CVP Proposal: Shoebill Finance - A LST Collateralizable Leverage Lending Platform on Metis

Approved
1

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Introduction

Liquid Staking is one of the best ways to hold a token with yield. Users can earn yields while the protocol/foundation of the original token can provide users an incentive to hold on to the token for a while longer, giving it momentum to increase in value with less selling pressure.

However, the premise of this is that the liquid staking token should have a range of utility and value.
Shoebill Finance is the best fit to give additional utilities for the LSTs in Metis ecosystem, such as eMetis of ENKI.

Shoebill Finance is an LST Collateralizable Leverage Lending platform where users can maximize their yield on their LST or utilize it for other opportunities in the network ecosystem using borrowed assets via LST collateral with minimized risk of liquidation.

Website: https://shoebill.finance
Networks: WEMIX, Manta, Klaytn
Social Media

Key Features

  • LST collateral: On Shoebill Finance, only LST tokens can be a collateral except a exceptional case, and those collateral won’t be lent to the users to get rid of a risk of bad debt.
  • Borrowable original asset: After supplying LST, users can only borrow the original token which the LST is pegged to. Shoebill separated each markets to be paired only with LSTs and its pegged original token to minimize the risk of liquidation by market volatility.
  • Price oracle & Liquidation: Shoebill finance gets the price feed of the original tokens from verified oracles such as Pyth network, then calculates the price of LST from the exchange rate of the LST contract. Shoebill is tracking the price of LPs on DEXes just for reference, so the fluctuation of token price won’t induce liquidation to the users; only the accrueing borrow yield will.
  • Shoebill Token (SBL) Utility and Vesting Mechanism: Shoebill token will have various utilities and play a critical rol in our platform. Token holders can share platform profit as well as additional reward given as extra tokens. By just holding enough quantity of SBL, users can boost the token reward yield by supplying and borrowing LSTs and its original tokens on Shoebill. SBL holder will also receive reward share from the users who proceed ‘early-exit’ with penalty, while the half of the penalty is listed on auction to be sold with discounted SBL quantity. For the utilities, holders should stake their SBL through vesting, and the vesting mechanism will be aligned with long-term user engagement and ecosystem growth.

Value Proposition

Shoebill Finance will enlarge the utility of LSTs in Metis and give the holders various options to grasp expected opportunities on expanding Metis ecosystem, and all with minimized worries of liquidation.

Roadmap

- Q1 2023: Launch of V1 (Done) - Shoebill Finance V1 launched on Klaytn network
- Q3 2023: Upgrade to V2 and 1st Expansion (Done) - Shoebill Finance has been upgraded to V2, LST Collateralizable Leverage Lending Platform and expanded to WEMIX network
- Q4 2023: 2nd Expansion and Surge (Done) - Shoebill Finance has expanded to Manta Pacific network and surged to $70M TVL by participating New Paradigm campaign which is focused on utilizing LSTs, STONE and wUSDM
- Q1 2024: 3rd Expansion and Token Economy/Utility Launch - Shoebill Finance is working on its token economy with various utilities, and expecting expansion to Metis network as its 3rd expansion

Conclusion

Shoebill Finance is hoping to be a stepping-stone in the Metis ecosystem enhanced by Metis LST, as a DeFi maximize users’ capital efficiency.

Whitepaper and Audit

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