Summary:
This proposal aims to launch the paUSD on Polygon PoS.
Context
Following the MIP-14, which introduced the paUSD a decentralized and overcollateralized USD stablecoin and its deployment approval on Ethereum with MIP-14.1 et MIP-14.2 we propose to launch it on Polygon PoS.
Since the paUSD will be an over-collateralized stablecoin, it is obvious to assign collateral to it.
For simplicity and efficiency, we suggest using the same accepted collateral as the PAR. They have mostly proven their ability to be strong, decentralized and liquid. In addition, they have all been recently studied by the Mimo Labs team in order to establish the best collateral parameters to keep the protocol safe.
Rationale:
Here is a summary of the different proposed collaterals and their respective parameters :
| Collateral | Liquidation Ratio | Minimum Collateral Ratio | Debt Limit | Liquidation Bonus |
|---|---|---|---|---|
| USDC | 104% | 104% | 500k paUSD | 3% |
| wETH | 130% | 130% | 500k paUSD | 3% |
| wBTC | 130% | 130% | 500k paUSD | 3% |
| WMATIC | 145% | 150% | 500k paUSD | 5% |
| CRV | 130% | 135% | 100k paUSD | 5% |
| BAL | 130% | 135% | 100k paUSD | 5% |
| AAVE | 130% | 135% | 100k paUSD | 5% |
| LINK | 130% | 135% | 50k paUSD | 5% |
| SUSHI | 240% | 250% | 25k paUSD | 10% |
| DAI | 105% | 105% | 250k paUSD | 3% |
| stMATIC | 145% | 150% | 100k paUSD | 5% |
| MaticX | 145% | 150% | 100k paUSD | 5% |
| wstETH | 130% | 135% | 100k paUSD | 5% |
At launch, the paUSD token would not be seamlessly bridgeable between Ethereum and Polygon. It would be necessary to sell it on chain A for another token (e.g. USDC) and then bridge this token on chain B to buy paUSD on chain B. This could lead to situations where the paUSD price is different depending on the chain. However, please note that Mimo Labs is currently working on a secure bridge framework using Layer Zero where paUSD would be bridged seamlessly.
Means:
- Human resources: If the proposal is accepted, DAO Multisig signers will have to sign transactions to execute the proposal.
- Treasury resources: There is no cost for the treasury.
Technical implementation:
To be described in MIP-15.1
Voting options:
- Accept to launch paUSD on Polygon PoS
- Against to launch paUSD on Polygon PoS / Rework the proposal
- Abstain
Authors: @starny & @JeanBrasse from Mimo Labs
Community poll:
- Accept to launch paUSD on Polygon PoS
- Against to launch paUSD on Polygon PoS / Rework the proposal
- Abstain
MIP-15┃Launch paUSD on Polygon PoS is live on Snapshot !
Vote here 