# Add Market: USDP

Pax Dollar (USDP) is one of the most regulated stablecoin around being regulated by the New York State Department of Financial Services (“NYDFS”). This has the following benefits ([taken from here](https://www.paxos.com/a-regulated-stablecoin-means-having-a-regulator/)):
- The value of each stablecoin token is tied directly to the value of the US dollar, and the amount of “reserve” dollars equal or exceed the number of stablecoins outstanding.
- Regulators are overseeing the establishment and maintenance of reserves backing the stablecoins.
- Reserves may only be held in the safest forms, such as FDIC-insured bank accounts and in short-term maturity US Treasury instruments.
- Reserves are fully segregated from corporate assets, specifically for the benefit of token holders, and are held bankruptcy remote pursuant to the New York Banking Law.

This proposal serves to add a market for Pax Dollar (USDP) with the following parameters:
- Interest rate model: same as cDAI, cUSDT, and cTUSD (stablecoin standard)
- Collateral factor: 0% (standard to start)
- Reserve factor: 25% (standard)
- Borrow limit: none
- COMP rewards: none (for now, pending a broader discussion)

This proposal also updates the Uniswap-anchored ChainLink oracle with support for USDP (pegged to 1 USD).

References:
- [Etherscan - UAV price oracle](https://etherscan.io/address/0x046728da7cb8272284238bd3e47909823d63a58d)
- [Etherscan - cUSDP](https://etherscan.io/token/0x8e870d67f660d95d5be530380d0ec0bd388289e1)
- [Forums discussion](https://www.comp.xyz/t/new-listing-proposal-paxos-stablecoin-pax/1894/)
- [Proposal simulation](https://github.com/TylerEther/compound-protocol/blob/add-market-usdp/spec/sim/1000-add-market-usdp/hypothetical_proposal.sim)

Proposer disclaimers, affiliations, and transparency:
- USDP held over the past 90 days: none
- Compensation for this proposal: none
- Affiliation to USDP/Paxos: none