GDR #007: Preon Finance | Gasdrop Request

Note

Approval requires more than 50% of YES votes and a minimum threshold of 10k DIA voting power across $DIA, $ARB, and $STAR tokens. The weight of $ARB & $STAR is calculated by equalizing their fully diluted market cap with DIA's at the time of the vote's creation. The vote is active for 96 hours.

Project Overview

• Project Name: Preon Finance
• Project Website: https://preon.finance/
• Project Use Case: Collateralized debt position (CDP) lending platform that offers users 0% interest loans in the $STAR stablecoin when collateralized by crypto assets
• Oracle Use: The STAR/USD price feed oracle will enable accurate pricing of $STAR loans and collateral valuations on Preon Finance by displaying $STAR’s peg to the USD

Request for DIA Oracle Gasdrop Program

Preon Finance, a standalone protocol within the Sphere Finance ecosystem, is currently developing the premier 0%-interest CDP lending protocol. Our stablecoin, $STAR (which is also an omnichain fungible token/OFT), offers a plethora of utilities to borrowers, including a variety of yield generation and optimization opportunities through interactions with other protocols within the ecosystem (such as Dyson) and outside, with more utilities in development.

As a protocol, we believe in lowering the barrier of entry to DeFi use cases, both in terms of complexity and finances, which inspired us to create an intuitive and simple-to-use UI/UX on our platform, and to focus on capital efficiency. We also heavily prioritize the strength of our stablecoin’s peg, and have implemented numerous methods to maintain that peg, including overcollateralization of blue-chip crypto assets, a peg stability module (PSM), and a sophisticated loan-to-value ratio system which liquidates positions that exceed the ratio to automatically repay a portion of borrowers’ debts.

We would like to request support from the DIA oracle gas grant program to fund the STAR/USD price feed oracle. This price feed is essential for the core functioning of the Preon Finance protocol and platform, as it gives users insight into the exact relationship between $STAR and USD prices.

The STAR/USD price feed oracle will empower accurate valuations of $STAR stablecoin loans and collateral on Preon. This facilitates a smooth borrowing experience for users, allowing them to monitor key indicators for investments. It also enhances transparency on loan terms and conditions, upholding our accountable approach. We aim to build open communication and trust with our community. To gain a deeper understanding of why price feeds are necessary for our protocol, please refer to our docs.

The DIA oracle gas grant program can create enhanced reliability and accessibility for users of novel DeFi primitives like Preon Finance. We hope to receive your support to fully deliver on our roadmap.

We understand that approval of this request requires over 50% of YES votes from holders of Arbitrum, DIA, and $STAR. We are committed to providing any additional information required for the voting process.

Thank you for your consideration of our request.

The Preon Finance team

About DIA Oracle Gasdrop

DIA is supporting dApp development with an Arbitrum grant program to co-sponsor gas costs of oracle updates. The grant program is designed to facilitate the evolution of new DeFi use cases within the Arbitrum ecosystem. The program is funded by ARB tokens received from the Arbitrum airdrop. Learn more at https://www.diadata.org/oracle-gasdrop-arbitrum-grant/