the Team willing to discuss with us?
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It is a nice suggestion and would also help the trava token get what it is missing Atm
But also It is quite risky. Because the circulating supply of Trava is small ppl can miss use it
They borrow by fastloan on other protocol and buy Trava to push up price. Then they deposit Trava and borrow other stable tokens
Then they will not repay it back. so that would destroy the whole thing,But yes if they find an optimal mechanism that can be implied.
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Hey @mazz086. Indeed having $TRAVA as an asset to be able to Lend/Borrow via Lending Pools would provide the necessary utility. However as @theunreal has mentioned above, TRAVA Token cannot be added as an asset to Lending Pools as of this moment at least due a few reasons.
Trava Finance does not support flash loans in Lending Pools, but other project protocols like AAVE do. By staging a flash loan attack via other project protocols users could destroy TRAVA price like it happened with CREAM for example.
Current low price, current low circulating supply does not allow TRAVA to be an asset in Lending Pools quite yet. But that is why TraDAO ($TOD) should take it's place in the near future as an asset to be available for Lend/Borrow since it's backed up by a Treasury controlled by TraDAO protocol itself.
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@mazz086 Yeah. That's great idea. Actually we thought about it for a few months. At the moment, TRAVA has not been added into Trava Lending Pool. There are some reasons:
- The current market is not good. The price fluctuation will effect our lending pool.
- TRAVA still has small cap with small circulating supply. That's delicious bait for hackers to knock out our lending protocols.
- There are lack of utility for users to borrow TRAVA.
Base on these reasons, we have some plan for that: - We can add TRAVA to our lending pool which is not collateral. With this features, users can earn rTRAVA as reward and earn TRAVA when other borrow their TRAVA.
- Create more utility for users to borrow TRAVA from lending pool. Some fund managements are being implemented to increase this aspect.
How do you feel about it and do you have any idea for this?
@Kel @theunreal @jefe811 @mazz086
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One good way to supplement utility for Trava and we also benefit from this, maybe we can make a proposal for it
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@chloexav Yes. Thank you for your suggestion about the new proposal. i will check and update for it. Do you have any idea to make TRAVA in lending pool more effective?
