On behalf of Matic Network community, I would like to submit the application for MATIC token to be accepted as one of MCD collaterals. I am attaching the filled up form in a google doc with all the required details.
1. Who is the interested party for this collateral application?
- The interested party here is the Matic foundation
- Representative from Matic Network is Sandeep Naliwal (Co-founder & COO of Matic Network).
2. Provide a brief high-level overview of the project, with a focus on the applying collateral token.
- Matic Network is a Layer 2 scaling solution that aims to provide a generalized Layer2 platform which offers various Layer2 approaches over any Layer1 blockchain to developers to scale their apps for large scale usage. As a first, Matic has launched its Hybrid POS+Plasma sidechains which is already picking up huge traction making Matic one of the fastest growing Dapp platforms in the space.
- Matic’s key strengths are:
- An elegant architecture which has separates Validation layer from execution (eg EVM for Hybrid POS+Plasma chains)
- Transactions secured by various L2 technologies like Plasma,OR’s
- Zero effort deployment for existing Ethereum programmers
- Extremely low-cost transactions
- High throughput
- Fast (~1second) confirmation times
- Utility - MATIC is the utility token of Matic Network, which has a range of use cases including: participating in the Proof-of-Stake consensus, paying network transaction fees. Additional utilities might include, but not limited to, securing P2P loans (via Constant) and as a payment mechanism on multiple external platforms (Ankr and Play Royal).
- Market Volumes - Matic is frequently the top 5 volume altcoins on Binance, and has been the no. 1 volume coin on the world’s largest crypto exchange being ahead of even Ethereum.
- Liquidity - Many studies have also said that the actual liquidity on Matic is in the top 25 assets in the space which makes it a very significant candidate for the collateral
- Community - Matic Network, even though only 1 year into its public listing already has one of the largest and most loyal communities in space. This can easily be verified via Matic’s twitter handle @maticnetwork or Telegram group @maticnetwork . Matic also regularly features as the topmost assets in terms of social engagement.
- Matic is backed by Coinbase Venture & Binance
- Market Availability - Matic is listed in almost 25 exchanges including top exchanges like Binance, Poloniex, Coinone providing it ample liquidity and potentially reliable pricefeeds. Many other big exchanges are considering listing Matic and others like Binance US have publicly declared intention to list Matic post it’s mainnet.
3. Provide a brief history of the project.
- Matic team has been making valuable contributions to the Ethereum ecosystem for a long time, even before it’s public surfacing as Matic Network. This includes working on implementations of Plasma MVP, developing the WalletConnect protocol and the Ethereum event notification engine Dagger.
- After securing Seed Round funding from Coinbase Ventures, Matic successfully successfully held it’s IEO on Binance in April 2019.
- In terms of development progress, Matic has previously launched it’s testnet, Alpha-mainnet and Beta-mainnet, and it’s full mainnet, along with staking, is going live by end of may.
- Along it’s journey Matic has attracted a great deal of attention from the industry, which reflects in it’s adoption rates - there are currently more than 50 DApps building on Matic Network already. This figure is increasing every week.
- MATIC token has now been listed over 25 exchanges globally, and is trading against more than 40 base pairs.
- MATIC token has seen unprecedented volumes for a token with it’s size of market capitalization, with volumes consistently surpassing that of many top-30 coins by market cap.
4. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.
- Blockchain basics: https://docs.matic.network/docs/home/new-to-matic
- App development on Matic: https://docs.matic.network/docs/develop/getting-started
- Validators: https://docs.matic.network/docs/validate/basics/validator
- Integration with Matic: https://docs.matic.network/docs/integrate/quickstart
Relevant Ethereum addresses
- MATIC token smart contract: https://etherscan.io/token/0x7d1afa7b718fb893db30a3abc0cfc608aacfebb0
- Vesting contract: https://etherscan.io/address/0xcbfe11b78c2e6cb25c6eda2c6ff46cd4755c8fca
- Foundation contract: https://etherscan.io/address/0xb316fa9fa91700d7084d377bfdc81eb9f232f5ff
- Marketing & Ecosystem: https://etherscan.io/address/0xccb04768f3abcf1af1e749085ef67d8ec7c5fdd2
- Network mining & seeding: https://etherscan.io/address/0x50d669f43b484166680ecc3670e4766cdb0945ce
Matic Network Code Repositories
Root Chain Contract
Heimdall (Validator Layer)
Bor (Execution Layer)
5. Link any available audits of the project. Both procedural and smart contract focused audits.
- Smart contract audit: https://medium.com/nomic-labs-blog/matic-network-security-audit-report-c3b2e9d5dcc4
6. Link to any active communities relating to your project.
- Telegram global community: https://t.me/maticnetwork
- Telegram announcement channel: https://t.me/maticnetwork_announcements
- Twitter: https://twitter.com/maticnetwork
- Facebook: https://www.facebook.com/maticnetwork/
- Reddit: https://www.reddit.com/r/maticnetwork/
7. How is the applying collateral type currently used?
MATIC is the utility token which powers Matic Network, and has a range of use cases:
Participating in the PoS consensus mechanism
Paying for transaction fees (gas) on the Matic network sidechains
Other secondary utilities like Lending, collaterals, NFT sales etc. The popularity of MATIC token has attracted interest from third parties which have integrated MATIC into their respective platforms. Additional use cases therefore include:
Securing P2P loans (via Constant)
Matic used for NFT and in-app game purchase
Some teams, Binance Labs backed and KuCoin Listed have
8. Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?
- Matic Network (BVI) Ltd is the issuer of Matic Token
- It resides in British Virgin Islands (BVI)
9. Where does exchange for the asset occur?
MATIC token has been listed on over 25 exchanges, and is trading against more than 40 base pairs.
Exchanges include: Binance, Poloniex, Coinone, BitMax, Bitrabbit, Bilaxy, TOKOK, BitMart, WhiteBIT, BitForex, CoinEx, Omgfin, DCoin, BW, WazirX, CEX.IO, FatBTC, Bitrue, HitBTC and Binance DEX.
Matic is also listed on Coinbase Custody
10. (Optional) Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.
Matic has a legal opinion from it’s legal counsels from Singapore.
11. (Optional) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.
12. (Optional) List any possible oracle data sources for the proposed Collateral type.
None as of Now. Tellor, Chainlink, Band Protocol, Coinbase Oracle might support Matic as collateral in the short term. Matic team is already working with most of these teams in various forms.
13. (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type
Matic team hasn’t discussed this with any of it’s partners.
Additional Question which we think should be a part of the form:
What are the risks with using this asset as an MCD collateral
Matic being an altcoin is still fairly volatile. Though it’s volatility has slightly reduced off late but Matic had a major price bump in early December when in one day Matic’s price crashed 70% in a matter of few minutes. This, as per one particular unsubstantiated theory, was caused by some large & unknown market actors taking advantage of it’s small market cap in those early days of it’s existence but yet having Futures and Margins markets enabled for it. It is speculated that these market actors took large short positions on futures markets and sold heavily on spot markets thereby profiting from their leveraged positions. This was resolved by requesting various exchanges to reduce the amount of tokens available on margins and since then such instances have not occurred on Matic’s markets and it’s volatility has moved in correlation to the overall crypto markets but the liquidity and market volumes on MATIC have remained intact.