Summary:
This proposal aims to launch price feeds for USDp & sUSDp against USD using RedStone, a modular blockchain oracle infrastructure.
Rationale:
One of the main use cases for USDp and sUSDp is their use in lending protocols (e.g., Morpho, Silo, Euler), both as lending and collateral assets. In order to have USDp & sUSDp on lending protocols, it is essential to be able to price them securely. To this end, we propose to build price feeds using RedStone.
- RedStone
RedStone is a modular oracle infrastructure designed for the needs of modern DeFi applications and institutions. It provides reliable, efficient, and cost-effective financial data across multiple blockchains (docs.redstone.finance). RedStone is the third biggest oracle infrastructure by Total Value Secured (TVS), per DeFiLlama.
- Modular & Multi-chain Oracle: RedStone separates data collection from data delivery, making integration easier and faster across both EVM and non-EVM networks. No need to deploy a new node for every chain.
- Extensive Data Coverage: Supports over 1,300 assets including cryptocurrencies, stocks, ETFs, commodities, and more.
- Efficient & Cost-Optimized: Data delivery is flexible (push, pull, hybrid models), optimized for low gas consumption.
- Enhanced Security: Uses multiple validation layers: anomaly detection, market depth analysis, and aggregation via consensus across independent operators. So far, zero pricing incidents reported.
- Immutable Storage & Verifiable History: Data is cryptographically signed, stored off-chain, and archived permanently on Arweave, ensuring traceability and integrity.
- Tailored Data Access Models:
- Pull Model: The application fetches data only when needed (gas-efficient).
- Push Model: Data is continuously updated on-chain (ideal for lending, trading, etc.).
- X Model: Adds extra protection against front-running.
- Hybrid Model (push + pull): Combines the best of both worlds, leveraging ERC-7412.
- Parallel Price Feeds
We propose to launch 2 price feeds using the push model:
- USDp/USD: A market price feed tracking the price of USDp against USD
- sUSDp/USD: A price feed tracking the ratio value of sUSDp against USDp (via sUSDp contract) multiplied by the market price of USDp against USD
Note: sUSDp/USD price feed will have a different price on each chain since sUSDp contract is specific to a chain.
- A. Requirements
RedStone has specific criteria that must be met in order to deploy a market price feed for USDp against USD:
- 3 x $1M in liquidity in DEX pools
- Each liquidity pool must be on a different DEX supported by RedStone, regardless of the chain.
There is no specific criteria required to deploy a fundamental price feed (i.e. sUSDp/USDp).
Cooper Labs & Mimo Labs, via the approved PGP-29 l Marketing & Growth Strategy Phase I will make sure to meet these requirements.
- B. Setup**
Once requirements are met, RedStone will start the development of price feeds, which will take a few weeks. A one-time $5,000 setup fee will need to be paid to RedStone in order to deploy a price feed, regardless of the amount of chain where it will be deployed.
This means that a $10,000 (2x$5,000) one time setup fee will need to be paid to deploy USDp/USD & sUSDp/USD.
- C. Chains & Maintenance
Given current demand from business development, we propose to deploy USDp/USD & sUSDp/USD on 4 chains. A $1,000/month maintenance is applied by RedStone for each price feed on each chain. This would mean:
- Sonic: $1,000/month + $1,000/month
- Base: $1,000/month + $1,000/month
- HyperEVM: $1,000/month + $1,000/month
- Avalanche: $1,000/month + $1,000/month
This will represent an annual cost of $96,000 to maintain price feeds on these chains. Maintenance fees will be paid every 3 months (quarterly) to RedStone. In addition, it will be necessary to pay gas fees in order to update price feeds automatically. Given the low price variations and negligible gas fees on the chains where price feeds will be deployed, the cost related to gas fees should be low for the DAO ($50-60 per network per month).
Although these costs are high, we are convinced that they are necessary to enable Parallel’s growth.
- D. Additional Networks & Agreement
In order to get flexibility in terms of growth opportunities we propose to allow Cooper Labs & Mimo Labs to jointly deploy USDp/USD & sUSDp/USD price feeds on 3 additional networks (eg. Katana, Plume, Ink, Unichain, etc.). The additional cost to deploy a price feed on each network will be $1,000 per month. (+ gas costs)
An agreement will be signed between Cooper Labs & RedStone if this proposal is approved. We propose to set this agreement for a 1 year period, renewable via a proposal.
Means:
- Human Resources: DAO multisigners will need to sign and execute transactions to execute the proposal.
- Treasury Resources: $10,000 one time payment in USDC + $96,000 yearly payment in USDC + gas costs in USDC. Payments will be made to Cooper Labs, which will then make the payment to RedStone, due to an agreement signed between the two parties. Gas Top Up will be made by Cooper Labs.
Technical implementation:
- On Ethereum, the DAO Multisig will:
- Transfer 10,000.00 USDC to 0x876C4D1Bd31af0d99191fC896F15a3A97D71aaB3 (Cooper Labs)
- Transfer 24,000.00 USDC to 0x876C4D1Bd31af0d99191fC896F15a3A97D71aaB3 (Cooper Labs) every 3 months
- Transfer required amount to cover gast costs in USDC to 0x876C4D1Bd31af0d99191fC896F15a3A97D71aaB3 (Cooper Labs) every months
Voting options:
- For the Launch of Parallel Stablecoins Price Feeds using RedStone
- Against / Rework the Proposal
- Abstain
Author(s): Jean Brasse from Mimo Labs
Community poll:
- For the Launch of Parallel Stablecoins Price Feeds using RedStone
- Against / Rework the Proposal
- Abstain