MIP-32 | Tokens Collateral Parameters update for paUSD on Ethereum

Improvement Protocol (MIP)
1

Summary:

This proposal aims to update tokens collateral parameters for paUSD on Ethereum.

Context:

In light of recent market developments over the past six months such as changes in token liquidity, increased volatility and rising global interest rates. We propose adjusting the collateral parameters for tokens allowed as collateral for paUSD on Ethereum.

This update aims to align the collateral parameters with the current risk environment and global market conditions.

Rationale:

Below are the current collateral parameters for token allowed as collateral for paUSD on Ethereum:

937×628 15.4 KB

(More details available here)

We propose to adjust collateral parameters as follows:

937×626 20.9 KB

(In blue the proposed changes, more details available here)

Means:

  • Human Resources: Multisig signers will need to sign and execute transactions to adjust tokens collateral parameters for paUSD on the Ethereum Multisig.

  • Treasury Resources: There is no cost for the treasury to adjust tokens collateral parameters for paUSD on Ethereum.

Technical Implementation:

Update Collateral parameters in the paUSD ConfigProvider contract by calling the ‘SetCollateralConfig’ function for each token where changes are needed with approved parameters with of these parameters:

  • ‘_collateralType’
  • ‘_debtLimit’
  • ‘_liquidationRatio’
  • ‘_minCollateralRatio’
  • ‘_originationFee’
  • ‘_liquidationBonus’
  • ‘_liquidationFee’
  • ‘_borrowRate’ : decided by paUSD onchain price as voted in MIP-25

Voting Options:

  • Accept the parameters update
  • Against / Rework the Proposal
  • Abstain

Author: @jeanbrasse & @Starny from Mimo Labs.

Community poll:

  • Accept the parameters update
  • Against / Rework the Proposal
  • Abstain
0 voters
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The proposal will be live tomorrow on Snapshot: Snapshot