Enable $AXS as collateral on Aave

Sentence Rational

Enable $AXS lending market on Aave.

References

Link to:

Paragraph Summary

Axie Infinity is a Pokémon-inspired universe where anyone can earn tokens through skilled gameplay and contributions to the ecosystem. Players can battle, collect, raise, and build a land-based kingdom for their pets.

All art assets and Axie genetic data can be easily accessed by 3rd parties, allowing community developers to build their own tools and experiences in the Axie Infinity universe.

While still in early access, Axie is ranked the #1 Ethereum game by daily, weekly, and monthly active users. It has generated over 13,000 ETH in revenue (16M+ USD) so far.

Motivation

Add $AXS as a lending currency into Aave money markets.

Specifications

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

@Sutton (tw: ssSuttonSss) is an Axie Infinity guild manager and player at @AXGaming_sec .

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

**Axie Infinity Shards(AXS) are an ERC-20 governance token for the Axie Universe. **

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

By listing $AXS you will be able to leverage an entire nation of gamers.

  1. 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?
    **
    ** Version 1 First half 2021 / Staking dashboard released

AXS holders can stake their tokens through the staking dashboard and participate in governance votes brought forward by the Sky Mavis team.

These votes will revolve around which teams should receive funding from the ecosystem fund, and how the Community treasury should be distributed.

Version 2 - Early 2022

More on-chain votes about smaller issues.

Potentially changing the way votes are being counted from 1 token 1 vote to Quadratic voting.

Version 3 - September 2023 / Decentralized Organization

AXS holders determine which governance framework should be used and how much should be voted on. Some decisions will not be up for debate such as token supply which is iron-clad in smart contracts.

Potential things that can be voted on:

  • Should Axie Infinity Limited continue to pay Sky Mavis to develop Axie Infinity?

  • Should Axie Infinity use the marketplace created by Sky Mavis?

  • How should the Community Treasury be used to reward AXS holders and the broader Axie community?

  • Should the Community Treasury funds be attached to any yield farming/staking services such as Yearn.finance or Rari.Capital?

  1. How is the asset currently used?

*. In early 2021, the Community Treasury went live. The Community Treasury began to receive revenues generated by Axie Infinity as well as a portion of staking rewards. This treasury is by AXS stakers eventually, once the network has become sufficiently decentralized. A more detailed overview of the Treasury can be found here.

The token has been designed in collaboration with Delphi Digital.
6. Emission schedule
AXS will be unlocked in a pre-determined schedule which lasts for 65 months from the public sale. The initial circulating supply is set to 59,985,000 AXS - 22.22% of the total supply.


The above chart illustrates the maximum possible issuance of AXS over the coming years, and the total supply will never exceed 270,000,000

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

1. Market Cap: 971.200.273 US$
2. 24h Volume: 697.131.667 US$
3. Volatility: High
4. Exchanges: Uniswap V3, Sushiswap, Bancor Network, Binance, Gate.io , MXC, BKX, BiKi, etc. As reported by [CoinGeicko].

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

**166.9K followers on [Twitter: /AxieInfinity) 378k members in [Discord ]

  1. Contracts date of deployments, number of transactions, number of holders for tokens
  • IEO Start Date: Oct 26, 2020
  • IEO End Date: Nov 4, 2020
  • Number of Transactions: 154,554
  • Number of Holders: 5546
Should $AXS be added?
  • Yes
  • No

0 voters

6 Likes

can you share any future scaling plans outside of Ronin? i generally support adding AXS, but it seems to make the most sense to enable deposits where the AXS economic activity occurs and currently these facts are misaligned. Similar to how Aavegotchi is interested in adding GHST on polygon.

(prior fat finger delete)

What a great initiative!

How about scaling it to “Gaming token loans” as a whole category.

Not only $AXS, but also SLP, and others gaming tokens which are coming with strength like IOI, Sand, Mana, etc… Which aim to follow the great trajectory of Axie Infinity and offer people an additional income layer thru gaming.

Additionally I would think about the potential of offering loans on gaming NFTs, for example borrow against a Axie NFT, in which eventually the lender could make use of the Axie NFT to play or scholar’it till the loan gets payed back… and even Scholarship’s and Scholarships Index’s as collateral next, similar to https://alchemix.fi/ where % of the earnings is set to lender. Self payed loan thru gaming.

thank you.

1 Like

In theory they’re going to build a swap within ronin, maybe anyswap can help out w the cross-chain issue although ronin is super fast to deposit and withdraw.

AXS is overpriced for tokens due to the current overheating and it would be unwise to assess whether he is live for lending at this time. I think we should wait for the heat to cool down before evaluating

1 Like

Axie Infinity is a centralized game that is running on centralized side chain. If you research RONIN chain, It is a POA chain that is running by some selected node operators. I would not support this centralized coin on AAVE other than stablecoins. It’s a huge counter party risk for the platform.

2 Likes

To be fair though, there are plenty of assets on AAVE with a high counterparty risk. We can treat AXS the same as those assets and just remove the ability to use it as collateral. This creates opportunity for people who want to borrow AXS as well as people who want to make interest on their AXS. I think AAVE should provide liquidity wherever it can if there’s little risk to the protocol. The snapshot proposal does propose having AXS be collateral though, so that is a little concerning.

3 Likes

secondarily, is there a large borrow demand for AXS or examples of this unmet demand?

Thanks for this ARC

Could you please add details on point 7. Token (& Protocol) permissions (minting) and upgradability. Is there a multisig? What can it do? Who are the signers?

Also looking forward to seeing the risk analysis as per the process described here New Asset Listing - Governance

Continuing with the points of @marklar , what exactly is the use case of borrowing $AXS from Aave at the current moment? Only for staking for governance or already to receive fees from the Axie ecosystem?

If the use case is only governance, the listing as only borrowing currency is not so good in my opinion, as it would enable also attack vectors based on voting to the Axie ecosystem.

More on the technical side, is the stake mechanism tokenized @Sutton and in Ethereum? That could open interesting opportunities on the collateral side.

I accidently deleted my previous post…
I reckon it would be pretty popular with speculators, some people think its too high and could borrow to sell and try to buy back at a lower price.

I can’t agree more on this.