Add Collateral EIGEN to USDC Market on Mainnet

Introduction

Eigen Foundation proposes listing EIGEN tokens as collateral on USDC markets on Mainnet. This would allow users to leverage their EIGEN tokens, borrowing USDC to participate in other DeFi activities. This move is expected to drive borrowing activity and increase user engagement within the EigenLayer ecosystem.

Given the significant demand on EigenLayer, we anticipate that this addition will provide opportunities for Compound users to borrow against their EIGEN to unlock liquidity, or alternatively to borrow EIGEN against other collateral allowing them to stake it in the Eigenlayer ecosystem to earn rewards.

Type: Collateral deployment

Author: Eigen Foundation

Motivation

The EIGEN token is a universal intersubjective work token designed for EigenLayer, enabling security for various digital tasks that are not just objectively verifiable but also intersubjectively attributable. Unlike traditional work tokens that are tied to one specific digital task or objective faults (verifiable on-chain), EIGEN addresses a broader category of faults where multiple external observers agree on whether the task was performed correctly. This expands the range of tasks that can be securely managed on a blockchain.

EIGEN tokens are used for:

  • Staking for intersubjective faults on the EigenLayer platform.

  • Performing validation tasks across various Actively Validated Services (AVS).

  • Incentivizing and penalizing operators based on their performance.

By listing EIGEN as collateral, we aim to create new opportunities for Compound users to engage with this emerging staking ecosystem, while expanding EIGEN’s liquidity.

Important Links

Next Steps

We invite the community to give their feedback and recommendations for the asset.

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[I’m a voter a part of Blockchain at Berkeley but my views do not represent the views of the club]

EIGEN has a huge market cap and it only makes sense for Compound to include it. Due to volatility, would make sense to use more conservative parameters. Also given Aave DAO’s reluctance to include it, it is a competitive advantage for Compound to.

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