List ibETH - interest bearing ETH, from Alpha Finance protocol - as collateral asset.
List ibETH as collateral asset
CREAM and Alpha has already established a strong partnership. Alpha Finance is one of the few protocols whitelisted in Iron Bank and both have major plans for their respective V2 releases.
Alpha Finance is already an important protocol in today’s DeFi scenario. With 600+M TVL in less than 4 months of its first product launch, it found a great underserved niche in the ecosystem. Also, it is about to launch its V2 with further improves to current lead product, Alpha Homora, an leveraged yield farm application.
Furthermore, there are 280608.42 ETH deposited backing ibETH in Alpha Homora. APY provided as ibETH has been steady at 7-8% with spikes to 25-40% in ETH terms.
ibETH risks are related to Black Swan events where liquidators may not liquidate underwater positions in time. Quoting Alpha Homora risk section
3. ETH Lenders share the risk of debts accrued by underwater positions in case liquidators did not liquidate in time
Note: This has not happened before.
And last, there are no major lending protocols that use ibETH as an collateral yet. There is an untapped demand of users who want a nice APY to there ETH, but also want to borrow against it. I believe CREAM could further improve this relationship and acquire Alpha lenders to ist user base.