Summary:
This proposal aims to set parameters for FRAX collateral on Polygon.
Rationale:
With the recent vote in favor of integrating FRAX as new collateral on Polygon, we need to set the different parameters of this collateral.
We propose :
- Liquidation Ratio: 110%
- Minimum Collateral Ratio: 110%
- Debt Limit: 500k PAR
- Liquidation Bonus: 3%
We have considered the FRAX risk’s assessment to chose these parameters
(You can find out the risk assessment details of this asset in the previous MIR discussion)
These parameters aim to be balanced for the users and the protocol, but they were also chosen in a low-risk way to be able to run experiment parameters on the pool without possible issues for the users and the protocol given the potential smart contract risks that may exist.
Note that these parameters are likely to be changed in the future according to the first data that we will collect.
Means:
- Human resources: If the proposal is accepted, this will need to add these new parameters to the FRAX vault’s smart contract
- Treasury resources: No treasury cost
Technical implementation:
- Add FRAX in the ConfigProvider Contract with all parameters decided by the Mimo governance.
- Set the chainlink oracle related to the FRAX: FRAX/USD into PriceFeed Contract
Voting options:
- Accept these new parameters
- Against these new parameters
- Abstain
Authors: @starny & @JeanBrasse from Mimo Labs
Community poll:
- Accept these new parameters
- Against these new parameters
- Abstain
0 voters
MIR-18.1┃Choose FRAX collateral parameters on Mimo on Ethereum is now live on Snapshot
Vote here 
With over 4,5M votes from vMIMO holders, MIR-18.1 was approved at 100%.