Dear Paribus Community ,
We are excited to propose the listing of Pepe Coin as the first meme token collateral on Paribus. This initiative is designed to expand our platform’s offerings and serve a growing interest in meme tokens, particularly within the Arbitrum ecosystem.
Proposal Objective: Introduce Pepe Coin as the first meme token collateral on Paribus to expand market offerings and attract a new user base.
Background on Pepe Coin
Pepe Coin is a meme cryptocurrency inspired by the iconic “Pepe the Frog” character, which has gained immense popularity in internet culture over the years. Launched on April 19, 2023, Pepe Coin quickly garnered attention due to its rapid increase in market cap , trading volume and social media presence.
The widespread adoption and the robust community behind it make Pepe an intriguing asset for Crypto enthusiasts, particularly those interested in meme tokens.
Rationale for Listing Pepe Coin as Collateral
1. Expanding Market Offerings:
Listing Pepe Coin as collateral on Paribus will tap into the dynamic and growing meme token market.
The overall unique appeal of Pepe, positions it as a strong candidate for listing as collateral on Paribus.
Embracing the potential of meme tokens allows Paribus to diversify its market offerings and provide users with markets that reflect the evolving trends in the crypto space.
2. Attracting a New User Base:
Being the first lending platform on Arbitrum to list Pepe Coin as collateral would distinguish Paribus as a pioneer in meme token lending. This move is likely to attract a new demographic of users who are interested in meme tokens & their use cases within DeFi.
Global Data for Pepe Coin (CoinGecko)
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Market Cap: $3,400,000,000 ~
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Fully Diluted Valuation: $3,400,000,000~
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24-Hour Trading Volume: $900,000,000 ~
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Circulating Supply: 420,690,000,000,000
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Total Supply: 420,690,000,000,000
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Max Supply: 420,690,000,000,000
Pepe Coin on Arbitrum:
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Largest Liquidity Pool: Uniswap (PEPE/WETH)
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Total Liquidity on Uniswap: $318,000 ~
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Number of Holders: 11,000 ~
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Weekly Volume: $618,000~ (1,220~ txs)
Proposed Loan-to-Value (LTV) Ratios:
The proposal suggests implementing different LTV ratios for Pepe Coin collateral on Arbitrum and Ethereum, according to the liquidity and risk profile of each network.
On Arbitrum, where Pepe Coin’s liquidity pool is smaller, we recommend a conservative LTV ratio between 20% to 30%.This approach balances risk and ensures stability for both depositors and borrowers.
On the Ethereum network, where the liquidity pool for Pepe Coin is significantly larger, a higher LTV ratio of 50% to 60% is proposed, reflecting the reduced risk due to greater liquidity.
Loan-to-Value (LTV) Ratios summary:
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On Arbitrum: Proposed LTV ratio of 20% to 30% due to smaller liquidity pools and associated risk.
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On Ethereum: Proposed LTV ratio of 50% to 60%, supported by larger liquidity pools, offering a more secure borrowing environment.
Conclusion
Listing Pepe Coin as collateral on Paribus will embrace the unique opportunities presented by meme tokens offering exclusive market to the network & allowing users on to leverage Pepe’s established presence on Arbitrum.
It’s believed that this proposal can contribute to Paribus’ growth and strengthen its position as a leader in the borrowing & lending realm.
We invite the Paribus community to review this proposal and share their insights before moving to on-chain voting through governance.
Sincerely,
Paribus Team
the one I love