Prop 187: TIA Listing - Neutron Outpost
mrc: 95 title: TIA Listing - Neutron Outpost authors: Mars Foundation forum-url: https://forum.marsprotocol.io/t/1288
Summary
The objective of this proposal is to list TIA, the native token of Celestia, as a collateral asset on the Neutron outpost of the Red Bank.
Motivation
Celestia is a data availability network that will enable modular blockchains, which represent the next generation of scalable blockchain architectures. Blockchains that rely on Celestia scale by decoupling execution from consensus, delegating the latter to Celestia. And Celestia itself scales by using data availability sampling, a new primitive that allows data availability verification to scale with the number of nodes that participate in sampling.
Celestia (and its native token TIA) is a highly popular project and an important component of the Cosmos ecosystem. As such, we believe this listing has the potential to increase organic usage of the Red Bank within Neutron.
Risks
The following sections cover some known risks of listing the token.
Technical Risk
The lack of public audits and an active bug bounty increase the risks of listing TIA from a technical risk perspective. This risk could materialize in a number of ways and considerably impact TIA the asset, which could expose Mars to insolvency risk.
| Metric | Requirements | Comments |
|---|---|---|
| Time Since Launch | Minimum | Celestia will be launched on October 30th, 2023. |
| Custom Public Audit | Not met | While we’re aware Celestia is being audited, we haven’t been able to find the results of those audits. It’s likely that they’re not public yet. |
| Recent Audit | Not met | |
| Bug Bounty Program | Not met | We couldn’t find any information about an active bug bounty on Celestia. |
Centralization Risk
We haven’t been able to find information about how permissioned addresses are handled for Celestia and what their powers are. As such, it should be assumed that the network will be centralized initially while it matures and is further battle tested. Celestia’s initial launch phase will be referred to as ‘Mainnet Beta’, a stage of experimentation where instability, reduced performance, fixes, updates and enhancements should be expected.
Oracle Risk
We propose to use the Pyth TIA/USD feed.
Please note that this feed isn’t available yet but we expect it to be made available soon after TIA is launched. Given this, only when the feed is made available by Pyth can this proposal be implemented.
Risk Parameters Suggestion
The following parameters are the same as those on Osmosis and follow the guidelines suggested by the Mars Risk Framework.
- Max. LTV: 72%
- Liquidation LTV: 73%
- Deposit Cap: 25,000 TIA
- Interest Rate Parameters:
- Optimal Utilization: 60%
- Base IR: 0%
- Slope 1: 15%
- Slope 2: 300%
- Liquidation Bonus: 10%
- Reserve Factor: 10%
- Usable as collateral? Yes
- Available to borrow? Yes
Implementation
This is a signaling proposal, not an executable proposal.
The Mars smart contracts on the Neutron chain are currently controlled by the Builder Multisig address. If this proposal passes, the builders will utilize their multisig to make the necessary parameter changes.
Copyright
Copyright and related rights waived via CC0.
Disclaimers/Disclosures
This proposal is being made by Mars Protocol Foundation, a Cayman Islands foundation company. Mars Protocol Foundation engages in research and development of the Mars Protocol. Mars Protocol Foundation and certain of its service providers and managers own MARS tokens and have financial interests related to this proposal. The aforementioned persons or their affiliates may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including Neutron/NTRN. These statements are intended to disclose relevant facts and to help identify potential conflicts of interest, and should not be misconstrued as a complete description of all relevant interests or conflicts of interests; nor should they be construed as a recommendation to purchase or acquire any token or security.
This proposal is also subject to and qualified by the Mars Disclaimers/Disclosures. Mars Protocol Foundation may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Mars Protocol Foundation is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Mars Protocol Foundation shall have no liability in the event of losses or damages ensuing from approval or rejection or other handling of the proposal. Each user and voter should undertake their own research and make their own independent interpretation and analysis of all relevant facts and issues to arrive at their own personal determinations of how to vote on the proposal.