Problem:
Despite my very frequent warnings, SILK is becoming increasingly centralized, 18.6 the collateral centralization reached 56%.
Reasons:
- Low incentives ( caused by the collapse of SHD and the entire SCRT ecosystem )
- low Max TVL for decentralized assets compared to centralized stablecoins
- High max SILK mint limit for centralized stablecoins
Solution:
- even wider use of decentralized LSDs
- reduce SHD issuance until the situation improves
- more real yield
- reduce max borrowing for USDC and USDT
- more expansion of SILK outside the Secret Network
- SILK LSDS
- more SILK utilities
This post covers point 1.
What is rETH:
rETH it is the most decentralized, pretty much adopted Ethereum LSD by RocketPool
As its adoption begins to spread across the Cosmos ecosystem, SILK should not stay behind.
rETH is currently used on Demex, for support it will be necessary to open a dialogue with SL and Axelar
In the future it would also be good to replace SILK/ETH with SILK/rETH, potentially we can ask RocketPool for RPL incentives.
What is stIBCX:
stIBCX is an LSD managed by Stride for IBCX, the Cosmos index token
This asset may be another potential adoption port for SILK, both because IBCX is simply a simple tool for the masses to be invested in the entire Cosmos ecosystem, and because of the tokens it is mined for ( in the future we may create a proposal to mint for SILK )
ION ( DAO emitting IBCX ) also provides icentives, after the launch of SILK/stIBCX or any other pair we could make a request to ION to incentivize this pool
Proposed parameters ( Max TVL and initial SILK supply ):
rETH - 70% 500K
stIBCX - 70% 500K
