This proposal aims to increase the collateral factor of CEL token from 0% to 25% on Ethereum to the benefit of both the C.R.E.A.M. and Celsius communities.
Increase the collateral factor of CEL from 0% to 25%.
Uniswap DEX: Uniswap Info
Collateral Factor Change: CEL 0% to 25% collateral factor on Ethereum
CEL token was listed on C.R.E.A.M. in October 2020. At the time of writing this proposal there are approximately 34,900 tokens locked on the platform equal to ~$445K USD. The number of CEL locked on the platform have have fluctuated as low as 4,800 and as high as 446,000; indicating demand to lend/borrow from the Celsius community. See Exhibit A.
Exhibit A: Amount of CEL locked in C.R.E.A.M. from Oct. 2020 to Oct. 2021.
Over the same period, the CEL token has appreciated +330% in value (from $1.29 to $5.58) and daily trading volume has also grown +330% (from $3M to $13M volume). CEL token is currently valued at $2.2B and ranked #62 according to Coingecko (based on 423M/695M circulating supply). See Exhibit B below.
Exhibit B: Cel Token Price and Volume have grown from Oct. 2020 to Oct. 2021.
Additional Protocol Fees:
There is already $445K USD worth of CEL locked on C.R.E.A.M. and it would be reasonable to expect CEL lending/borrowing activity to increase if the collateral factor is increased. This would benefit iceCREAM holders because the additional lending/borrowing volume would result in additional protocol revenue.
First Mover Advantage:
Currently CEL token is not listed on other lending markets such as AAVE or COMPOUND. By being a first mover, iceCREAM holders would earn all the revenues from CEL lending/borrowing and not have to share them with other platforms.
We appreciate the C.R.E.A.M. community for taking the time to review our proposal and we look forward to reading your reply. We would be happy to answer any questions in the discussion field below!