Collateral Onboarding Process

Collateral Onboarding Discussion

This post will cover our proposed structure of a Collateral Onboarding Proposal (HIP2) and which criteria a HIP2 should contain. The purpose of this topic is to gather input on what information is necessary, and what could be added/removed to have a more well-rounded and concise template for collateral onboarding proposals.

A Collateral Onboarding process will be a key part of Hubble Protocol as we begin to expand the assets we accept on the platform. The collateral we accept is directly correlated with protocol risk, and thus each new prospective collateral will need to run a process of community discussion and approval.

Collateral Onboarding Proposals, once live, will be posted in the Collateral Onboarding category, whereupon receiving approval, it will move into the Formal Proposal category as a HIP2. For more info on this, read through the Hubble Beta-Governance Process Overview.

Here are the questions the team believes are pertinent to a Collateral Onboarding Proposal:

Project Profile:

  1. What is the relevant project?

  2. Provide a brief overview of the project.

  3. Link the following:

  • Whitepaper/Litepaper

  • Docs

  • Website

  • dApp

  1. Who is the team? Is the team doxxed? Link to the team page if available.

  2. When did the project launch, and how much did they raise?

  3. What is the token distribution chart?

  4. Wallet addresses of top 10 holders?

  5. Link the most recent audits of the project.

  6. Is the code open source?

  7. Link to active communities.

For Yield-bearing assets (LPs, cTokens etc.): Answer the above questions for the asset issuer.


Asset profile:

  1. What is the relevant token?

  2. How is the collateral token minted? Is there a minting process?

  3. How is the collateral token used in its native ecosystem?

  4. Link the following:

  • All relevant Solana Token Address(es)

  • Coingecko

For Yield-bearing assets: Answer the above questions for all underlying assets, as well as the LP token/cToken itself.


Asset Liquidity:

  1. Historical Volume/Liquidity Stats on Solana

  2. Where can the asset be exchanged on Solana?

  • DEX & CEX links
  1. Link to oracle price

  2. Combined price chart with BTC and ETH (Available on Coingecko)

  3. What are the potential risks of adding this token as collateral?

For Yield-bearing assets: Answer the above questions for all underlying assets, as well as the LP token/cToken itself.


All suggestions and inputs are welcome. Note that we will be posting an exmaple of how this template will look in practice, which will be linked here.

2 Likes

Who are the top 10 holders?

I interpreted this as asking for a doxxed list of individuals, which in most cases is going to be impossible. Is this just asking for a list of wallet addresses?

3 Likes

Yes, this refers to wallet addresses. Edited post accordingly.

1 Like

Also the idea of KYC raises a good point which is should we care if a token was added for collateral which did have aspects of KYC. Given we wouldn’t have to KYC ourselves or even use that token - but would a show of support veer too far away from our ethos