Proposal to Launch LINK/USDC Market

Proposals
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Background

LINK is a decentralized oracle network. It aims to serve as a middleware between smart contracts on smart contracting platforms and external data sources, allowing smart contracts to securely access off-chain data feeds.

Chainlink is currently the highest-valued DeFi cryptoasset by market capitalization (CoinGecko) and is the consistently the leader by daily volumes. In addition, the cryptoasset has a consistently dedicated community (Link Marines) which could be tapped into via a potential listing.

Key metrics

I’m reusing some of the metrics that @mykha2 used as I think they present a strong case for LINK to the same extent that they do for DOT. As he pointed out, there’s a large drop-off in perp. swap volumes from BTC and ETH but LINK has comparable volumes to that of both LTC, BCH, XRP, and DOT.

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I don’t have easy access to historical data for Uniswap swap volumes on a per token basis but LINK is consistently one of the most traded tokens on Uniswap (when stablecoins and rebase coins are removed). Today it has traded more than all other DeFi blue chips with the exception of UNI. Listing the coin seems to straddle a nice balance between appealing to the traditional perp. swap users (the archetypical Binance trader) with the DeFi native.

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Key points

  • LINK is the most popular and most-traded DeFi cryptoasset with a sizeable community who may be keen on decentralized leveraged trading.
  • Historical data provides some evidence that listing LINK would be the most low-risk DeFi asset listing and given the success of YFI thus far, we should expect similar volumes for LINK.
  • Given LINK’s popularity w/ traditional perp. swap markets this listing seems like a nature fit and a balance between appealing to traditional perp. swap traders and the DeFi-native user.

Additional notes

  • Chainlink has support for LINK/USD pair.
  • Description for LINK has been taken from Messari.
3 Likes
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Really nicely done! I’m wondering if this is an indicator but I had a look at LINK-USD on dydx and the volumes actually seem a bit low there (~230K OI, and ~24.5K 24hr trading volume)

But the interesting point is that as a % the coins seem to not exist in exchanges a lot and it’s predominately traded in DeFi and there’s decent volume and a load of active addresses

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So maybe people do want it? Not sure but might be worth to try it out I think

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DYDX perp. swap volume for LINK is around 5% of that for BTC, to put it into context. I feel part of the issue is that DYDX is quite a poor platform for the long tail anyway, the lack of dedicated LINK/DeFi market makers probably is the reason for the volume lag. I imagine YFI would have the same issue.

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Yep that’s a fair point. I guess if we had the similar volume as YFI right now would be a decent outcome

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My gut feeling tells me LINK is very much like YFI with regards to trading behavior. The YFI pair seems to be a major success on PERP, so I would vote “yes” for LINK as well.

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I am fully on board with adding LINK. I am pretty sure it will be highly used like YFI.

1 Like