Should SquidDAO create a Fuse pool on Rari Capital (to be named "123 Conch Street") with the following factors?

TLDR: For: Approval of the creation of the Fuse Pool on Rari Capital (https://app.rari.capital/) Against: Do Nothing

Context To introduce a Rari Fuse pool (123 Conch Street) with the intention of creating a marketplace for sSQUID/wsSQUID holders to borrow against their Staked SQUID without the need to sell it, as well as give the potential for users to fold there positions as an investment strategy (9,9);

Furthermore we have an understanding with the Inverse Finance team to Seed and Supply $DOLA to our Fuse Pool ($INV)

What is a fuse pool: The Fuse platform enables anyone to instantly create their own lending and borrowing pool. Each Fuse pool is essentially a fork of the Compound protocol. To put it simply this is something that we have to deploy and set up on our own.

Benefits

1. Fuse Pool acts as additional passive income for the DAO as platform fees are usually 10%;
2. Will give the sSQUID holders an opportunity to borrow against their assets without having the need to sell;
3. Create added synergies with SquidDAO partners if we whitelist and onboard their assets into our Fuse Pool
4. All major OHM forks have their own lending markets (Wonderland has Abracadabra, Olympus DAO had Abracadabra but now has 4 Fuse pools that support it and expected Market.xyz to support it on Polygon chain ($gOHM), Klima DAO has its own Fuse pool on Polygon provided by Market.xyz)
5. Great exposure for SquidDAO protocol to show that it has a lending market. We will be the only OHM fork with a Fuse Pool on ETH chain.

Considerations/Risks

1. Degen strategies of folding sSQUID,ie. the famous 9,9 strategy. Downside is if a majority of users adopt this strategy, then this will create heavy buying pressure which could then be coupled with severe price declines as a result of future liquidations
2. Smart contract risks associated with Rari Capital Fuse Pool
3. If we onboard a lot of unique partner assets and heavy borrowing is done against them, the liquidations on the specific partner tokens might make our Fuse Pool insolvent and not at the fault of sSQUID being insolvent.

How to mitigate the risks

1. Degens will be Degens (however limiting the borrowing limit to 45% seems prudent as Klima DAO has shown on Polygon, plus in Polygon it is much more accessible to the average Degen as opposed to Squid Holders who operate on a far more expensive chain, and therefore are more savvy investors)
2. Smart contract risks are present in all of DeFI, and by picking Fuse we are in the same boat as all other protocols using Rari Fuse. .
3. Prudent token selection to be done with pros and cons on each asset that we plan to onboard as a collateral as well as the borrowable tokens.

Creation of a Fuse Pool on Rari Capital ($RGT rari.capital)

It is recommended that the DAO multi-sig deploy the Fuse pool as it will generate "platform fees" which if widely used will become an added source of income to Squid DAO

Need help in picking: Name: (Shortlisted names are: "Pineapple" “Tropical Sea” , “Ocean Floor”, “mesopelagic zone” , “122 Conch Street” (squidward's address)

Platform Fee: 10% Rationale: Rari Recommends 0% but most of the Fuse pools on the platform have 10% platform fees this is inline with the other Fuse Pools. This is an added benefit to creating a lending platform for the SquidDAO community and help the DAO generate extra income.

Close Factor: 50% Rationale: Rari Recommends 50%, this is the max liquidation possible on one position. This will make it less aggressive than a 100% closure of said position, especially if the borrower is using wsSQUID / sSQUID as collateral, and will not create a large sell order. We could drop it down but would risk making the pool insolvent.

Liquidation Incentive 8% Rational: This could be higher to incentivize liquidators to pick our pool first in the event of major crashes, but that is a double edge sword as in a scenario of a flash crash bots would target our pool first as it has the "juicy" discount

Assets to On-Board: (After initial onboarding of the assets below, any new asset to be onboarded will require Snapshot approval)

wsSQUID/sSQUID max LTV: 40% (as agreed upon with the Kraken group) Reserve Factor: 10% (as recommended by Rari, we could raise it for wsSQUID/sSQUID for the pools health) Admin Fee: 0% (as recommended by Rari) Interest Rate Model: JumpRate (as recommended, and what most use) Price Oracle: SQUID/ETH Sushi LP (SLP) combined withETH/USD Chainlink

gOHM max LTV: 69% Reserve Factor: 12.5% (to hedge against volatility,) Admin Fee: 0% (as recommended by Rari) Interest Rate Model: JumpRate (as recommended, and what most use)

Both $gOHM and $wsSQUID/$sSQUID will not be available to borrow

Borrowable Tokens

ETH max LTV: 75% Reserve Factor: 10% (as recommended by Rari,) Admin Fee: 0% (as recommended by Rari) Interest Rate Model: JumpRate (as recommended, and what most use)

DOLA (Have a preliminary understanding with the Inverse Finance team to seed the Pool) max LTV: 85% Reserve Factor: 10% (as recommended by Rari,) Admin Fee: 0% (as recommended by Rari) Interest Rate Model: JumpRate (as recommended, and what most use)

Costs Plus deploying each of the contracts will cost ETH; each deployment as of this writing (gas is averaging @ 100 gwei) will cost approx 0.02241484 ETH ($85). We propose that SquidDAO Treasury pay all program/funding costs.

This vote needs 33% participation to reach quorum (91 nfts)

For: Approve the creation of a Fuse Pool with the above assets and parameters and deploy the pool.

Against: Do nothing