Support Dinero's apxETH on Venus Protocol Ethereum mainnet

Summary

This proposal seeks to introduce apxETH as a supported collateral asset on Venus Protocol on Ethereum mainnet. By working with Dinero to enable Ethereum’s highest yielding LST to be utilized as collateral we enhance Venus’s lending and borrowing ecosystem, provide further diversity and greater liquidity.

Background and Motivation

Dinero has established itself as a pioneering force in the decentralized finance (DeFi) sector, introducing an innovative two token LST model, making it easy for users to access Defi yields via pxETH or staking yields for apxETH.

Official Website: https://dinero.xyz/

Official dapp website: Dinero

Documentation: https://dinero.xyz/docs

Assets

Dinero’s LST runs a two token model. When you stake with Dinero 100% of the ETH staked is put into validators, validating the beacon chain and earning staking yield. This staking yield is distributed to apxETH holders.

Users can choose to access different, higher value yield via the Dinero marketplace (Dinero) using pxETH, a non-yield bearing version of their LST. This higher yield attracts more people towards pxETH yields and causes an outsized yield opportunity for apxETH holders.

Adding apxETH as a collateral asset will provide a high yielding LST as collateral for the Venus and Dinero communities.

Asset numbers on Ethereum:

Market Cap: $71M (at time of writing for both apxETH & pxETH)

APY: 7%

Liquidity: $27M (pxETH)

Considerations

apxETH has no direct liquidity on mainnet as Dinero’s two token design gives all of the defi utility and liquidity to pxETH. However, Venus can easily and quickly access pxETH’s liquidity by swapping apxETH for pxETH via smart contract with no slippage or fees for liquidations.

Here is a technical docs for this process: https://dinero.xyz/docs/auto-px-eth-sol

Specifications :

Contract address: 0x9ba021b0a9b958b5e75ce9f6dff97c7ee52cb3e6

Oracle & Price Feeds: 0x19219BC90F48DeE4d5cF202E09c438FAacFd8Bea

Conclusion

This proposal gives the opportunity for the Venus ecosystem to onboard the highest yielding LST on Ethereum as a collateral asset. This will enable users to take out loans at very attractive rates, as the yield generated from apxETH will counter-act a large percentage (if not all) of a users borrow APY.

We look forward to receiving feedback on this proposal and integrating into the Venus ecosystem.