Collateral Debt Position

Lista DAO functions as a open-source CDP protocol where users can deposit a variety of Crypto assets (BNB, ETH, Stablecoins, and other cryptocurrencies) as collateral and borrow our decentralized stablecoin, lisUSD, against these assets. It uses and expands the proven MakerDAO model for a decentralized, unbiased, collateral-backed stablecoin.

Why Lista DAO?

Many stablecoin protocols have become too dependent on one model (entirely collateralized) or gone to another extreme (entirely algorithmic with no backing).

Collateralized stablecoins either carry custodial risk or require on-chain overcollateralization. These models provide a fairly tight peg with higher confidence than purely algorithmic designs.

Purely algorithmic designs such as Basis, Empty Set Dollar, and Seigniorage Shares provide a highly trustless and scalable model that captures the early Bitcoin vision of decentralized money but is lacking in terms of stability.

Unfortunately, the decentralized crypto-lending model we saw in the past decade did little to democratize financial services. Most blockchain-based lending protocols promise low fees, fast execution, and high returns, but they continue to suffer inefficiencies in design stemming from the “Stablecoin Trilemma”. This trilemma forces stablecoin developers to focus on mechanisms that can sacrifice either decentralization, price stability, or capital efficiency.

The intent behind Lista DAO is to propose a solution to the capital efficiency problem of overcollateralized stablecoins experience by allowing users to leverage their funds with a collateral debt position (CDP). Through a combination of Liquid Staking, the functionality of the MakerDAO model, and additional liquidity from LPs on DEXs, Lista will avoid issues such as frozen funds (fiat-backed) or held value lost (algorithmic) because of price instability.

Lista was built by experienced DeFi experts and smart contract developers to position the world-class revolutionary lisUSD destablecoin as the most widely used one, by leveraging Proof-of-Stake (PoS) rewards, Binance Liquid Staking, and yield-bearing assets.

The Lista DAO aims to help promote blockchain technologies into mainstream adoption by incentivizing borrowers and stakers to become a part of a new decentralized economy of scale.

Lista DAO allows users to:

• Collateralise BNB.

• Borrow lisUSD

• Farm lisUSD

• Repay the loan (lisUSD + borrowing interest)

• Withdraw collateral

• Claim rewards in LISTA for borrowing lisUSD