LQIP-8 — Seed LUSD in Tarot lending pools on Arbitrum [5,000 LUSD]
1. Goals
The goal of this proposal is to seed LUSD supply in Tarot lending pools for LUSD/USDC and ETH/LUSD pairs on Arbitrum.
2. Benefit & Impact
Seeding LUSD in Tarot lending pools for the LUSD/USDC and ETH/LUSD pairs on Arbitrum would have the following benefits:
- Increase utility of LUSD by creating an opportunity for single-sided staking yield.
- Grow and improve liquidity by enabling LUSD LPs to borrow against or leverage their positions.
- Improve capital efficiency as supplied LUSD will indirectly increase liquidity for these two pairs.
3. Context
Tarot is a multi-chain, decentralized lending protocol where users can participate as lenders or borrowers in isolated lending pools.
Lenders can supply tokens to any lending pool in the Tarot Protocol to earn passive yield without impermanent loss. Borrowers can deposit LP tokens in a lending pool to borrow additional tokens in the token pair. This enables borrowers to leverage their LP tokens for even more LP tokens, allowing for leveraged yield farming and enhanced LP rewards.
Allocating some initial supply to these lending pools will help catalyze and kickstart activity by making LUSD available for borrowing.
4. Scope & Deliverables
Seed LUSD-based Tarot lending pools on Arbitrum by supplying 5,000 LUSD.
5. Timeline
Upon receiving this grant, the timeline for seeding initial LUSD supply in these pools is one (1) week.
6. Dependencies
No dependencies
7. Ask & Payment
5,000 LUSD to seed sufficient liquidity across lending pools for LUSD/USDC and ETH/LUSD pairs.
LUSD should be sent on Arbitrum to the following address: 0xd204e3dc1937d3a30fc6f20abc48ac5506c94d1e
8. References & Useful Links
Website: https://www.tarot.to/
Discord: Tarot
Twitter: https://twitter.com/TarotFinance