Proposal: Add support for 1INCH Token

Governance New Asset
1

Summary:

This is a proposal for adding borrow/lend support for the 1inch token (1INCH) on Aave

Background:

The 1INCH token will be used to govern all 1inch network protocols, taking governance in the DeFi space to a new level. DeFi is a rapidly evolving space, but most governance modules are not designed to upgrade and change protocols quickly to respond to changes in the market. Therefore, we are introducing what we call the instant governance feature, which enables the community to vote for specific protocol settings under the decentralized autonomous organization (DAO) model, in a transparent, user-friendly and efficient way.

In the 18 months that the 1inch aggregator protocol has been live, it has processed over $12B in volume. Moreover, 1inch’s latest protocol has a TVL of over $700M.

The 1inch Foundation, located on the Cayman Islands, can mint new tokens, based on proposals made via DAO governance. Once a more advanced DAO governance functionality, which similar to that of Compound, has been implemented, only the DAO will have the authority to issue new tokens.

Why a1INCH:

1INCH, the native token of our platform, is already a well-traded asset with an average daily trading volume in excess of $100M and tradable on most major exchanges, including Binance, Huobi, OKEX, Poloniex and Coinomi.

Our community consists of experienced DeFi traders and amasses over 90,000 active wallets that use our smart contracts. We believe that the addition of our token to Aave will step up activity on the platform and provide a vast number of opportunities to the communities of both products. A natural next step is to now create a lending market, and we can’t think of a better place to do that than the Aave community. Being able to borrow and lend 1INCH tokens would facilitate:

  • users’ increased exposure to synth assets and their market presence.
  • creating interest bearing a1INCH, which can be both staked in other protocols and loaned out to DAOs with unsecured loans via Credit Delegation.
  • creating leveraged 1INCH trades.

Benefits for Aave:

  • 1inch has a very active community which would bring more users and liquidity to Aave.
  • 1inch earns native yield through liquidity mining on the 1inch exchange.
  • With deposit rates so high, it becomes financially attractive for people to borrow funds with 1INCH as collateral.
  • More multi-platform initiatives in the future between our protocols. The 1inch aggregator already supports liquidations from Aave and synth assets swaps.

Extra:

Aave platform could stake 1INCH tokens in st1INCH, same way as stored DAI inside CHAI a while ago. This would allow to have additional earnings for liquidity providers.

Sources:

16 Likes
2

Thank you, @k06a!

The genesis team released the Aave Governance V2 and since then the listing process is completely open and decentralized. It’s only required that 0.5% of the total supply of AAVE is gathered as proposition power - held or delegated - to submit the proposal. Please see Governance, specifically the asset listing tutorial.

Since you only propose basic listing (no collateral risk assessment needed), it should be a relatively simple process.

Edit: I just noticed on re-reading that you mention collateral use as well, better make it more clear in the proposal.

1 Like
3

What an awsome proposal !
Sure I’m for it 1inch is widely known as the best Dex Aggregator in the market today with one of the best teams yeah easy one.

The part I’m really excited about as a 1inch holder myself is being able to stake st1INCH that’s the best part yet.

Hope the community can move this promptly so we can keep moving forward at a nice pace :+1: :pray::raised_hands:

2 Likes
4

Impatiently waiting for a1INCH appearing :star_struck: :hugs:

2 Likes
5

completely support this! 1inch will be great!!! :grinning: :grinning: :grinning:

1 Like
6

This is awesome, specially st1inch staking! How do we make this happen? how long could it take?

1 Like
7

1inch team could assist in development, just let us know what’s needed.

2 Likes
8

Hey guys! Hey @k06a !

With the release of governance V2, the listing of new assets is completely decentralized. It’s enough to collect 0.5% of the supply of AAVE (both owned and/or delegated as proposition power) to create the proposal to list any asset, including of course 1INCH. I advise to check our documentation Governance - Governance (there is a tutorial specific for asset listing) and we can of course assist on the technicalities!

2 Likes
9

YES !!! YES !!!

We NEED THIS TO MOVE ASAP !!!

PLEEEASE

:beers:

2 Likes
10

I would like to see 1inch

2 Likes
11

@k06a let’s go!

1 Like
12

Hey @k06a, nice idea. Let’s do it :smiley: Are you a member of the 1INCH genesis team yourself ? A 1INCH team member would be helpful, let me push this proposal into their discord.

Proposal suggestion :
I suggest to add support for the st1INCH rather then 1INCH, so Aave and 1INCH ecosystem can benefit from this.
This is what we have done with xSushi, let’s continue on this path.

Proposal next steps :

The whole process is detailed here.

1 Like
13

Thx! st1INCH is not transferable, it’s fake token, but could be wrapped into something transferable like wst1INCH

2 Likes
14

Hi Anton,

As mentioned in discord #:construction:1inch-protocol, we can now apply for x1INCH token.
There’s active proposal to add xSUSHI to Aave by 0xMaki, so you could simply replicate the application.

I’m in touch with both X-Token and Blockchain Labs teams (who did the audit of x1INCH), so we could support the application by providing all necessary info.

@TheoRochaix and I are happy to assist you with the application. We think it’s an absolute win for 1inch stakers!

2 Likes
15

I did not know that, thanks for sharing.
Then 1INCH itself would be a great start

1 Like
16

I think this gets us in the proper path

x1inch seems like a great idea

Can’t wait let’s move this forward asap !

1 Like
17

I’d also love to see x1inch(a/b) usable as collateral on Aave. There’s a lot of liquidity in those contracts that could use freeing up.

1 Like
18

it would be cool to add the support to a wrapped st1inch so stakers like me could benefit of this too

2 Likes
19

Massively in favour of this proposal after seeing the value deposited from xSushi .

2 Likes
20

Let’s make this happen @k06a :+1:

1 Like