Let's maintain the same structure, shift the incentives, and offer a range of services that cater to everyone's needs. It's simple when put like that, but still requires a solid structure.
Apparently, Cat-in-a-Box possesses such an asset and proves it with its V1.1.
Introduction
I invite you to read the Alpha Report on V1 to understand the differences between the two versions and to have a comprehensive understanding of CIAB.
Firstly, understand that version 1 of CIAB is immutable, meaning there's no migration from V1 to V1.1. Therefore, you have the choice between V1 and V1.1 based on your different needs/strategies.
The Differences
V1 rewarded users who had an LTV lower than the average with an amplification of yield from the entire collateral of the system. In this new version, it's maintaining a higher-than-average LTV that's rewarded with increased yield.
Simply depositing stETH will no longer grant you yield.
However, as in V1, a higher-than-average LTV comes with the risk of part of your debt being resolved by a resolver. So, here as well, you'll need to juggle your LTV in relation to the average to benefit from the best yield while avoiding being resolved.
In this version, an additional 0.5% minting fee on your debt is introduced. It seems that boxFEE stakers are happy!
This new version of the protocol seems to have been well-received, as it currently boasts a higher TVL than the previous one!
What’s next?
While CIAB initially utilizes stETH as its underlying asset, it's just the beginning. Expect to see more collateral options in the future, starting with Rocket Pool's $rETH.
It's also likely that the protocol will expand to Layer 2 solutions like ZKSync, Optimism, or even Arbitrum.
And More?
What could be even more interesting is that the team behind CIAB appears to bring together multiple players with the skills and determination necessary to build something significant.
Their ambition is to create a diverse and innovative ecosystem of solutions, DApps, and Web3 games, with a vision of immutability and minimal governance.
Their approach is as follows: "Build quickly and deploy rapidly."
CIAB is their first product and is already contributing to the ecosystem.
Other projects are already under construction, and for those of you who are curious: @defigaragedev.
Article posted @August 25, 2023
