Adding the INDY token as a payment option for interest owed on a CDP

With the release of V2, CDPs are now accruing interest. It is currently only possible to pay for your accrued interest using ADA.

I would like to propose adding the INDY token as a secondary payment option for accrued interest on CDPs.

This will give CDP holders more flexibility when making their interest payment as they would now be able to redirect a portion of their staking rewards (if they are staking with the SP) directly towards the interest payment. More flexibility for the user is always a good thing.

This will also provide the INDY token with some more utility, as it’s utility is really just voting (which nobody accumulates INDY to vote with) and staking rewards (which has become a hot topic within the Indigo community since the launch of V2).

This will also provide the Indigo Protocol with a stream of INDY.

It is never a bad idea for the Treasury to start accumulating more INDY…as INDY makes up majority of the rewards for SP staker’s (from a % perspective). This will give the protocol more INDY to disperse as rewards for SP stakers, which will extend the timer before all the INDY emissions are exhausted.

This proposal would double as providing more flexibility in the payment of accrued interest, and also providing a little bit more utility to the INDY token.

I think it’s a good idea, but my concern is whether we can guarantee tracking the price of the Indy token with a decent oracle service.

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