Title: [NIP-28] Onboard UNI as a Collateral Asset on Notional V3
Author(s): Anthias.xyz Team
Submission Date: 30 October 2023
The following is a proposal to onboard UNI as a collateral currency option on Notional V3. The Anthias team thinks UNI would prove valuable for the Notional community as a collateral asset and thus would like the community to consider & discuss onboarding UNI as a collateral type.
- Token contract address (Arbiscan)
- Project Website
- Project Github
- Social media/community channels
- Protocol Analytics Dashboard (Dune)
- The asset is an ERC-20 token (link to Arbiscan);
- The asset has been traded for at least 3 months (link to Coingecko);
- A sufficiently robust Chainlink oracle (verified tier) for the asset exists (link to https://data.chain.link/);
- Yes (verified tier): UNI / USD | Chainlink
- At least two high-quality audits have been conducted (Link to audit results);
- Yes: Audited by Chainsecurity and ConsenSys:
- Uniswap - Permit2 Smart Contract Audit - Chainsecurity
- Uniswap audit | Consensys Diligence
- The token is held by more than 1,000 unique wallets (link to Arbiscan);
- Yes: Currently held by over 26,000 addresses: $4.19 | Uniswap (UNI) Token Tracker | Arbiscan
- The current float (circulating supply/max supply) is above 25% (link to Coingecko);
- Yes: UNI float is currently over 75%: https://www.coingecko.com/en/coins/uniswap
- The token has more than $2m of on-chain DEX TVL (Mainnet) or more than $500K of on-chain DEX liquidity on a Layer 2 chain where a Notional deployment exists (link to https://info.uniswap.org or Balancer);
- Yes: UNI currently has over $27M in TVL on Uniswap: Uniswap Interface
1. Provide a brief overview of the proposed asset and its underlying project.
- UNI is the governance token for the Uniswap decentralized exchange. UNI is used to govern the protocol.
2. How is the asset currently used (staking, collateral on other lending protocols, etc.)? Provide relevant activity KPIs.
- The UNI token has no built-in staking mechanism, so in order to earn yield on UNI, holders lend it. UNI is currently a collateral asset on Compound V3 mainnet deployment.
3. Detail why you believe the project should be added to Notional either as a collateral asset or as a tradable asset and the potential benefits of doing so. Explain why you think the demand for this asset is sufficient to list it on Notional.
- Uniswap is the largest and most popular DEX. Its governance token, UNI, meets the criteria to be onboarded as a collateral asset on Notional V3. UNI is still a nascent asset in the lending space, and with its high liquidity and low slippage, it could be a great asset to onboard to Notional V3 with a proper launch supply cap in place.
4. Provide information regarding the organization behind the project.
- The Uniswap protocol was developed by Hayden Adams and is maintained by the Uniswap Labs team based in New York City. Uniswap is the most popular decentralized exchange as ranked by TVL (Uniswap currently has a TVL of over $3B). The founder, Hayden Adams, is a known public figure, and the team has been backed by firms including Fred Ehrsam’s Paradigm.
5. Provide information regarding past hacks or major bugs and how the team addressed them.
- In July of 2022, Uniswap was subject to a phishing attack where a hacker tricked an LP into supplying liquidity into a false pool, but the Uniswap team has stated that this was not an exploit of the protocol. (Read more here.)
- In April of 2023, Uniswap was the subject of a sandwich attack that cost the protocol around $25M. (Read more here.)
6. Provide an overview of the token’s market data.
- Market Cap: $3,238,348,875
- 24H Volume: $161,207,445
- UNI Volatility (UNI price compared to ETH over past 12 months)
- UNI has a volatility of 4.16% over the past 90 days, according to CoinCodex.
- Chart via CoinCodex
4. UNI DEX Liquidity (DEX Guru)
- UNI has over $9M of DEX liquidity at the time of posting this proposal according to DEX Guru: DexGuru
5. UNI DEX Slippage
- UNI slippage for a 1M USDC swap is currently about 1.98%.
6. Provide an overview of the token emission schedule and major holders.
- According to Uniswap Tokenomics, the initial token launch date for UNI was 1 Sept 2020. The maximum supply of this token is capped at 1,000,000,000, with a linear emission rate since genesis. The supply of UNI is expected to be fully vested by Sept 2024. A perpetual inflation rate of 2% per year will start after 4 years once the initial capped supply is reached, ensuring continued participation and contribution to Uniswap at the expense of passive UNI holders.
The Anthias team would like to gauge sentiment and hear thoughts from the Notional community with regards to onboarding UNI as a collateral type to Notional V3. Please share thoughts/questions in the comments of this forum post, and feel free to reach out to 0xBroze (@0xBroze on Discord or @OxBroze on Telegram) with any questions.
Anthias is a risk management organization that also builds tools for easily monitoring liquidation risk for DeFi borrowing/lending markets. The Anthias team has shipped multiple grants for Euler, Aave, Compound, and more. We also recently posted the collateral asset onboarding proposals for cbETH, GMX, ARB, and RDNT on Notional V3.