Proposal: add support for ANT

Hi Aave fam,

I’m Jorge, a co-founder of Aragon and CEO at Aragon One, the company that has developed most of Aragon’s infrastructure to date.

I’d like to make a proposal for Aave to support ANT as a collateral asset. We think being able to lend and borrow ANT on Aave would open up several exciting opportunities for both Aragon and Aave.

Why aANT

ANT, the native token of the Aragon Network is already a well traded token with average daily trading volume in excess of $40m and tradable on most major exchanges including Binance, Huobi and OKEX.

A natural progression is to now create an ANT lending market and we can’t think of a better place to do that than with the Aave community. Being able to borrow and lend ANT would enable holders to:

  • Increase exposure to bonded ANT assets or other ANT based lockdrops
  • Create interest bearing aANT that can both be staked in other protocols (a necessity for an insurance product for DAOs we are currently researching) and loaned out to DAOs with unsecured loans via Credit Delegation (we have tons of ideas for uncollateralized DAO to DAO lending without legal agreements)
  • Increase voting power in the Aragon Network DAO to vote on important proposals
  • Engage in ANT farming
  • Create leveraged ANT trades leveraged derivatives

To kick off the ANT lending market on Aave, the Aragon Association and a number of other well known institutionals looking to put their ANT to work are ready to seed the lending market with over $10m worth of ANT.

Future Aave x Aragon collabs

Besides from developing an ANT lending market, there are other initiatives that we’re excited to develop with the Aave community. Over $350m worth of assets are currently secured by Aragon DAOs and we expect that number to surpass $1 billion by the end of 2020.

We’re interested in exploring a deeper integration with Aave that would enable Aragon DAOs to:

  • Deposit their entire vault of supported assets as collateral in Aave
  • DAO to DAO loans using Aave Credit Delegation
  • Convert specific assets in their vault into aTokens
  • On-ramp off-ramp to fiat (assuming this eventually be possible with Aave)

Other interesting things that Aragon could help Aave with are:

Incredibly excited about everything that we can build together.

Jorge :eagle:

17 Likes

I for one believe that both the addition of ANT as a collateral and the further collaboration between Aragon and Aave is a spectacular idea. I hope we can put it up for a vote and implementation after the migration and V2 kickoff is enabled by the community.

6 Likes

I second this. ANT will be a hugely important asset as defi progresses!

2 Likes

We at P2P Capital are very excited to have ANT moving forward in DeFi, building around a financial infrastructure around it, and of course, allowing more people to participate in Aragon Network DAO, and hopefully in following networks such as Aragon Chain.

2 Likes

Disclaimer: Delphi Digital holds both LEND and ANJ tokens

We are very much in favour of this proposal and excited to see both teams explore the design space for collaboration. We are working on a longer-term proposal for the Aave ecosystem which we believe aligns well with some of the future ideas, enabling Aave to become a credit protocol that allows ecosystems like Aragon to boostrap their own credit markets and backstop the risk themselves.

It’s worth remembering that Aragon’s AUM fluctuates between $200-400M depending on the day and the total value governed (combined market cap of protocols that use Aragon for its governance) is well above $3B. This is a lot of value that Aave can tap into. Similarly, there is a large amount of unused credit on Aave which could be used to fund DAO development.

Generally, we’re very excited about the long-term potential of Aave + Aragon enabling both collateralised and uncollateralised DAO to DAO lending. To begin with, most of this could be done with the current credit delegation feature, with reputational damage acting as the primary deterrent for non-payment. Eventually, I think you could have loan covenants defined using an Aragon Agreement, issued using Aave and enforced programatically and using the Court. Objective covenants could be enforced programatically whereas subjective covenants could be ruled upon by the court. For instance, think of something like an EU Development Fund type loan where the amount to be repaid depends on whether certain objective and subjective milestones are hit.

Ultimately, we see Agreements and Court as core primitives for advanced credit markets. With Aave being the leading credit platform, we see a lot of potential for a combination of Aragon and Aave enabling a much wider design space of potential loan products and enforcement options.

6 Likes

This collaboration has a lot of potential. I think AAVE and Aragon can both benefit greatly from the proposed ideas. Let’s make it happen!

1 Like

As a market maker for ANT markets we are excited by the amount of involvement and effort Aragon has had so far in Defi governance and now hopefully AAVE. We are looking forward to supplying liquidity to help these initiatives gain momentum. We also believe a lending market will spur the potential for building an options market, as well as leveraged derivatives in ANT.

3 Likes

would be great to see this implemented!

2 Likes

I would love to see this implemented too!

2 Likes