LUNC Listing On Mars Protocol (SIGNAL)

Mars Protocol was a early Terra project designed for lending but was unfortunately affected by the capitulation event within LUNC formerly known as LUNA. (Article Here.)
Mars has since then become more popular and widely used for various cryptocurrencies and is a viable and successful protocol for operations and collateralized DEFI loans.

The aim of this proposal is to approve community consensus for the L1 or L2 developers to add LUNC in their roadmap, for it to be listed within Mars Protcol’s Red Bank, and to speak with the developers of the Red Bank for additional information to procure a listing. This is mutually beneficial for both blockchains and especially so for LUNC because LUNC is deflationary so every time someone loans LUNC it decreases the supply through burns while also introducing interest rate models that create buy in incentivizations and/or acquisitions through swaps (Also deflationary).

The listing of LUNC on the Mars Protocol platform would offer an additional use case for LUNC holders and potentially attract more users to both the Mars and Terra Ecosystems. Additionally, it would provide LUNC holders with the opportunity to participate in DeFi lending and borrowing activities on Mars Protocol through the Red Bank.

Daily 95% Conditional Value-at-Risk (CVaR, 365-days):Based on these quantitative metrics, in the next section, we propose the LTV and other associated risk parameters. 18.59%

Maximum intraday drawdown (90-day) 45.42%

Median 24hr volume (365-day, logarithm): median 24hr volume over the last 365 days.

Median 24hr market capitalization (7-day average, 90-days):

Average high-low percent quoted spread (30-day): 5.57%

Amihud’s illiquidity measure (90-day): 24.22%

Initial Deposit Cap Request: 25,000,000,000 LUNC (25Billion)

Tokenomics Involved
The amount of LUNC tokens deposited within the Red Bank reduces the circulating supply by the deposit cap amount (which can be modified for higher deposits later). While LUNC tokens are deposited within the Red Bank, holders may accrue a passive interest yield in MARS tokens (variable APRS but typically around 20%-ish). When someone is interested in a DEFI loan and takes LUNC tokens from the Red Bank, they increase the total volume of trades involved on the chain (increasing burned LUNC tokens) and also must pay interest accrued on the loan in the form of LUNC (users may have to purchase more LUNC tokens to pay off interest on said loans, therefore increasing the price of the LUNC in question)

Project Needs: Commercially done external audit, Bug bounty Program (and very few lines of code for the Red Bank Module), and a few other negligible attributes.
(Listings must adhere to the MARS RISK FRAMEWORK.)

Ideally by principle if multiple chains/protcols agree to list LUNC as loanable assets (or just the Red Bank within Mars Protocol for this proposal), the circulating supply could potentially be cut down by tens of billions at a minimum and perhaps even greater with additional future deposit cap increases. By reducing the circulating supply it allows easier price movements upwards while also incentivizing holders of LUNC with other mediums of wealth accumulation. Increased volume may also reduce the total supply alongside the circulating supply as a cross symptom combo.

The developers may need to use a community spend proposal to hire an audit team to acquire a listing within the Red Bank and to assure LUNC meets the requirements for deposits and deposit cap increases.


  • Increased burns
  • Increased utility use cases
  • Increased choices for interest rate models for LUNC holders
  • Decreased Circulating Supply
  • Decreased Total Supply
  • Increased swaps for LUNC tokens due to being contractable within the Red Bank (Also increasing Burns)
  • Increased Liquidity
  • Reduced Negative Volatility
  • Long Term Positive Price movement
  • Increased Yield For Those Currently Staked With LUNC Validators On Chain due to deposits moving within the Red Bank to accrue interest rather than draining the Oracle Rewards Pool. (Due to the structure of how staking yield is payed)


Other Credit Protocols Also Exist Within The Cosmos such as KAVA and UMEE which may also be considered upon for future reference and deposit listings!

Additionally Please feel free to vote at this StrawPoll and show community intent towards this proposal. PRE-VOTE POLL HERE

If you support this proposal vote YES.
If you do not support this proposal vote NO.
If you do not care about this proposal vote ABSTAIN.
If you vehemently disagree with this proposal vote NO WITH VETO.

Please Also Feel Free To Comment Below Your Thoughts/Opinions.


ive always been bullish on mars integrating it into lunc might be the boost we need


For lunc to be on the Mars Protocol it must update the source code and achieve parity with the cosmos. In addition to opening the bridges with the other blockchains


Sounds good, parity is in the roadmap so that works well with my proposal as it can be in the roadmap afterwards. Thank you for sharing sir.


Interesting. Interoperability among Cosmos broader space might be just what LUNC is missing. Sounds very promising!


This seems good if we can regain trust with assets that were lost in the crash it definitely will help Lunc along the way so I love this. Just one question, can we raise the initial deposit cap to 50 Billion Lunc? Just a suggestion since we’re still in the trillions, it would be nice to get stuff like this going for more Lunc taken out of circulation.


As a signalling proposal, I see nothing wrong with this. Any No with veto against this would just be malicious.

The implementation in the other hand might be difficult. Either way, this is a big YES.


It’s a strong yes for me :+1:


I think this is the central point of your proposal.

This, as you have mentioned, needs to be taken up by an external auditor.

If any external auditor is ready to take this up (since this involves having technical knowledge about cryptocurrency), then this proposal can be worked on.

This will of course, require working with the L1 Team to get this done though I do not think that should be an issue considering they are doing everything apart from what they are supposed to do:

They told me clearly that IBC is NOT something in priority in their PARITY PLAN. I do not know what they understand when they hear the word “parity” (since the Station Wallet is literally called “Interstation Wallet” right now), so I am writing a post on what it means and how, without IBC, there is NO PARITY (whatever the hell they understand by that).

I have to add here that Frag did tell me that he is working on opening up IBC with Kujira (and this is the last communication I had with him on this) though I do not see any evidence of that on the main core repo on GitHub. He might be testing it locally right now. I do not know what is the status of that currently.

You can talk to them since I have tried earlier. Some people get through easily to them. At least I can’t.


Surely, a yes

Only issue is that CP does not have the liquidity required nor the funds for audits or bounty programs.


Surely it this prop is a success it will pay it back any lost costs on both sides


Surely, there’s no borrowing of work nor borrowing of 15 billion liquidity

Really like this idea. Expanding to the broader Cosmos ecosystem can never be a bad thing, and I’m behind anything that can help us lower supply. Big yes from me!


An external audit may not be very expensive but a bug bounty program could be in my opinion. I think the developers were thinking about a bug bounty program last I heard anyway. I’m sure there are plenty of external code auditors that would do the job with a decent community budget in mind.

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Frag has opened up IBC between LUNC and Kujira.

You can talk to him about Mars and how he can get this sorted. The audit will definitely have to be done but talk to him about the technicalities and what is required.


I think that the Red Bank itself is built as a extension to osmosis protocol in how it’s structured. So essentially one would first just deposit lunc into an osmosis account, then the LUNC would be there to deposit in the Red Bank extension and immediately start accruing interest. (At least that’s how it works with other blockchain’s to my knowledge) I’m don’t know if there’s actually anything going on contractually for IBCs except withdrawing yield rewards. I the native gas fee of osmo like 0.006 or 0.0006 osmo to receive the payment for Mars rewards. Osmosis can handle swaps between coins from there, so essentially if you want more LUNC instead of MARS you can swap for it if you’d like that instead of MARS tokens.

If you are referring to having subcontractor mechanism for the loaning process then I missed your point and need to be educated on the matter.

If I have misunderstood or need to be educated on something let me know.

On a side note.
I do think it would be stellar to be able to have terra wallet addresses hold cosmos tokens like MARS.


using columbus - 5 block and cosmos ?

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Thats funny proposal.
YES from me.


This is a total yes.


Absolutely based use case for this ded poopcoin

I’m in.