I would like to propose the team create a wrapped/staked version of TOD.
Why do we need this?
Because if you were to use your TOD as collateral, you would not be receiving the rebases as your TOD tokens are not staked.
Not ideal, as the protocol is rebasing away from you and you are essentially loosing value by not having them staked.
There really is no incentive to unstake your TOD and use it as collateral.
So what are the benefits of having a staked version of TOD?
While you are using your TOD as collateral, you are still earning the rebases, xTOD becomes a yield bearing asset.
This gives you are really high quality asset to use as collateral, as your xTOD is gaining value all the time.
An example of a high quality asset to use as collateral is Bitcoin, as its a deflationary asset and gains value over time.
As the value in xTOD or BTC increases over time, you can essentially keep leveraging/borrowing against it.
Leveraging is very powerful tool for those in familiar with defi.
I believe this is an amazing use case for TOD.
Thanks for reading!
Paul last edited by
Great Idea! This would bring a nice use case to TOD.
So we could use it as collateral while still earning rewards, this could help to prevent selling preasure!
Quan Dinh last edited by
@bigben We are having staked version of TOD. Interestingly, it's name is xTOD. Using xTOD to deposit into the lending pool is completely possible. But using xTOD as collateral and borrowing other tokens, for example USDT, requires a lot of consideration. Because TOD is currently still a token with large price fluctuations, a whale can push the price of TOD very high to borrow a large amount of USDT and then dump the TOD price. They will receive a large amount of USDT and the lending pool will be affected. It's also a mechanism used in a lot of recent lending pool hacks. We are trying to create more utilities for TOD and xTOD. Hope it's works well!