[Asset Onboarding Application] $PAI - Parrot

[Asset Onboarding Application] $PAI - Parrot

Author(s): @Vince
Tags: asset-onboarding
Asset Name: Parrot
Asset Code: PAI
Submission Date: 05-15-2022
Ratification Date: 
Status: Pending
Forum URL: https://forum.jetprotocol.io/t/collateral-onboarding-application-pai-parrot/936

Greetings!

The Parrot Protocol would like to apply for the addition of PAI support on Jet’s platform.

Parrot is a synthetic borrow/lend protocol on Solana. Users can deposit various types of collateral and mint overcollateralized synthetic assets. PAI is our dollar-pegged and most widely used synthetic asset.

Collateral Asset Profile:

・Collateral symbol: PAI
・Description: Parrot’s dollar-pegged synthetic stablecoin
・Circulating supply: 22.2M
・Price oracles: Pyth and Switchboard
・Age: PAI has been live on mainnet for over 10 months
・Stats: https://stats.parrot.fi/
・Currently accepted as collateral on Solend and Port

Proposal:

Add support for PAI on Jet, enabling users to borrow and lend PAI.

Use Cases:

・Lend PAI to earn yield
・Borrow PAI to use for yield farming
・Borrow against PAI to bypass trading fees that would be incurred if the PAI were instead traded for the asset being borrowed

Risks:

・Although Parrot is audited by Halborn and has not experienced any hacks for the duration of its existence, there is always the possibility of smart contract risk.
・PAI currently has over $10M in liquidity across various exchanges. If liquidity decreases, it may become insufficient for liquidations. Parrot attempts to counteract this through its leverage interest rates. See Introducing Leverage Interest Rate to Incentivize Parrot Stability Pool | by The Party Parrot | Medium
・If the Pyth or Switchboard price oracles fail to provide accurate prices, liquidations could be falsely triggered or not executed in time for orderly liquidations.

We believe PAI would be a valuable addition to Jet’s supported assets and would enable Jet to capture additional value through enabling the borrowing and lending of PAI.

Thank you for reading, and we look forward to hearing the feedback from the Jet community!

1 Like

Hello Vince!

Welome to the forum and thank you for submitting this proposal!

The collateral asset onboarding application has been recently updated and is available here. In order to expedite consideration of this collateral asset I would recommend using the above template.

Additionally this application is a good reference for the fidelity of information I hope we can received from proposals.

Thanks again for submitting! I look forward to considering this further.

Adam

1 Like

Hi @Vince, can we please get a lightening tour of the peg mechanism, with emphasis on the ways it can blow up, wrong-way / positive feedback risks, etc?

1 Like

Look forward to reviewing it further once the template has been used.

Hello @vince! This application is pending. We hope that you are still interested in onboarding $PAI as a collateral. Please take a look at our asset onboarding template and get back to us with the completed application. In the meantime, please reach out to us with any questions or comments you may have. Thank you!