PIR-55┃Add UNI as paUSD collateral on Polygon PoS

Summary: This proposal aims to add UNI as new collateral for paUSD on Parallel on Polygon PoS.

Rationale: UNI is the governance token of the Uniswap protocol. Token holders can propose and vote on changes to the Uniswap protocol, including fee structures, protocol upgrades, and treasury management. While UNI is primarily a governance token, it may accrue additional utility based on governance decisions. However, it's important to note that UNI holders do not receive a share of protocol fees by default.

The Uniswap protocol is a peer-to-peer system designed for exchanging tokens (ERC-20) on EVM blockchains. The protocol is implemented as a set of persistent, non-upgradable smart contracts; designed to prioritize censorship resistance, security, self-custody, and to function without any trusted intermediaries. As of February 2025, $4.84B has been deposited into Uniswap.

You can learn more about these mechanisms in their documentation.

Adding UNI as collateral would allow token holders to unlock liquidity on their assets while bringing a more diversified range of available assets available as collateral for the paUSD on Polygon PoS, making the Parallel Protocol the only collateralized-debt protocol allowing UNI as collateral on Polygon PoS.

If the vote is accepted by the DAO, the associated liquidation ratio, minimal collateral ratio, debt ceiling, liquidation bonus would be determined on a second PIR discussion.

Project Presentation:

Protocol name: Uniswap Token requested: UNI Token contract address: 0xb33eaad8d922b1083446dc23f610c2567fb5180f Audit(s) links: https://github.com/Uniswap/v4-core/tree/main/docs/security/audits Chain requested: Polygon PoS Relation with the project: None. Website: https://app.uniswap.org/ Github: https://github.com/Uniswap Twitter: https://x.com/Uniswap Telegram: /

Token metrics & Risk assessment:

Smart Contract risk: A- The protocol has multiple audits by ABDK, Certora, Spearbit, OpenZeppelin and TrailOfBits. Deployed contracts are immutable and cannot be upgraded. UNI has generated more than 3.2M transactions on Polygon PoS.

Counterparty risk: B+ There are currently 59.6k UNI holders on Polygon PoS.

Market Risk: C- When analyzing the trading volumes and normalized volatility of UNI for listing, we look at data from the past 180 days. Over this timeframe, UNI’s average daily trading volume is $437.8k and a normalized volatility of 11.53.

Chain Risk : A Polygon PoS had 0 outages over the last 6 months. (https://polygonscan.com/chart/blocks)

Liquidity Risk of paUSDon Polygon PoS: B+ This provides the following price impact on the following trade sizes:

• 1000 USDC → paUSD: 0.77%
• 10000 USDC → paUSD: 1.01%
• 25000 USDC → paUSD: 1.41%
• 50000 USDC → paUSD: 2.06%

Overall Risk : B The Overall Risk is the average of the points mentioned above.

Oracle: The UNI/USD oracle used is from Chainlink.

Means:

• Human resources: Multisig DAO signers will need to sign and execute transactions to add UNI as paUSD collateral on Polygon PoS.
• Treasury resources: There is no cost for the treasury to add UNI on Polygon PoS.

Technical implementation: On Polygon PoS, the Parallel DAO multisig will call following smart contracts:

• In the paUSD PriceFeed contract call 'SetAssetOracle' function with these parameters:
  • '_asset' : 0xb33eaad8d922b1083446dc23f610c2567fb5180f (UNI)
  • ‘_oracle’ : 0xdf0Fb4e4F928d2dCB76f438575fDD8682386e13C (UNI/USD)

Voting options:

• Add UNI as paUSD collateral on Polygon PoS
• Against / Rework the Proposal
• Abstain

Authors: @JeanBrasse from Mimo Labs