[📄] Collateral Onboarding Call #10: Balancer + tBTC - Wednesday, October 7 17:00 UTC

[juanjuan]

Time in your local-timezone format:

2020-10-07T17:00:00Z

Dial In Details

Zoom Call

Passcode: ONBOARD

Intro

Welcome to another collateral onboarding call, where we’ll discuss potential assets for MCD, open for anyone to join.

• For questions, discussions and feedback on the call, please check out this thread!
• If you’d like to present, check out this thread

Agenda

Intro

by @juanjuan

Presentation 1: Balancer

Fernando Martinelli, from Balancer, will be presenting Balancer:

• [BAL] MIP6 Collateral Onboarding Application
• [BPT-80BAL-20WETH] MIP6 Collateral Onboarding Application

attn: @monet-supply, it would be great if you could join, since you posted the application.

Presentation 2: tBTC

@mhluongo, from Keep Network, will be presenting tBTC:

• [TBTC] Proposal for Collateral Onboarding - tBTC

Open discussion and Q&A form.

See you there!

[juanjuan]

Reserved for notes.

[Gala]

Collateral Call Summary - Episode #10

October 7th, 2020

Agenda

• 00:00: Intro with Juan Guillén
• 00:50: Balancer with Fernando Martinelli
• 11:35: Q&A and Discussion about Balancer
• 28:15: tBTC - Keep Network with Matt Luongo
• 43:00: Q&A and Discussion about tBTC - Keep Network

Video

https://www.youtube.com/watch?v=cPDwGHxuNtY

Introduction

Juan Guillén

Agenda and Preamble

00:00

• Hello everybody! Welcome to our collateral onboarding call #10 held on October 7th, 2020 at 5PM UTC. My name is Juan. I’m here with 24 participants.
• Today we will have two of my favorite projects in collateral onboarding. We will have Fernando Martinelli from Balancer and Matt Luongo presenting tBTC - Keep Network.
• Discussions about collateral happen in the Forum.

Balancer

• [BAL] MIP6 Collateral Onboarding Application - Forum Thread
• [BPT-80BAL-20WETH] MIP6 Collateral Onboarding Application - Forum Thread

Fernando Martinelli

Presentation

00:50

Discussion

• 11:35 - Juan Guillén: When I add liquidity to a pool I get BPT tokens so what’s the way to know which liquidity pool those BPT tokens come from?
• 13:10 - Nik Kunkel: From an Oracle perspective, how would you value a BPT token? Is it just the underlying and if it is how do you make sure that the ratio isn’t manipulable to manipulate the price of a BPT token?
• 14:40: Nik Kunkel: Is there a way to normalize the ratio over time?
• 15:50 - LongForWisdom: With any liquidity pool, the risk of the pool is contingent on the risk of the weakest token in the pool?
• 18:20 - Primoz: In case MakerDAO considers to onboard BPTs, the idea is that Maker boots yields of liquidity providers, so we would be obviously charging stability fee that is a percentage of liquidity mining rewards. I know that those rewards are a function of Balancer price but also of the distribution. So, how do the distribution and the money incentives work? How frequent does it change? What’s the actual framework there? Is it community based?
• 23:40 - LongForWisdom: We’re considering onboarding BAL itself as well, how value accrues to the BAL token? Is it planned that a fee from the pools is going to go towards buy and burn for BAL in the future?
• 25:50 - Akash: With the Balancer liquidity pool tokens, is there a way to go backwards and figure what the weights are for the pool?
• 26:05 - Akash: If there is XYZ token with ETH and then you create Balancer tokens that then go into Maker and then you mint Dai, you lever up. The mark Maker who’s on the other side when liquidations happens will have no liquidity in terms of liquidating the underlying tokens, right? They would get these liquidity tokens go back to Balancer or pull off the underlying tokens and there would be no place to sell it.

tBTC

• [TBTC] Proposal for Collateral Onboarding - tBTC - Forum Thread

Matt Luongo

Presentation

28:15

Discussion

• 43:00 - LongForWisdom: I have a comment on incentivizing Dai minting. We talked about the same with Maker and one of the reasons why I’ve personally thought it’s a bad idea is, there’s nothing really in forcing someone to sell the Dai, it’s actually safer if they hold on to it.
• 44:00 - Sébastien Derivaux: Can I get an idea of what is the business model of the company behind the tBTC because there are some work tokens so you would expect cash flows but it seems that tBTc is not quite expensive?
• 45:15 - LongForWisdom: Do those fees come in bitcoins?
• 46:25 - Juan Guillén: I have a question regarding the ETH. It seems like the tBTC’s collateral twice, maybe? That you would hold the BTC on the BTC MultiSig contract potentially and on the other hand you would also hold enough ETH so that if one of the contract fails you have the backup from the ETH, is that how it works?
• 48:35 - Primoz: Since liquidity is not great yet, how long does BTC redemption process take?
• 50:20 - LongForWisdom: I think the focus of this question is that keepers keep their bid on tBTC on Maker in the case of a Maker Liquidation, how long it takes those keepers to get to go from that tBTC back to Dai?
• 52:10 - Frank Cruz: Are you guys looking into doing any other bridges to other L1s?

Closing Comment

Juan Guillén

Outro

54:50

• Thank you Matt again for coming, it was very informative. Let’s keep the conversation going on in the Forum.
• Thanks again to Fernando for presenting in the first half and everyone else for participating here. See you in the forums!

Credits

• Gala Guillén produced this summary.
• Everyone who spoke and presented on the call, listed in the headers.