| id | Title | Status | Author | Description | Discussions to | Created |
|---|---|---|---|---|---|---|
| TIP-206 | ETH as supported native collateral | Draft | Cvija (@scvija) | Add ETH as a supported collateral for V2 | https://discord.gg/thales | 2024-05-21 |
Add ETH as a supported native collateral for Overtime v2
This TIP proposes the addition of ETH as a supported collateral for Overtime.
Overtime went live in July 2021, and since the inception, using stablecoins for trading has been the main idea and the preffered way. Even when the support for other collaterals like ETH, WETH, OP, ARB has been added, the trades were still denominated in sUSD/USDC, depending on the network. The buy-in was swapped atomically as a part of the transaction into sUSD/USDC, and the payout itself was to be claimed in stables also.
Trading directly with ETH was something the users have been asking for regularly, but only after the the switch to the new Overtime v2 architecture this is finally possible. Using ETH has a few benefits. It is completely uncensorable, which means that you funds cannot be frozen by any entity, nor can your address be blacklisted for trading it.
If you are a new user of Overtime, or a new crypto user in general, and want to place your first trade on Overtime, right now you need to have both a stablecoin and ETH for gas(unless you figure out that you can change the collateral). With this implementation, ETH would be all you need to start your trading journey on Overtime.
Talking about intangibles, ETH is THE native currency of the whole Ethereum network, all L2 and THE currency of DeFi in general, so supporting it natively seems only natural.
ETH will have its own dedicated collateral pool, independent from any stablecoin pools. There will be no swapping going on in the background, and the payout itself will also be settled in ETH. So if you have placed a trade for 1 ETH with a quote of 2, you payout will be exactly 2 ETH. Using ETH as collateral taps into another demographic of LPs that want to keep ETH exposure as well as being exposed to Sports AMM performance. Due to the movements of ETH price, the ETH pool has the potential to organically grow into the largest LP pool of the Thales ecosystem, enabling larger and larger dollar value positions to be opened as the price of ETH rises.
If you are an ETH maxi and think that the opportunity cost of swapping out of ETH is too high, you can place your trades and ETH can still appreaciate while it is locked and waiting for you to claim it after your win.
Create a new collateral pool for Overtime v2 this is using exclusively ETH. Both buy-ins and payouts will be settled in ETH.
**wETH will be actually used on the contracts, but users can use and claim in either
https://github.com/thales-markets/contracts-v2
Copyright and related rights waived via CC0.