[Asset Onboarding Application] $PAI - Parrot
Author(s): @Vince Tags: asset-onboarding Asset Name: Parrot Asset Code: PAI Submission Date: 2022-05-15 Ratification Date: Status: Pending Forum URL: https://forum.jetprotocol.io/t/collateral-onboarding-application-pai-parrot/936
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
・Currently accepted as collateral on Solend and Port
Add support for PAI on Jet, enabling users to borrow and lend PAI.
・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
・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!