What should be the next asset added as vault collateral in Polygon?

We are doing internal testing for the Polygon Matic Vault and besides MATIC / WMATIC we want to support other collateral assets on Polygon. The requirements are to:

  • Have a Chainlink Oracle TOKEN / USD on Polygon.
  • Be an 18 decimals token standard ERC-20 Token.

Please add in the comments which one do you like to generate a poll.

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ETH definetly has to be an asset.

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I would say USDC and USDT or a pool of stablecoins if that’s possible to do.

3crv USD would be great people can also earn yield.

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Hello! Dimsome here from mStable.

First of all, let me say that I really like what you are building and we are excited to hear that you guys looking to deploy on Polygon!

Secondly, I would like to propose adding mStable assets to the mix. mStable is also deployed on Polygon and I think it would be very interesting for many users to use.

There are two assets on Polygon: mUSD and imUSD. Both are ERC20 Tokens!

The Choices

1. mUSD

mUSD is a basketasset that is backed on Polygon by DAI, USDT, and USDC. mUSD is therefore always worth 1 USD and redeemable for the underlying stablecoins. It makes it a more diversified asset if we account for any stablecoins having some risk of losing its peg.

2. imUSD

imUSD is the mUSD that is deposited in SAVE. It is the interest-bearing ERC20 token and increases in value over time. The interest is generated from the underlying stablecoins that are deposited in Aave.

This asset could be something very unique as it would allow improving the collateralization ratio over time. One could still earn interest on their stablecoins, while having additional exposure to the TCAP token (and the crypto market as a whole).

3. interest-bearing assets as a choice for any stablecoins (most degen version)

Sooo hear me out: What if we could allow users to deposit any of the stablecoins and the user could select to directly deposit to get the interest-bearing variant?

Meaning, the user could have DAI and select that they would like also to earn a yield on their deposits, and that DAI would then be used to mint mUSD and deposit it in SAVE. Later, once the user decides to withdraw again, they can do so easily and get back the DAI (or any of the other stablecoin)

This is unique for Polygon because the gasfees are so damn good and low. Therefore a more complex contract call is not really an issue here.

Closing Thoughts

I think in general any of the choices would be a great addition. However, the 3rd option is the most UX-friendly as the user can get all the benefits (diversification and interest) without moving from Interface to Interface.

Let me know what you guys think and let’s make something awesome. The synergies are huge here :slight_smile:

For the current version, mUSD makes a lot of sense. I have some ideas for imUSD that we can review for an upgrade of the TCAP vaults.

I don’t see a chainlink oracle for mUSD / USD. how that would work? Do we have to use a USDC / USD oracle?

The current composition of mUSD on Polygon is 38.48% USDC, 23.16% DAI, and 38.37% USDT.

One way could be to aggregate the oracle data from the underlying stablecoins and weigh them relative to their share.

Have to check with our devs if there are better ways.

AAVE
SUSHI
QUICK would bring a sizeable horde of Polygon degens…

ERC-20, it would give Crytpex more exposure to be able to add its token to wallets such as MetaMask and etc… for holding or swap.