Loan

Individuals who hold LOAN tokens will be able to use them to vote for various decisions for the lending protocol on Metal X. In this way, the users of LOAN can use their LOAN tokens to steer the direction of the protocol, shape it to meet their needs, and exercise community control over this DeFi platform.

Who can submit a proposal?

In the LOAN community, the cost to publish a proposal is 1,500,000 LOAN.

Excluded accounts

The following accounts will not participate in voting:

• xprtreasury - The account of the XPR Network Foundation

• xprgrants - The account of the XPR Network Grants

• metal - The personal account of Metallicus CEO Marshall Hayner

• Other Metallicus company related accounts such as metalpayroll, metalfinance, metallicus, metallicusmm

The scope of proposals

The scope of proposals for the LOAN platform includes aspects related to the management and operation of the platform and protocol changes. Proposals that are in scope are listed below.

What is not in scope

Making substantial changes to the structural aspects of a smart contract typically necessitates the development of an entirely new version, requiring a fresh audit and related procedures. Therefore, it is important to note that smart contract changes are currently beyond the scope of our intended modifications.

Smart contract additions are also not in scope.

New Loan token listings

Proposals can be submitted to vote on whether to add new a new proposed token to the lending protocol on Metal X.

Any tokens being considered for inclusion will undergo a compliance and technical review conducted by Metallicus.

Metallicus reserves the right to decline to list a token based on considerations of legality, financial viability, and technical integration requirements.

As a general rule, tokens must already have decent volumes and other exchange listings, a live product, decentralization, and utility demonstrated, among other factors.

Emission rate staking rewards

Proposals can be submitted to vote on the emission rate for staking rewards on the platform. Currently, the protocol incentivizes Loan staking with 8B LOAN per year. Proposals could be made to increase or decrease the yearly staking reward allocation.

Rewards for coin borrowing/lending

Proposals can be submitted to determine the rewards for those who lend or borrow coins on the platform.

Currently, the rewards rate to borrow and lend for the following pools is set to 200M LOAN per year: XBTC, XETH, XUSDC, XDOGE.

Additionally, the rewards rate to lend for the following pools is set to 100M LOAN per year: XPR and XMT.

Proposals could be made to increase or decrease the yearly staking reward allocation.

Interest rate curves

Proposals can be submitted to determine the interest rate curve for borrowing tokens. The current interest rate curves are listed here.

Management of the Treasury

100% of the APY spread goes to the LOAN Treasury which can be monitored on the reserves page.

Proposals can be submitted to vote on how to allocate funds from the Treasury, which can be used for a variety of purposes such as marketing, community initiatives, grants to integrate the Loan protocol into other platforms.

Proposal guidelines

In general, it is advisable to limit proposals to a single item rather than presenting a comprehensive list of requests all at once. For instance, when submitting a token for listing consideration, it is recommended to focus on a single token instead of providing a multitude of options. By adhering to this approach, the proposal can maintain clarity and effectiveness.

Please note that proposals that do not adhere to the provided guidelines may be declined. In the event of a proposal being declined, the listing fee will be refunded.

If you have any further questions before submitting your proposal, feel free to join the Loan Telegram channel. Community admins will be available to assist you and provide the necessary clarifications. Listing a token for consideration guideline:

When proposing a token for listing consideration, it is important to include the following information:

1. Include the ticket and name of the asset in the title of the proposal

2. Token Name: Clearly state the name of the token you are proposing for listing.

3. Token Symbol: Provide the ticker symbol or abbreviation used to represent the token.

4. Proposed Rewards: Specify whether the token should include LOAN rewards. If rewards are expected, mention that they will be generated through new inflation. If there are no rewards associated with the token, clearly state that. It's advised to limit this to 200M LOAN per token, this is the current rate for tokens that have rewards.

5. LTV (Loan-to-Value): Provide the Loan-to-Value ratio for the token. This ratio represents the maximum amount that can be borrowed against the token's value. Note: In the event of a token listing, Metallicus retains the right to modify the Loan-to-Value (LTV) ratio if deemed necessary to safeguard the platform's security.

Including these details will help provide a concise and focused proposal for listing consideration.

Token listing example Title: Add XPR Network (XPR) to the Loan Platform

Proposal: To add XPR Network (XPR) to the Loan Platform

Token name: XPR Network

Token Ticker: XPR

Proposed Rewards: 100M LOAN for lending, 100M LOAN for borrowing. These rewards will be generated through new inflation.

LTV: 40%

Voting strategy deployed for the LOAN community

To be eligible to vote, users must have a balance of LOAN tokens and/or SLOAN tokens that are staked. Each LOAN token and SLOAN token counts as one vote. For example: if you have 23.44 LOAN and 44.87 SLOAN, your total vote power would be 68.31 votes.

Quorum

Quorum voting sets a minimum threshold of voters required for a proposal to pass, such as a 60% quorum where 60% of voting power must vote. If the quorum is reached, the decision with the most votes wins. Proposals fail if the quorum threshold is not met.

In the LOAN community, the quorum is set to 25%.