[UNI-V2-ETH-USDT] - Dai Collateral Onboarding Application

Hello Maker community,

This is my proposal to add Uniswap USDT-WETH LP tokens as a collateral asset for Dai.

1) Who is the interested party for this collateral application?

Cole Kennelly (@ColeGotTweets)

2) Provide a brief high-level overview of the project, with a focus on the applying collateral token.

Built on Ethereum, Uniswap is a protocol for trading and automated liquidity provision. Uniswap is currently the #1 DeFi protocol by TVL (total value locked), with $2.15B locked at the time of writing. Anyone can become a liquidity provider for a pool by depositing an equivalent value of each underlying token (e.g. WBTC and WETH) in return for pool tokens. LP tokens track pro-rata LP shares of the total reserves, and can be redeemed for the underlying assets at any time.

USDT is a collateralized ERC-20 token that is pegged to the US Dollar. USDT is already supported as a collateral asset for Dai.

3) Provide a brief history of the project.

On November 2, 2018, Uniswap was deployed to the Ethereum mainnet. On May 18, 2020, Uniswap v2 was deployed to mainnet. On September 16, 2020, the Uniswap Protocol token (UNI) was announced.

4) Link any available audits of the project. Both procedural and smart contract focused audits.

Uniswap v2 Audit

5) Link to any active communities relating to your project.

Twitter

Blog

Discord

6) How is the applying collateral type currently used?

Uniswap WBTC-WETH LP tokens track pro-rata LP shares of Uniswap WBTC-WETH reserves.

7) Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?

No.

Thank you,
Cole Kennelly

2 Likes

Conceptually this sounds great. Operating without leverage makes Uniswap’s use of capital enormously inefficient.