Abstract
Two or three sentences that summarize the proposal.
Ooki DAO recently released a protocol update enabling APE/ETH margin trading, borrowing and lending on Ooki.com
Ooki is the first and only truly decentralized, DAO governed margin trading, borrowing, and lending trading platform to offer APE as both collateral for borrowing, lending, and also margin trading in a single DeFi app.
For current APE token holders, Ooki offers an excellent opportunity to borrow or lend out APE holdings. For users who aren’t familiar how this works, if you’re an APE token holder you can easily lend out your APE and earn 16% interest! We are really excited about this, we believe it’s a win-win opportunity for $APE holders to generate yield.
Instead of leaving APE sitting idly in your wallet, this is a great opportunity for $APE holders to use their APE tokens to earn interest by lending out their tokens to borrowers.
For APE holders seeking to borrow stablecoins, you can easily use APE sitting in your wallet as collateral in order to borrow a stablecoin. A simple example strategy would consist of using APE as collateral on Ooki, then borrowing a stablecoin against it to then generate yield from stable farming.
To improve the user experience of APE lenders and borrowers, we believe that the Apecoin community would benefit from additional liquidity incentives on Ooki. This proposal would allocate APE treasury towards incentivizing APE holders to lend out and borrow APE on Ooki.
About Ooki
Ooki is a DeFi protocol for margin trading, borrowing, lending and staking deployed on multiple blockchains. Ooki is a fully decentralized, DAO led project, governed by community vote for all major changes to the protocol.
Ooki users can open margin trades with up to 15x leverage using a fully decentralized trading platform. Ooki users can lend out funds and earn interest on their APE tokens, and also borrow funds against APE collateral. Ooki users can participate in platform governance through the OOKI DAO, and use their OOKI tokens to vote on proposals, submit new proposals, and participate in platform governance.
Motivation
A statement on why the APE Community should implement the proposal.
We are excited to progressively service the Ape community with secure and reliable DeFi leveraged margin trading, borrowing, and lending for APE holders. Offering incentives would give APE holders the ability to generate yield from APE idly sitting in their wallets. By enabling APE on Ooki, we are enabling the community to generate yield through a DeFi permissionless platform.
Rationale
An explanation of how the proposal aligns with the APE Community’s mission and guiding values.
Summary of Benefits for the APE token & community:
- Yield on passive APE holdings.
- APE as collateral.
- APE enabled borrowing, lending, and use as collateral for stablecoin loans.
Benefits for APE lenders and borrowers:
- Earn interest and generate yield on APE otherwise sitting idly in your wallet.
- Use APE as collateral for stablecoin borrowing, which can then be used to farm and generate yield.
In order to provide an optimal DeFi experience, sufficient liquidity is needed for traders, lenders, and borrowers. On Ooki, anyone can lend out funds and earn interest. Initially, seed liquidity is necessary to provide liquidity to attract and incentivize new lenders, borrowers and traders to the application.
Once sufficient liquidity is established, users will be able to borrow funds with APE collateral, as well as lend out funds and earn interest on APE. Ooki has recently launched an innovative and unique dynamic interest mechanism to ensure borrowers and lenders receive optimal rates when opening new positions on Ooki. Ooki’s approach to delivering optimal rates to lenders and borrowers uses a variable interest rate with a dynamically changing interest rate curve. The new dynamic interest rate system is preferable because it will allow liquidity pools to grow larger.
Specifications
A detailed breakdown of the platforms and technologies that will be used.
Ooki is another supporter of the Apecoin Community. Integration of APE on Ooki has enabled substantial opportunities for APE token holders to margin trade, borrow and lend APE in order to generate yield.
Steps to Implement
The steps to implement the proposal, including associated costs, manpower, and other resources for each step where applicable.
Ooki protocol will deploy the incentives and the Apecoin DAO will deposit 30,000 APE coins as a seed investment into the Ooki DAO controlled multisig.
Timeline
Relevant timing details, including but not limited to start date, milestones, and completion dates.
The liquidity incentives will be deployed within one week of the end of the snapshot vote. After the seed investment has been made, it will be left up to the discretion of the Special Council as to when to terminate or withdraw the liquidity incentives.
Overall Cost
The total cost to implement the proposal.
30,000 APE coin to ensure there is enough capital to get started. The Apecoin DAO remains in control of these coins and can choose to withdraw these coins and reappropriate them for any reason, at any time.
