Spotlight 36: Cardano Spotlight: TAS Renaissance, Liqwid V2 and Boosted Staking

Hi,

What’s Spotlight? Every week, we highlight the most interesting events happening around Cardano. We want to help you cut the noise and find the signal.

ETF and halving have given us a narrative for a new bull market. Crypto has gone crazy in the past week, but it also means a time of a lot of noise. Today, we recognize the upcoming products or narratives we are excited about.

TAS Renaissance

The Ape Society continues to expand its offering throughout the bear, now bull market. They have established themselves in the DeFi space with Levvy Finance, a novel p2p lending/finance protocol paired with an order book model.

The team is still cooking and has introduced Renaissance V2. In the art world, the Renaissance signifies a cultural shift or a rediscovery and revival of art, architecture and literature. Part 1 of 3 largely revolved around rebranding their website and token.

Renaissance v2 introduces Cabins: The Game. This game-fi experiment aims to restructure the Cabins by the Ape Society. It also brings together the other offerings by TAS like Furniture, COTAS & Soc.

Cabin NFTs can be burnt to upgrade for CIP-68-based buildings, earning $SOC based on their tiers. You can create buildings like coffee shops, art galleries, banks, etc. They have introduced other gamified aspects like furniture, employees and more!

Renaissance is a 3 part series, and each part is more significant than the previous. Part 3 is expected to launch by the end of the year, and it will be exciting to see what it brings.

Liqwid V2

The team has been working on Liqwid V3, which has a similar model to Aave V3 with other novel features. 

It will feature modes like isolation and efficiency mode - where the market is limited to specific assets, and high risks can be permissioned. An example is an isolated market for Optim Bonds with Ada. These bonds have Ada collateral and thus don’t have a high liquidation risk, allowing up to 93% of the loan-to-collateral ratio. Users can take up to 14x leverage on the OPT bond tokens and use them to earn a yield on the protocol.

They will also be featuring supply caps & borrow caps, allowing new assets to be added more frequently. They have launched pools for volatile tokens like Min, AGIX & WMT. Previously, the market was limited to Ada and stablecoins. This opens up the doors for the protocol to onboard more users and attract more TVL.

Liquid TVL has grown to an ATH of $27M, while the native token LQ is up ~80%. This is significant as LQ has been one of the worst-performing tokens in Cardano DeFi, their work on tokenomics and Liqwid v2 has reversed this trend for now.

Boosted Staking

Cardano consensus is one of the most socially active layers in crypto. Ada staking is more than just a means of securing the network -> it's key to governance, catalyst funding, SPO health, ISPOs and partner chains.

If you understand, these things are immensely important to various individuals. A dRep wants your voting rights to pass his proposal; an SPO wants your delegation to keep his pool alive, and a partner chain needs you to secure his network.

Example:

The ISPO of your favourite token is live, and you staked all your 100K Ada.

But you want more exposure, so borrow staking rights worth 1M Ada on Optim. You promised the lender 6% APY instead of the regular 4% APY he was earning.

You have used leverage to 10x your staking rights with minimal risk (paying 2% APY).

Are you bullish DUST? Stake with leverage now. However, since we have many ongoing things, an individual will have difficulty finding the best yield. Imagine the guy who checks crypto once every six months. Do we think he cares about ISPOs and governance votes?

A new line of products will abstract and automate this for you. Optim has been early to this and is currently #4 by TVL. They offer various bonds like ISPO, SPO delegation, Catalyst and more. They plan to provide Ada, a derivative offering, a fungible version of their offering instead of non-fungible bonds.

Fluid Tokens recently introduced a boosted stake, allowing users to delegate to their FLDT ISPO while instantly taking a loan on your Ada. You deposit 100 Ada to ISPO and now take a 90 Ada loan! Thus, you have only deposited 10A, and the rest is liquid.

This is a truly Cardano-native solution and will be a significant catalyst for Cardano DeFi in the coming months or years. It will boost the yield for participants through actual demand. We will cover this more in our upcoming editions, so stay tuned!

Best content of the week

Watch: Cardano Ballot & CIP 1694.

Read: Cardano DeFi Q3 Report

Meme of the week

The plot thickens! Who is she?

Credits:MCJ

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