Inspiration
The project is a proof of concept of doing staking using Liminal.market. Liminal.market just went on Polygon mainnet, the next step is to allow staking. This product is a demo of that.
What it does
Unlike other protocols that have stocks, Liminal.market does not use derivatives but real underlying assets registered on the stock exchange. Liminal.market provides proof of reserves on stocks and ETFs.
Inpired by liquity.org, it allows the user to stake his US Stocks and ETFs. By staking it, he can mint USDS stable coin as loan.
Following is the liquation process - the CDB is called Liquitys in this scenario
- Using Chainlink automation - initate Liquitys smart contract
- Liquitys notices that you have a margin call using Chainlink price feed
- Liquitys calls Liminal.market smart contract to liquidate your equity
- Liminal.market sell your stocks and ETFs as quickly as possible (within seconds)
- Liminal.market funds Liquitys broker account with fiat USD dollars.
- Liquitys can transfer the money to exchange where it's traded for USDS USDS is burned
How we built it
Two separate project where made to do this. We build the staking mechanism into Liminal.market, this early prototype We build the Liquitys smart contract and website Both are Solidity and Typescript project It uses Chainlink Pricefeeds and should use Chainlink automation to monitor prices, but we ran out of time
Challenges we ran into
We have been busy getting Liminal.market to Polygon mainnet so we only had 2 days to fully concentrate on this. It meant we had to pick and choose what we could implement.
Accomplishments that we're proud of
For 2 days we are happy with a prototype and a proof of concept.
What's next for US Stocks & ETFs as stable coin
We would like to continue with the development of the staking mechanisms, we believe it can bring great value into the blockchain world, extend the developer ecosystem with new CDP protocols and extend current protocols. With over 5.600 stocks and ETFs, this would affect Chainlink as the prices of the securities need to be provided as well as Automation will be critical.
Log in or sign up for Devpost to join the conversation.