Yam Lending and Borrowing

There are plenty of Yam holders who don’t want to sell for a multitude of reasons. I propose a Compound like system wherein, people can lend their yams/stablecoin and allow others to borrow yams/stablecoin

The team would need to build the platform, but wouldn’t need to contribute the capital. The yam community could determine this by contributing to the respective pools. Collateral to borrowing ratio should be relatively high initially, unless Yam finds significant price/mcap support.

This would give spending flexibility for holders who want to keep their yams. However, disclaimers would be necessary to inform users that collateral can be liquidated during adverse price swings.

Initially the borrowing and lending would only consist of Yam/stablecoins.

Yam/Stablecoin Lending and Borrowing
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I’d like to see if there is input from Devs regarding the difficulty of building and maintaining something like this. Would it just be a fork or another protocol that we can use and provide our own liquidity and pairs to? Would the rebasing nature of YAMs get in the way and require a go between token like $mbBased?

Basically, what advantages and disadvantages does building this inhouse have over trying to partner with an already existing protocol to list YAMs as a collateral type?

Partnering with another platform would be optimal but considering Yam protocol’s relative youth in the space and recent 2 month history, I’m not confident that Compound would pick us up. Maybe Cream but that hasn’t been out that long, and depending on them would be risky.

The costs might outweigh the benefits. Forking might be the easiest way to move forward for this. The idea is not to compete with Compound or other lending platforms; this is to give Yam holders more financial flexibility

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Lending and borrowing you, say? Compound like structure?

I present to you… drumroll please… the YEX!

But in all seriousness, I’ve been shilling this idea for a while and am trying to build up community support so we can start making long term plans to get something like this off the ground. Take a look and see if it aligns with your vision. I’d love to get more people interested.

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I really like this idea and I’ve recently been getting more on board with it. I was at first hesitant to go too elastic specific, but i think lending and borrowing would make a ton of sense here.

First and foremost, it adds a lot of utility to YAM itself, allowing people to go long or short productively.

In general, I think this is going to be something we have to build, because most protocols don’t play nice with rebasing assets. AMPL still isn’t listed on any lending platforms, and I don’t think it will be anytime soon.

Building our own protocol also allows us to collect fees on all lent/borrowed assets :slight_smile:

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I’m shipping this idea @KW710!

It has great overall domino effect for the upward potential of YAM Protocol. YAM Protocol, like any other protocols/projects, has diverse community. This idea will benefit the yam community in 5 folds; the farmers, the investors, the traders, the speculators and the YAM Treasury.

Farmers can stake their yams to get the governance token of this E-Fi lending/borrowing protocol. Investors can lend their yam tokens to earn interest. Traders can then collateralize assets, which surely yam token is included, then borrow yam tokens to do what their best at swinging.

On the top of these benefits mentioned above, it will drive demand for yam tokens in which those speculators will benefit as well just by holding (due to expensive gas fees) since this will push us in positive rebase. Thus, lastly, YAM Treasury can be funded.

I’m excited to hear feedback regarding the feasibility of your idea from yam’s core and contributing devs’ perspective. Also, it is true what @trente said that elastic tokens won’t be listed in any DeFi lending/borrowing protocol for quite some time. Might as well let the YAM Protocol be the pioneering E-Fi to pave this way (or at least 2nd after AMPL if they won’t release their version soon). :smiley:

From what I understand, AMPL is due to be supported in the new Aave soon. Stani the founder of Aave is also a fan of YAM as well.

Do you have evidence of his support?

Does it help or hurt things to start by forking already available code like Compound’s and modifying it to be more rebase friendly? On the surface, it seems like a lot of the structural elements have already been built and put into use elsewhere, and we’d just have to change specific elements.

If it is true then the capability of something like Aave to support rebase tokens will be coming very soon. Stani has tweeted favorably about YAM many times.

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Awesome about Ampl!
But Basis, I thought that defunct was defunct for regulatory issues.