Jose Maria Macedo, @ZeMariaMacedo - Delphi Labs

Larry0x, @larry0x - Delphi Labs

Sunny Aggarwal, @sunnya97 - Osmosis Labs

Host - Deebs DeFi @Deebs_DeFi (Orbital Command)

tl;dr

—community-hosted version of the Mars frontend: https://mars.osmosis.zone/redbank

—Prop to 3x deposit caps (currently full) is up in gov forum. Earliest it can go into effect is 9 days from now

—Mars credit will be enabled in the future by Mars governance

-First: leveraged yield farming (Fields of Mars)

-Then: credit accounts with cross-margining (Mars Rover NFTs)

-these will allow under-collateralized lending, i.e. credit

-with a single liquidation threshold

-credit is possible because borrowed assets are only able to be used in whitelisted strategies

-and can be liquidated according to protocol rules at any time

—no other other Red Bank Outposts planned for the immediate future, but anyone will be able to submit proposals and contracts for Mars governance to approve

Intro’s:

Sunny: Osmosis unlocked the first Defi primitive: AMM/DEX. Mars is unlocking the second: lending.

Jose: Mars has launched its outpost, credit coming soon.

Deebs: What is a Mars Red Bank Outpost? What’s the Mars restructure?

Jose: metaphor is a bank HQ vs its branches

Hub is HQ: handles admin, receives fees,

Outposts are on other chains, and banking occurs there.

Sunny: Osmosis outposts (an upcoming feature separate from Mars) are different.

—it’s a UX-level improvement where you can do swaps from, e.g. Juno, that route through Osmosis, but all the liquidity is still aggregated on Osmosis

-vs. Mars building up separate liquidity on each chain/outpost

-margin requires synchronous composability (or else risk frontrunning)

-plus, credit requires synchronous composability as well

—somewhat ironic: because asynchronous composability is sufficient for much of Defi

Synchronous Composability:

-say you have USDC on Ethereum, but you want to buy an NFT denominated in ETH

-you can make a single transaction that swaps to ETH and buys the NFT

-and you can set it up such that the entire transaction, including the swap, reverts if someone else gets the NFT first

—the strong claim is that this sort of composability is essential for Defi

-that’s like saying the entire internet needs to run on a single server

-but the internet is based on asynchronous composability

—and it still functions in a highly composable way

(the tooling to achieve this took a while)

—Cosmos is taking an asynch-first approach

-setting up the ability to, e.g., borrow on one chain, buy assets on a second chain, and use those assets to buy an NFT on Stargaze