Proposal: List UNI on Unichain

Proposals
1

Summary

This proposal, on behalf of the Uniswap Growth Program, recommends listing Uniswap’s UNI token as a supported asset on Venus Core Market for Unichain. Adding UNI will unlock borrowing demand for the token, establish it as a foundational yield source for Unichain lending within the Venus ecosystem, and enhance liquidity and user engagement.

About the Uniswap Growth Program

The Uniswap Growth Program is a DAO-endorsed initiative facilitated by AlphaGrowth, @PGov, and Arana Digital.

AlphaGrowth is a premier DeFi operations and growth firm. AlphaGrowth has a track record of managing upwards of $6M in incentive funds and has helped partners, like Compound, secure significant TVL. PGov and Arana Digital are a part of the Uniswap Accountability Committee and are responsible for overseeing and administering the DAO-led growth of Uni v3.

Motivation

With the recent launch of Unichain, there is a significant opportunity to be a first mover in establishing lending markets for UNI. By integrating UNI into the Venus Core Market early, Venus can position UNI as a key asset for borrowing and lending, driving liquidity growth and adoption within the ecosystem.

Supporting UNI, Venus can:

  • Enhance borrowing demand for UNI, increasing lending activity on the platform.

  • Drive liquidity and adoption for Venus within the Unichain ecosystem.

  • Strengthen UNI’s DeFi utility, creating new yield opportunities for holders.

Assets

Listing UNI on Venus Protocol would provide key benefits for both UNI holders and Venus users. As a widely recognized and highly liquid asset, UNI serves as an ideal candidate for lending and borrowing markets.

UNI:

Conclusion

This proposal outlines a strategic opportunity for Venus Protocol to embrace the growing Unichain ecosystem, enriching its lending and borrowing platform and providing UNI utility on Unichain. By supporting this proposal, Venus not only diversifies its asset offerings but also enhances its competitive edge on Unichain.

6 Likes
2

Nice to see that we are going to add more markets, I noticed that DEX liquidity for some assets is growing on daily basis, maybe we will see very soon more of them :sunglasses: :clap:

1 Like
3

Overview

Chaos Labs supports listing UNI on Venus Protocol’s Unichain Core Pool. Below is our analysis and recommendations for initial risk parameters.

Usage on Venus

UNI has been deemed to be acceptable for listing on Venus, both as a collateral asset and as a borrowable asset. UNI is the 11th largest market on BNB Chain by total supply, with more than $12.5M of the token deposited. In recent months, it has increasingly been used as collateral to borrow XRP; BNB debt has also become more popular.

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However, USDT has been the most consistent asset borrowed against UNI.

There is relatively little demand to borrow UNI, with BNB and USDT currently the most popular collateral assets.

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Liquidity

UNI currently has an on-chain supply of just 41.5K UNI on Unichain, representing a market cap of $394K.

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Currently, roughly half of this supply is held in the Uniswap V4 Pool Manager contract.

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However, because of its low on-chain supply and despite half of this supply being deposited on Uniswap, UNI’s on-chain liquidity is very low, with just three pools holding a TVL of over $1K. Additionally, the USDC/UNI pool is almost entirely skewed towards UNI, holding just 367 USDC. Thus, the WETH/UNI pool serves as the most vital liquidity on Unichain, holding just 23 WETH.

Collateral Factor

Given the extremely low liquidity, we recommend setting the asset as deposit-only for the time being. If liquidity improves, we will be able to recommend allowing the asset to be used as collateral.

Supply and Borrow Caps

We recommend setting the supply cap at 50% of its on-chain supply; we do not recommend allowing borrowing because of low liquidity. Using this methodology, we recommend an initial supply cap of 20,000 UNI.

Oracle Configuration/Pricing

We recommend using a RedStone oracle to price UNI.

Specification

Parameter Value
Asset UNI
Chain Unichain
Pool Core
Collateral Factor -
Liquidation Threshold -
Liquidation Incentive 10%
Supply Cap 20,000
Borrow Cap -
Kink 30%
Base 0
Multiplier 0.15
Jump Multiplier 3.0
Reserve Factor 25%
2 Likes
4

I find this proposal interesting as it incorporates the UNI token into Venus’ Core Pool on Unichain. I believe this initiative will open the doors for more liquidity to flow into the protocol, especially considering the significant growth Unichain has experienced. I look forward to seeing more assets being added to this new network.

5

I like how the markets are growing on Uniсhain, so the offer seems timely. I’m in :handshake:

6

I support this listing. It will deepen the protocol offering and increase the use case of the UNI token.

1 Like
7

Totally agree, Venus team please list UNI on unichain as soon as possible (like BSC)!

1 Like
8

Let’s do it! We nees UNI on Venus’ unichain

1 Like