[PCP-6] Proposal to add SEAM & DEGEN on Seamless

Project and Asset Integrations
1

Summary

Proposal to add SEAM & DEGEN liquidity markets on Seamless.

References

Projects - https://www.coinbase.com/price/seam , https://www.degen.tips/

Github - https://github.com/seamless-protocol , https://github.com/degen-token

Smart contracts - SEAM, DEGEN

Oracles - SEAM/USD (Pyth), DEGEN/USD (not yet available)

Twitter - https://twitter.com/SeamlessFi , https://twitter.com/degentokenbase

Paragraph Summary

This is a proposal to add SEAM and DEGEN as two new liquidity markets on Seamless. To begin, the markets for both assets would be Supply only. For each market, the assets would not be able to be used as collateral nor able to be borrowed, until both of the following parameters are achieved: (1) onchain liquidity is sufficiently deep and stable, and (2) oracle feeds can support onchain pricing of assets. DEGEN fulfills (1), but has yet to fulfill (2). SEAM fulfills (2), but has yet to fulfill (1). This allows for a safe and step-wise approach to opening the markets.

Motivation

As the leading Base-native liquidity market, Seamless should consider expanding its shelf to include two of the premier Base-native assets: SEAM and DEGEN. As the governance token of Seamless Protocol, SEAM holders heavily overlap with Seamless users, which suggests high usage of this market. DEGEN, the popular tipping token of Farcaster users, has over 145,000 holders and liquidity of over $20m on Uniswap (Base). Seamless should consider adding these two assets to its shelf in order to support more Base-native projects and extend its usability within the Base ecosystem.

Specifications

  1. What is the link between the author of the AIP and the Asset?

Seamless Community Contributor

  1. Provide a brief high-level overview of the project and the token

SEAM: SEAM is the governance and voting power token of Seamless Protocol. Once delegated, SEAM can be used to initiate new proposals and vote on existing proposals about the protocol.

DEGEN: DEGEN is the rapidly growing tipping token used to power the Farcaster community. Recently, DEGEN has also expanded to be used as the native gas token of Degen Chain, an L3 built on Base.

  1. Explain positioning of the token in the Seamless ecosystem. Why would it be a good borrow or collateral asset?

Both SEAM and DEGEN are two of the top Base-native tokens, representing high overlap with the users of Seamless. The SEAM market would likely have high overlap with existing users of Seamless, while the DEGEN market poses an opportunity to leverage the large DEGEN user base to introduce new users to Seamless. As discussed above, neither asset will be able to be used as collateral or borrowable until both of the following parameters are achieved: (1) onchain liquidity is sufficiently deep and stable, and (2) oracle feeds can support onchain pricing of assets. Once both parameters are achieved for each asset, the large potential market from existing and new users makes both assets good candidates for being used as collateral and borrowing.

  1. How is the asset currently used?

Described above, SEAM is used as a governance token of Seamless Protocol, and DEGEN is used as a tipping token for Farcaster and gas token for Degen Chain.

  1. Market data (Market Cap/FDV, 24h Volume, Volatility, Exchanges, Maturity)

SEAM: FDV of $524m, $1m in volume, Exchanges: Coinbase, Gate, Kucoin, Uni v3, Aerodrome

DEGEN: FDV of $1.3b, $55m in volume, Exchanges: Bybit, Gate, Uni v3, Aerodrome

  1. Contracts date of deployments, number of transactions, number of holders for tokens

SEAM: Date of deployment (October 28, 2023), Number of transactions (160,231), Number of holders (4,611)

DEGEN: Date of deployment (January 7, 2024), Number of transactions (2,387,741), Number of holders (145,531)

5 Likes
2

This is a great proposal! We should definitely we supporting Base native assets as much as possible. I also like the suggestion of the step wise onboarding, by first opening a supply only market with collateral and borrowing disabled.

3

Excited to get SEAM listed on Seamless, an obvious choice. DEGEN being Base Native and consistently hyped is also promising. They have engrained themselves into the Farcaster community ecosystem, and am excited to see what a single sided supply market could unlock as functionality is potentially added overtime. Until there is an oracle available for DEGEN, agreed should just keep to single sided. Question for the community – will rewards be emitted to these new markets?

Thanks for the proposal!

4

I like the notion of having tokens which are on the rise on the platform for being to supply and eventually borrow - it is important to keep up with trends and growing tokens, and both SEAM and DEGEN are solid choices to add.

This also opens the avenue for further discussions for similarly positioned tokens, expanding the reach of the Seamless protocol and further broadening the range of potential use cases.

Fully support.

5

Great proposal! DEGEN’s has amazing support from the Base community.
Regarding oracle & rewards, it’d be great to clarify.

6

This is a great idea - especially for Seamless to try to extend its support to fellow Base native projects (like DEGEN). I think a area of focus or intent for Seamless can be around trying to grow the wider Base ecosystem as that will benefit all of the builders on Base, not just Seamless.

A question would be - if an oracle price for DEGEN is not available or for some SEAM or DEGEN cannot meet liquiidity thresholds for opening the market to collateral use, what should be done? (I presume another governance proposal then to delist the pool?)

Should there be a time window in which this decision needs to be made once these markets are live?

7

Fully support this proposal, it’s exciting to see Seamless embracing Base native assets and reaching out to big communities like DEGEN. There’s huge potential here for the Seamless Protocol to thrive.

8

I suppose that we should be very cautious of using our governance token in pools. However, since at this stage we are not talking about using it as collateral or able to be borrowed, I support this proposal. SEAM/DEGEN shall be a very promising case

9

Only makes the most sense to add Base-native assets on one of Base’s top Ledning protocols. This is a no-brainer in my opinion.

In favor of this proposal.