Product Request: Add FISH as Collateral for Borrowing on Sovryn

Babelfish is one of the ecosystem products and currently under incubation by Sovryn

XUSD is Babelfish’s core product and DLLR forms a majority of its balance.

As current incentives through balancing curves aid to enable more stablecoin inflows into the system, I believe time is nigh to increase participation with the protocol as a whole.

Babelfish community is looking into ways to promote staking participation here: Exploring Rewards for FISH stakers

There currently is capital in FISH token ‘waiting to be unlocked’ i.e, by enabling liquid holders to find use for it. Current market cap for circulating FISH supply is $23 million

One of Sovryn’s goals is to encourage lending/borrowing with DLLR and Bitcoin

Adding FISH as collateral will enable current token holders to extract value from their holdings, and generate revenue for DLLR and Bitcoin lenders. Increased protocol revenue with benefit Sovryn stakers as well.

Even add it as collateral for XUSD loans.

I’m not a techie or part of the core team, so I don’t know the logistics that this would entail. However, I believe it would be a net positive for the ecosystem as a whole, as opposed to the current status quo, where the only incentive to hold FISH is capital gains.