Lighthouse Defi: New Beginnings

Lighthouse Defi
3 min readOct 20, 2021

Developer Update #1

What Has The Team Been Up To?

Following a successful rebrand to Lighthouse Defi, we’ve been developing an all-inclusive suite of Defi products for the Terra Ecosystem and beyond.

Vision/Mission

Lighthouse Defi’s mission is to provide a diverse, seamless, and accessible platform for users to empower themselves and their funds. We aim to attract users from all backgrounds in an uncomplicated fashion through diverse suites, including analytics, automation, and multi-faceted dApp integrations.

Lighthouse Defi’s First Suite: Liquidations Module

The team’s first focus is providing interactions with Anchor’s untapped Liquidations Market. We are currently prototyping a streamlined UI for visualizing Anchor’s new Liquidations Queue in the coming weeks. We have also developed and completed an efficient automated architecture that removes the ever-present stress of micromanaging one’s funds, the Smart Automated Platform (SAP). With a focus on accessibility, our platform is flexible with integrations outside of the Terra Ecosystem.

New Liquidations Queue?

Anchor has been testing a new liquidations contract where bids will be segregated into queues so that liquidations will be more distributed evenly. See the Diagram below:

Current Liquidations Scheme for Anchor Protocol
  1. Lender deposits UST into Anchor Earn.
  2. Borrower deposits bAssets, but during a downturn, LTV → >60%.
  3. First liquidator to provide requisite UST to reduce LTV of Borrower below 60% “wins.” They are granted the Borrower’s bAssets at a discounted rate (premium) of their choosing.
  4. Lender is insured their UST deposit upon withdrawal via Liquidator’s provided UST.
Simplified View of the New Liquidations Queue
  1. Lender deposits UST into Anchor Earn
  2. Borrower deposits bAssets, but during a downturn, LTV → >60%.
  3. Liquidators place deposits into bidding “pools” organized by the lowest premium/discount rate first — priority’s granted to lower premium/bid pools where each fills on a queue basis. As a result, each ‘filled’ order receives Borrower’s collateral at the pool’s requested discount rate.
  4. Within a timeframe, these bids are then “activated” to fill/ensure the lender and the Liquidators that get “filled” win these respective collaterals at their desired discount rate.
  5. Lender is insured their UST deposit upon withdrawal via Liquidator’s provided UST.

Testnet Address: terra18j0wd0f62afcugw2rx5y8e6j5qjxd7d6qsc87r

Github

Development Updates

We have begun to work on Smart Contracts focused on high-fidelity integrations with other Defi Protocols that work in conjunction with our SAP.

As a result, Lighthouse Defi will be more than just a dashboard/UI, but an all-in-one place where users won’t have to stress about jumping between websites, tabs, and clutter.

How Will The Team Raise Funds?

The Lighthouse Defi team is composed of highly motivated and passionate blockchain users who have worked tirelessly (pro bono) to fulfill our goal of providing an accessible platform for all users, from the newbies to the veterans.

We will keep you updated with our fundraising methods in future updates. Stay Tuned!

Tell Us About The Other Suites?

We will roll out weekly updates and slowly roll out our other suites culminating with our release of our Litepaper that details what Lighthouse Defi will encompass.

Weekly Updates?

We plan to release weekly docket updates on Medium and announce via our Twitter.

Are You Hiring?

We are open to resumes from motivated, passionate, and creative individuals with experience in blockchain development/engineering.

Contact us here: recruitment@lighthousedefi.com

Have a great day! We will see you next week!

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Lighthouse Defi

Our mission is to offer a straightforward and intuitive platform where users are incentivized to interact with Defi markets, no strings attached.