MIR-33┃Adjust paUSD Borrow Rates on Ethereum & Polygon PoS

Integration Request (MIR) Approved MIRs
1

Summary:
This proposal aims to adjust paUSD borrow rates on Ethereum & Polygon PoS.

Rationale:

Following MIP-19, MIP-20, MIP-21 & MIP-22, which raised minimum borrow rates to 1.80% per year in line with recent market conditions changes (FED rates increased, main CDP borrow rates increase), we propose to continue in this direction by increasing minimum borrow rates to 4.20% per year. This will help both adjusting demand/offer (paUSD peg) and increasing protocol revenues. Protocol revenues from paUSD borrow rates would grow from around $2.5k per year to $5.5k.

Below are the current borrow rates for tokens allowed as collateral for paUSD on Ethereum:

1222×638 62.1 KB

(More details available here)

We propose to adjust borrow rates for tokens allowed as collateral as follows:

1218×636 59.1 KB

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

Below are the current borrow rates for tokens allowed as collateral for paUSD on Polygon PoS:

1220×680 68.6 KB

(More details available here)

We propose to adjust borrow rates for tokens allowed as collateral as follows:

1220×682 66.3 KB

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

Means:

  • Human Resources: Multisig signers will need to adjust paUSD borrow rates on Ethereum & Polygon PoS Multisigs.
  • Treasury Resources: There is no cost for the treasury to adjust paUSD borrow rates on Ethereum & Polygon PoS.

Technical Implementation:

On Ethereum, Parallel DAO multisig will call following smart contracts:

  • paUSD ConfigProvider contract:
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48 (USDC)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2 (wETH)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x2260fac5e5542a773aa44fbcfedf7c193bc2c599 (wBTC)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0xD533a949740bb3306d119CC777fa900bA034cd52 (CRV)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0xba100000625a3754423978a60c9317c58a424e3d (BAL)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9 (AAVE)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x514910771af9ca656af840dff83e8264ecf986ca (LINK)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x6b3595068778dd592e39a122f4f5a5cf09c90fe2 (SUSHI)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x7f39c581f595b53c5cb19bd0b3f8da6c935e2ca0 (wstETH)
      • ‘_borrowRate’ : 1000000001395766281313196628 (4.50% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0xaf4ce7cd4f8891ecf1799878c3e9a35b8be57e09 (wUSK)
      • ‘_borrowRate’ : 1000000001395766281313196628 (4.50% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : not yet deployed (wFRK)
      • ‘_borrowRate’ : 1000000001395766281313196628 (4.50% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x03ab458634910AaD20eF5f1C8ee96F1D6ac54919 (RAI)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x5f98805A4E8be255a32880FDeC7F6728C6568bA0 (LUSD)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0xBe9895146f7AF43049ca1c1AE358B0541Ea49704 (cbETH)
      • ‘_borrowRate’ : 1000000001395766281313196628 (4.50% p.y)

On Polygon PoS, Parallel DAO multisig will call following smart contracts:

  • paUSD ConfigProvider contract:
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x2791Bca1f2de4661ED88A30C99A7a9449Aa84174 (USDC.e)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x7ceB23fD6bC0adD59E62ac25578270cFf1b9f619 (wETH)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x1BFD67037B42Cf73acF2047067bd4F2C47D9BfD6 (wBTC)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x172370d5Cd63279eFa6d502DAB29171933a610AF (CRV)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x9a71012B13CA4d3D0Cdc72A177DF3ef03b0E76A3 (BAL)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0xD6DF932A45C0f255f85145f286eA0b292B21C90B (AAVE)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x53E0bca35eC356BD5ddDFebbD1Fc0fD03FaBad39 (LINK)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x0b3F868E0BE5597D5DB7fEB59E1CADBb0fdDa50a (SUSHI)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x8f3Cf7ad23Cd3CaDbD9735AFf958023239c6A063 (DAI)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x03b54A6e9a984069379fae1a4fC4dBAE93B3bCCD (wstETH)
      • ‘_borrowRate’ : 1000000001395766281313196628 (4.50% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : not yet deployed (wUSK)
      • ‘_borrowRate’ : 1000000001395766281313196628 (4.50% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x01d1a890D40d890d59795aFCce22F5AdbB511A3a (wFRK)
      • ‘_borrowRate’ : 1000000001395766281313196628 (4.50% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x0d500B1d8E8eF31E21C99d1Db9A6444d3ADf1270 (wMATIC)
      • ‘_borrowRate’ : 1000000001304602465690389264 (4.20% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0x3A58a54C066FdC0f2D55FC9C89F0415C92eBf3C4 (stMATIC)
      • ‘_borrowRate’ : 1000000001395766281313196628 (4.50% p.y)
    • Call ‘SetCollateralBorrowRate’ function with these parameters:
      • ‘_collateralType’ : 0xfa68FB4628DFF1028CFEc22b4162FCcd0d45efb6 (MaticX)
      • ‘_borrowRate’ : 1000000001395766281313196628 (4.50% p.y)

Voting Options:

  • For the adjustment
  • Against the adjustment
  • Abstain

Author: @jeanbrasse & @Starny from Mimo Labs.

Community poll:

  • For the adjustment
  • Against the adjustment
  • Abstain
0 voters
2

Vote is live: Snapshot

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3

The proposal has been approved by the DAO, result: Snapshot

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