Multi-Collateral Reserve

nvtaveras commented 2 years ago

Add Multi-Collateral Reserve (i.e. CELO plus cBTC)
- For buy & sell, shift from two-asset CP-AMM to balancer-type AMM to allow expansions and contractions via bridged reserve assets (cBTC).
- Allow IRPs in cBTC
- Allow SPs to provide cBTC
  - Modify incentives to generate drift towards target allocations
- Adjust actors to account for cBTC
  - Representative buy & sell arb trader
  - IRP creators
  - SPs
- Investigate multi-collateral mechanics via MC simulation
  - Can this be gamed?
- Investigate how overall stability characteristics of the system are affected by switching from single asset on-chain collateral (CELO) to multi-asset collateral (CELO + cBTC)

tobikuhlmann commented 2 years ago

Terra / Jumps approach is interesting: https://agora.terra.money/t/bitcoin-reserve-pool/5259

It's a proposal, not in production yet. TLDR normal stable mint & redeem with LUNA, and a fee structure for stable <-> wBTC via wormhole pool such that it's only profitable to arbitrage stables with wBTC in a depeg scenario > 3%. Meaning in a stable range [0.97, 1.03] arbitrage works with LUNA, for [< 0.97, > 1.03] also with wBTC

tobikuhlmann commented 2 years ago

Will be interesting to play around with something similar in the cadCAD multi Mento, kind of steering the volatility absorption between the reserve assets

celo-org / mento2-model

Multi-Collateral Reserve #31