Get xINCH to Aave

Hi 1INCH holders,

Summary:

This is a proposal for adding borrow/lend support for xINCH on Aave.

Background:

A while back @k06a submitted an Aave proposal to add support for $1INCH (link here).
This didn’t go through as Aave had since changed the listing process - it’s now open and decentralised.

As one of benefits for Aave, Anton highlighted:

Aave platform could stake 1INCH tokens in st1INCH, same way as stored DAI inside CHAI a while ago. This would allow to have additional earnings for liquidity providers.

Proposal:

  1. Get a new Aave proposal submitted to Aave using the most recent governance process.
  2. Instead of $1INCH, let’s put forward a proposal for $xINCHa and $xINCHb. These are tokenised $st1INCH tokens that are transferable with automatically compounding & reinvesting staking rewards. This was launched by XToken.Market (see the announcement).

Benefits for 1INCH:

  • Increased utility and adoption of $1INCH
  • $xINCH will serve as a high-quality collateral in Aave that can be borrowed against
  • It’s unlikely that people will be borrowing $xINCH to short $1INCH as xINCH isn’t as liquid (altho xtoken.market has started liquidity programmes). See example of xSUSHI on Aave - it generates 0% interest as no one is borrowing it, but the Sushi community can now deposit their staked Sushi and borrow against it: win-win. (Note xSUSHI wasn’t done by xtoken.market)
  • More interest in xINCH → potentially more $1INCH gets staked → lower free-float supply → higher token price
  • Alignment with Aave community

What’s needed:

  1. We need support from 1INCH core team to get legitimacy and momentum to such a proposal. Ideally, it would be great for @k06a to resubmit the updated proposal.
  2. Once done, all 1INCH community have to vote and push for this to happen!

Extra:

I’m in touch with both X-Token and Blockchain Labs teams (who did the audit of xINCH), so we could support the application by providing all necessary info.

cc @Belac

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  • Aave’s most recent governance process is outlined here.

  • The Aave proposal can be replicated from the accepted xSUSHI proposal - see here

1 Like

As someone heavily invested in the future of both platforms, I’d love to see this happen. xInch(a/b) seems to be the perfect vehicle for this, but other methods are worth considering.

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