This discussion post will be split into two parts: Why a Lending Network is crucial, and why we should go through Ola Finance.
Why should we create our own lending network? (Skip if you already know)
Staking TIME is great, but having an advanced use for the MEMO receipt token is even better. Instead of letting your MEMO sit idle, there should be the option to use it as collateral and borrow against it. By doing so, one collects the normal rebases, but also enables the opportunity to create a leveraged position: Supply MEMO, borrow stablecoins against it, purchase more TIME, and repeat.
Traditional Lending platforms like Compound, Aave, etc. won’t provide this feature to Wonderland because listing MEMO is viewed as “too risky” for them. By creating our own Lending Network governed by the DAO, we can adjust the risk tolerance to our liking and benefit from a portion of the revenues generated to help fund future operations.
Why should we create a Lending Network on Ola Finance?
There are multiple options who provide this service such as Rari Fuse, Abracadabra, and Ola. After researching and interacting with Ola’s community, they are the strongest bet for a few reasons:
They can build us this Lending Network for free - we don’t need to pay $500,000 like HectorDAO just did to Rari Fuse
It requires no effort from our Devs - Ola builds it themselves
They can deploy it for us on any EVM compatible chain (Avalanche, BSC, etc.)
We can determine the interest rate model and which assets to include in the network (MEMO, MIM, etc.)
They launched ApeSwap’s Lending Network which reached $10mil in two weeks
They don’t require manual Oracle price retrievals like Abracadabra, and they are partnered with Chainlink
They offer an incentive distribution program to attract more users (not mandatory)
We gain exposure to other communities coming to Ola for other projects’ Lending Networks
There are more reasons why Ola is a good bet, but someone from Ola can speak to it better. I’m a member of the Ola Finance community and they are super friendly and have a really nice UI. I think it’s the best bet.
While it’s a nice idea our own ecosystem has Abra and curve built in and the team seems to have other avenues they are exploring.im not dead against the idea but I believe we should support our own protocols and focus on scaling our ecosystem
Just because Abra is from frog nation doesn’t mean it is automatically the best pick. Although it’s good to support our ecosystem as @The-owl also mentioned, we shouldn’t let bias cloud our judgement. Other alternatives deserve fair assessment.
An Ola Lending Network controlled by Wonderland would offer us all the same features as Abra AND MORE:
We would still be able to borrow MIM against wMEMO, xJoe, LP Tokens, etc.
We would still be able to do this on Avalanche and any other EVM-compatible chain
There would be no 0.05% fee to borrow like Abra charges
We could borrow other assets, not just MIM, using our wMEMO collateral
We could use MIM as collateral to short other assets
We would gain greater community exposure from the Ola Finance platform
I agree Abra is good but there are additional features we could be receiving!
Did you read Dani’s proposal on sushiswap? He talked about this lending/borrowing section and I think you would like what he proposed.
But again, I checked Ola’s website and it is still in beta and it didnt looked like very promising. But anyways, I think that merging Frog Nation and SushiSwap would be the best decision, the lending platform would benefit from it too. Idk if the lending plataform would still be Abracadabra or if it would be SushiSwap’s plataform
Yeah, I saw the proposal and thought it sounded great. The offering by Kashi Lending/Bentobox does offer a lot of the features I mentioned such as leveraged shorting of assets, earning yields from lending assets, etc.
I think the main difference for me is 1) You need to provide collateral and a lending asset, instead of them being one in the same 2) The fees that lending networks like these take from the borrower and 3) Everyone selecting their own price oracles puts the price for ETH/USD, for example, all over the place
By the way, some of Ola’s projects are in Beta - like ApeSwap, which just launched - but the protocol itself is not in beta; they just have good tech with not the best-looking website.
I’m an active member in their community. Not a part of the team, but I hope to hold some governance role in the future. They haven’t released their native token yet. But I’ve explored their platform a lot and talked with the team, and I really think they will expand well.
I think having more lending and borrowing options is great and important, However if we do choose to do this there is no way that we should trust this to other devs. This should be done in house with our great developers and where we control everything 100% After all the whole point is to grow the frog nation…
Sorry I don’t see a value on that.
Wonderland, Popsicle, Abracadabra and Sushi are made to work together and one provide value to each other. That’s what we should focus on.