PGP-34 l Launch Parallel Stablecoins Price Feeds using DIA

Governance Proposal (PGP) Approved PGPs
1

Summary:

This proposal aims to launch price feeds for USDp & sUSDp against USD using DIA, a decentralized & trustless 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 DIA.

  1. DIA

DIA is a decentralized and trustless oracle network. Its modular design, based on a rollup architecture, enables verifiable data sourcing and distribution across any blockchain (diadata.org). DIA is the twelfth biggest oracle infrastructure by Total Value Secured (TVS), per DeFiLlama.

DIA delivers a wide range of data, available both on-chain and through APIs (REST / GraphQL), including digital asset prices, tokenized real-world assets, staked tokens, verifiable randomness & proof of reserve.

DIA Architecture:

  • Lumina Stack: a next-gen oracle architecture, fully on-chain, built on Lasernet, an L2 rollup that executes critical operations transparently and verifiably.
  • Nexus Stack: the classic stack (live since 2020), providing price feeds, verifiable randomness (VRF), and fair value data.
  • Decentralized Sourcing: independent nodes collect data from 100+ sources (DEXs, CEXs, NFT marketplaces, etc.).
  • Data Transformation: handled by “Pods” and “Aggregators” on the Lasernet network, ensuring auditability and verification.
  • Cross-chain Delivery: via “Spectra”, data can be delivered to 50+ L1 and L2 blockchains.
  1. Parallel Price Feeds

We propose to launch 2 price feeds:

  • USDp/USD: A market price feed tracking the price of USDp against USD
  • USDp/USD: A fundamental price feed tracking the redemption 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

DIA has specific criteria that must be met in order to deploy a market price feed for USDp against USD:

  • $1M in liquidity in a pool on a supported DEX (see supported DEXs here)

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 & Chains

Once requirements are met, DIA 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 DIA in order to deploy price feeds on a chain, regardless of the amount of price feeds per chain.

Given current demand from business development, we propose to deploy price feeds on 6 chains, including:

  • Sonic: $5,000
  • Base: $5,000
  • HyperEVM: $5,000
  • Avalanche: $5,000
  • Tac: $5,000
  • Unichain: $5,000

This means that a $30,000 (6x$5,000) one time setup fee will need to be paid to deploy Parallel price feeds.

  • C. Maintenance

A $2,000/year maintenance fee is applied by DIA for each chain where price feeds are deployed, regardless of the amount of deployed price feed per chain. This would mean:

  • Sonic: $2,000/year
  • Base: $2,000/year
  • HyperEVM: $2,000/year
  • Avalanche: $2,000/year
  • Tac: $2,000/year
  • Unichain: $2,000/year

This will represent an annual cost of $12,000 to maintain price feeds on these chains. Maintenance fees will be paid every 3 months to DIA. 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.

  • 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 feed on 3 additional networks (eg. Katana, Plume, Ink, Unichain, etc.). The additional cost to deploy price feeds on a network will be $5,000 one time setup fee + $2,000 yearly fee per additional chain. (+ gas costs)

An agreement will be signed between Cooper Labs & DIA 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: $30,000 one time payment in USDC + $12,000 yearly payment in USDC + gas costs in USDC. Payments will be made to Cooper Labs, which will then make the payment to DIA, 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 30,000.00 USDC to 0x876C4D1Bd31af0d99191fC896F15a3A97D71aaB3 (Cooper Labs)
    • Transfer 3,000.00 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 DIA
  • Against / Rework the Proposal
  • Abstain

Author(s): Jean Brasse from Mimo Labs

Community poll:

  • For the Launch of Parallel Stablecoins Price Feeds using DIA
  • Against / Rework the Proposal
  • Abstain
0 voters
2 Likes
2

Hello Parallel community,

My name is Josh from DIA oracles. We have been in discussions with Jean and the Parallel team about providing price feeds for the Parallel V3 upgrade, and are excited about the opportunity to collaborate with the team and broader community on providing robust and trusted price feeds.

We are honoured to be recognized and selected up to this point to be given the opportunity to demonstrate why we are first in class since 2020 for providing modular, robust, and stable feeds for chains and dApps across the space. As security is paramount, its also worth to note that DIA has been providing price feeds since 2020, with no loss of funds, and we continue to strive for excellence in this regard.

Previously, DIA has worked in collaboration with Mimo Capital to provide the protocol with a fully transparent price oracle across multiple chains. This price oracle was used to calculate the price of Mimo’s governance token, as well as its Euro-pegged stablecoin PAR. DIA was the ideal choice due to our support for long-tail assets by employing our fully transparent, end-to-end approach to building price oracles, capable of delivering price references for any digital asset.

DIA continues to build on this modular architecture through supporting protocols with fundamental price feeds, as well as market price feeds. These fundamental price feeds are key to future growth and expansion within the DeFi landscape as risk curators often require them to launch on trusted pools using applications - such as Euler or Morpho. We are working closely with these curators, as well as applications to ensure compliance and stability as a trusted oracle service.

We appreciate the team and community again for giving us this opportunity to collaborate again with you, and looking forward to the results of the community vote.

If there are any questions or concerns at all, happy to address them at any time.

Thanks for your consideration,

Josh

4 Likes
3

I like the proposal but the Cooper Labs vendor lock should be carefully handled.

2 Likes
4

The proposal is now live on Snapshot from September 10th until September 17th. To vote: https://vote.parallel.best/#/proposal/0x3516fbd2c7979c8c01aea2dc8e98813204ff1b077fee31a5bfd5b5755dcd9dc8

1 Like
5

The proposal has been approved by the DAO. Results: https://vote.parallel.best/#/proposal/0x3516fbd2c7979c8c01aea2dc8e98813204ff1b077fee31a5bfd5b5755dcd9dc8

1 Like