Cast your vote on this Consensus Check here.
Summary
As promised on the June 2nd, June 30th, and August 25th Uniswap community calls, this is a proposal to provide a $UNI loan to Stable UNI ($oneUNI). Then users will deposit 10X more $UNI when minting $oneUNI, a token valued at $1.
The Uniswap community provided overwhelming positive support for ICHI’s Temperature Check Snapshot Proposal and forum discussion. A 998,788 $UNI loan was the token weighted average amount voted for by the Uniswap community.
Based on this support, we have created this Consensus Check to progress the Uniswap community in providing this loan.
I’d like to thank all of those who provided feedback in this process.
What?
$oneUNI is the 7th ICHI V2 stable asset, following stable assets created for Filecoin, 1INCH, 88MPH, and more. It enables the Uniswap community to govern and benefit from their own everyday currency.
Why?
$515M $USDC and $181M $USDT are locked within Uniswap V3.
You have to sell $UNI to mint these stablecoins.
You have to buy $UNI to mint $oneUNI.
More value will be retained within the Uniswap economy by increasing the amount of $UNI required to mint $oneUNI.
Use Cases
Users have minted 1.8M $oneUNI, adding $1M of $oneUNI-$USDC liquidity to Uniswap V3 in the first week. They can earn ICHI rewards by depositing $oneUNI at https://app.ichi.org/. ICHI has scheduled a 3X increase in this reward rate upon the receipt of the $UNI loan so that additional $UNI is paid to mint $oneUNI.
$UNI grant recipients who need USD exposure, such as the DeFi Alliance, are able to switch from other stable assets to $oneUNI. This enables them to also earn ICHI rewards and keep more value within the Uniswap community.
In addition, ICHI has three upcoming use cases for $oneUNI:
- Stable Arbitrage: 20% of each oneToken’s collateral is deposited to Uniswap V3 to provide $USDC-$oneToken liquidity. The USDC side of the pools will be converted to $oneUNI.
- ICHI Vaults: ICHI is in the audit process for novel Uniswap V3 liquidity mining vaults. $oneUNI will be a base asset for these vaults.
- ICHI Rebalancer: ICHI oneTokens must establish Member Token-USDC range orders on Uniswap V3 to rebalance their treasuries. $oneUNI will become a new base asset for these range orders.
Drawbacks
The Stable UNI treasury would either need to be topped up with $UNI or rebalance $UNI into $USDC if a severe $UNI price decline causes the treasury reserve ratio to drop beneath 150% (ICHI’s recommended minimum).
Mitigation: Yield on Stable UNI treasury assets, $oneUNI minting ratio adjustments, and $oneUNI redemption fees drive over-collateralization. These mitigations make it less likely that the reserve ratio drops beneath 150%.
Proposal
Deposit 998,788 $UNI to the $oneUNI community treasury as a loan to lower the minting ratio from 98% $USDC and 2% $UNI to $80% USDC and 20% UNI. This means users will begin depositing $0.20 of $UNI and $0.80 of $USDC to mint each $oneUNI.
Options
- Support Stable UNI
- Do Nothing
Cast your vote on this Consensus Check here.