ARC: Add TRYB to Aave V3 on Avalanche Network, Isolation Mode

Governance New Asset
1

The BiLira team would like to submit a proposal to onboard TRYB. The purpose of this AIP is to list BiLira (TRYB), the only and 1:1 Turkish Lira-backed stablecoin, on AAVE V3, Avalanche Network, Isolation Mode.

References
Link to:

Paragraph Summary

The BiLira (TRYB) token is a full-reserve stable cryptocurrency that is built on the Ethereum blockchain and is available on 6 different blockchains, issued and managed by the BiLira organization, backed by the Turkish Lira and collateralized 1 : 1, secure and compatible with ERC-20 token standards. As emerging technologies continue to expand across the globe, the concept of open internet has allowed individuals all around the globe to instantly, securely and effortlessly share value and this created a need for non-USD stablecoins. We want to add TRYB to AAVE V3.

Motivation

BiLira offers every Turkish citizen a seamless connection to the decentralized internet. As emerging technologies continue to expand across the globe, the concept of the open internet - a fundamental network of information that is free and accessible to everyone regardless of financial motives - has allowed individuals all around the globe to instantly, securely, and effortlessly share information. The contributions to this advancement are immense and its impact is still unraveling around the world.

Today, crypto assets and blockchain technology provide the means to transfer assets globally, securely, and at a low cost. Establishing an open internet based on value exchange can pave the way for a seamless, borderless and integrated world, which can eliminate barriers that enable the development of a global marketplace that is both economical and inclusive of everyone.

Specifications

1.What is the link between the author of the AIP and the Asset?

BiLira Team is the author of the AIP and the Asset.

2.Provide a brief high-level overview of the project and the token

The BiLira (TRYB) token is a full-reserve stable cryptocurrency that is built on 6 different blockchains, issued and managed by the BiLira organization, backed by the Turkish Lira and collateralized 1 : 1, secure and compatible with ERC-20 token standards

BiLira goes through regular audits performed by independent 3rd parties which can be found here.

BiLira (TRYB)

TRYB is a Turkish Lira backed stablecoin. BiLira aims to bridge the gap between web 2.0 (monetized by fiat) and web 3.0 (fueled by crypto assets), to offer a convenient on-ramp and off-ramp solution for crypto traders to combat high volatility and to support the future applications of decentralized finance.

The legacy financial system is dependent on private organizations and third-party services which makes it challenging for individuals to connect to the open internet and transact with one another. The current infrastructure does not support a transition from Web 2.0 banking system to the Web 3.0 crypto-based native web currencies. Since mainstream cryptocurrencies such as Bitcoin and Ethereum are volatile, the public is looking for a better way that is more stable and safe to interact with digital assets and cryptocurrencies

Just as information flows freely between web browsers, BiLira aims to make transferring value between wallets effortless, instant, and borderless for everyone.

3.Explain positioning of the token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?

TRYB (BiLira) is a great fit both as a borrow and collateral asset for the Aave ecosystem.

AAVE will be onboarding a lot of new users from a very active Turkish crypto community by listing the reliable and only Turkish Lira backed stablecoin, TRYB (BiLira). Turkey was the world’s fourth biggest cryptocurrency market in 2020 and became the largest cryptocurrency market in the Middle East in 2021. By enabling this user base to be able to use their currency as collateral, Aave will welcome a lot of new users to enter into DeFi.

There are also multiple institutional and retail players that want to borrow TRYB to market make in Turkish Lira denominated crypto markets.

4.Provide a brief history of the project and the different components: DAO (is it live?) products (are they live?). How did it overcome some of the challenges it faced?

The stablecoin TRYB(BiLira) was released in early 2020.
As it is a 1:1 fiat backed stablecoin doesn’t have any pegging issues due to its nature.

5.How is the asset currently used?

Advanced fiat on/off-ramp:
BiLira offers a convenient on-ramp and off-ramp solution for crypto traders to combat high price volatility and to support the future applications of decentralized finance. BiLira builds a fiat <> crypto on/off ramp for users to interact with global exchanges and DEXs as it is the only Turkish Lira backed stablecoin.

Global coverage:

It will allow Turkish Users to participate on Aave with only a domestic bank transfer. Aave will be onboarding a lot of new users from a very active Turkish crypto community. Turkey was the world’s fourth biggest cryptocurrency market in 2020 and became the largest cryptocurrency market in the Middle East in 2021. Turkey topped a million trades a day by the end of 2021. With over 40 exchanges operating in Turkey, the Middle East’s largest economy and home to around 85mn people, the adoption of cryptocurrencies is ever expanding. Turkish residents using cryptocurrencies were recorded at 16% to 20% between 2020 and 2022. Latest surveys show there are over 5 to 6 million Turkish people with cryptocurrency accounts. A cryptocurrency exchange in the country reported nearly 5 million users and had a trading volume of $203.5 million.

Towards Decentralization:

Turkish crypto users generally start their crypto journey through the local exchanges because they do not have to deal with the complexities of the blockchain technicalities, such as use of wallets and addresses. The BiLira team believes in the future of the Web3 decentralized ecosystem, where users control their assets via their own wallets, removing intermediaries and interacting with DeFi.

6.Emission schedule

BiLira is always fully collateralized and backed 1:1 by TRY fiat reserves.

7.Token (& Protocol) permissions (minting) and upgradability. Is there a multisig? What can it do? Who are the signers?

TRYB tokens are backed 1:1 with TRY fiat reserves, BiLira (1 TRYB) is always supported by one unit of the reserve currency (1 TRY). There is no risk for users when our customers withdraw TRYB to Turkish Lira we burn that amount of TRYB.

MasterMinter - adds and removes minters and increases their minting allowance (2 out of 3)

Minters - create and destroy tokens (2 out of 3)

Pauser - pause the contract, which prevents all transfers, minting, and burning (2 out of 3)

Blacklister - prevent all transfers to or from a particular address, and prevents that address from minting or burning (2 out of 3)

Owner - re-assign any of the roles except for admin (2 out of 3)

Admin - upgrade the contract, and re-assign itself (2 out of 3)

The signers of the Multisig are the cofounders of the BiLira Company

8.Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)

Daily trading volume, market capitalization, and other relevant analytics

  • Total Issuance: 3,782,105,670 TRY
  • Total Redemption: 3,642,521,623 TRY
  • TRYB AUM: 139,584,047 TRY
  • Fiat Reserves: 139,584,047 TRY
  • Total on-chain transfer volume: 30,002,670,196 TRYB
  • Listed on FTX, MEXC, Bitget, Bittrex, Liquid, Pangolin and DFX
  • Oracle data for TRYB is available on Chainlink

9.Social channels data (Size of communities, activity on Github)

The total size of the media community is over 50,000+ users across all social media platforms

Risk Parameters

V3 Isolation mode:

  • Loan-to-Value (LTV): 60%
  • Liquidation Threshold: 70%
  • Liquidation Bonus: 10%
  • Reserve Factor: 10%

$10 Mil USD Debt Ceiling (Equivalent to 185 Mil TRY Debt Ceiling)

10. Contracts date of deployments, number of transactions, number of holders for tokens

On Ethereum:

  • Date of Deployment: 2019-07-19
  • Ethereum | Token Tracker
  • Number of Transactions: 19594 transfers
  • Number of holders for token: 829

On Avalanche:

On Solana:

  • Date of Deployment: June 20th 2022
  • Solana | Token Tracker
  • Number of Transactions: 10003
  • Number of holders for token: 924

On BNB Chain:

  • Date of Deployment: 2021-05-26
  • BNB | Token Tracker
  • Number of Transactions: 1154
  • Number of holders for token: 208

On Polygon:

  • Date of Deployment: November 20th 2021
  • Polygon | Token Tracker
  • Number of Transactions: 4550
  • Number of holders for token: 102

Security Considerations

Risks inherent to TRY currency reserves

Besides possible smart-contract risks,TRYB stablecoins are backed by fiat TRY and therefore, are the subject to fiat currency risk.

Risk Analysis

  • There is no regulation on stablecoins in Turkey. BiLira has been audited by the Central Bank of Turkey. Users need to go through the KYC and AML process.
  • There haven’t been any hacks or vulnerabilities on the project
  • The contract is verified on the explorers mentioned above in market statistics
  • The project can’t be considered a security as TRYB tokens are backed 1:1 with TRY fiat reserves, BiLira (1 TRYB) is always supported by one unit of the reserve currency (1 TRY). There is no risk for users when our customers withdraw TRYB to Turkish Lira we burn that amount of TRYB.
13 Likes
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I am following this project. I like and i support it :pinched_fingers: :+1:

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TRYB would be a great addition to Aave v3 for the Turkish community.
I would move all my TRYB to Aave if this happens.
TRYB being the only stablecoin for Turkish Lira, Aave will benefit by onboarding many users with this token.

I’m very excited about this proposal!

8 Likes
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I have been using TRYB to access DeFi for a while. The project is well known in Turkey, I think it would draw many Turkish users to Aave, I support this proposal

8 Likes
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having TRYB on Aave is a must especially considering the Turkish crypto community is among the top in terms of user number and transaction counts. it will also be beneficial to have stablecoins from different parts of the world in the future on AAVE because it will increase our exposure to different communities.

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Great proposal! As a fellow Turkish, I’d be glad to see this go through. I’ve been following BiLira (TRYB) work since 2020 and have seen consistency in their development. In addition little known fact is that BiLira (TRYB) is the first ever stablecoin issued in Avalanche network, showing TRYB’s commitment to contribute on building a DeFi ecosystem.

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I’ve been following this project for two and a half years. It’s time to take this project to the place it deserves. I hope I see my TRYB’s on the AAVE platform.

Long live DeFi :blue_heart:

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I’ve been utilizing and following Bilira #TRYB for a long time. In addition to steadily enhancing its position on the global and Turkish stock markets, Bilira also collaborates with potents of the Defi ecosystem. AAVE, in my opinion, is among the greatest.

I can’t wait to move all of my TRYB to AAVE if it happens :star_struck::star_struck::star_struck::star_struck:

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TRYB is one of the leading crypto organisations around the MENA region. They have a B2C web platform as a stablecoin (which is a very rare occasion tbh) to provide users with a direct on-ramp to the non-custodial wallets. Other fiat gateways are just exchanges with different rules. I see a great fit between AAVE and BiLira’s capabilities.

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Great proposal and opportunity for Turkish Aave users! Looking forward to using TRYB on Aave :star_struck:

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Even though there is no regulation in Turkey for stablecoins, BiLira has been audited by the Central Bank of Turkey and uses KYC and AML processes for maintaining risk and security considerations. Also, it has a very low fee for TRYB redemption. Proposal will be a good addition to the AAVE platform, Avalanche Network, and Turkish community.

5 Likes
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Aave is a strong supporter of Stablecoins diversity, and there’s natural synergies between the avalanche network & the turkish community.

isolation mode allows aave to onboard this asset with limited risk and the expected use-case for this asset is to be used as borrowed currency and not really as collateral.

in support of an onboarding with 0% LTV and with the risk parameters of deposit & debt cap the riskDAO will consider safe.

For the community expressing their support here, thanks for participating in the governance forum, the message was heard, from now on, let’s focus on risk parameters and governance process.

while the supportive posts are nice to read, they add noise to the discussion at this point, please refrain from adding new one on this thread.

8 Likes
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Thanks for your support Marc!

Our community is excited to be listed on Aave and are very helpful in commenting here why they think it’s a good fit.

We will keep this proposal going by commenting here the risk parameters and deposit debt cap so everyone can share what they feel on those.

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Suggested Risk Parameters for TRYB-BiLira(v3 Isolation Mode):
LTV: 40%
Liquidation Threshold: 70%
Liquidation Bonus: 10%
Reserve Factor: 10%
Debt Ceiling: $10 Mil USD Debt Ceiling (Equivalent to 185 Mil TRY Debt Ceiling)

5 Likes
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there is no use case for TRYB as collateral, 0% LTV is the right fit.

1 Like
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Updated Suggested Risk Parameters for TRYB-BiLira(v3 Isolation Mode):
LTV: 0%
Liquidation Threshold: 70%
Liquidation Bonus: 10%
Reserve Factor: 10%

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I have been using TRYB as stable coin for my transfer for a long time. It will be good to see TRYB at AAVE on Avalanche network.

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All our support is with you. I hope we can see you on Avalanche Network.

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Dear Marc,

Do we have any updates on the onboarding of TRYB? We are very curious about it… already positioned on BiLira and ready to use it on AAVE. It would be delightful if we had it on AAVE as soon as possible. Thanks.

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Thought we would jump in and give some initial thoughts.

When considering this, we have to consider the amount of TRYB on chain at a given moment and the liquidity there. Looks like there is about $55k of liquidity on Avax (Pangolin): Very miniscule. Prices diverge from the Lira constantly and volatility for an already very volatile currency is massive. Using this info, let’s assume $55k or so of TRYB is deposited into Aave. Anything more and markets just seem immensely unstable given current liquidity. With ~$50k, and in isolation mode, TRYB is just so new in the crypto space that we could literally find 0 applications that utilize the token.

Therefore, any borrows of TRYB would pretty much purely be speculators selling and effectively shorting the token. If this a healthy scenario for TRYB? Further, for users who do happen to enjoy holding LIRA/TRYB, they’ll earn what… like 2/3%? Anything higher on the utilization curve would cause the borrow side apr to skyrocket and therefore prove inefficient for LIRA shorters as they could just short more effectively in a forex market. At the end of the day, we’re looking at pretty much negligible revenue for Aave and a market where LIRA/TRYB is only used to speculate shorts on chain.

This is why we are currently leaning towards a no. There is just not enough on chain TRYB liquidity and not enough use cases for the token in chain to justify this Aave listing in our opinions. However, we are still very open to discussions and possibly changing our minds on the matter before we submit a vote in the near future.

PS: C’mon now; whether it’s the core team or a passionate member(s), do you think creating 10 new accounts to comment the same positive things and coincidently like every other positive comment is something we should still be doing lol.

1 Like