MIR-40.1┃Choose MKR collateral parameters for PAR on Ethereum

Integration Request (PIR) Approved PIRs
1

Summary:

This proposal aims to set MKR parameters for PAR collateral on Ethereum.

Rationale:

With the recent vote in favor of integrating MKR as new PAR collateral on Ethereum, the DAO needs to set the different parameters of this collateral.

We propose :

  • Minimum Collateral Ratio (%): 130
  • Liquidation Ratio (%): 125
  • Liquidation Bonus (%): 6
  • Debt Limit ($): 100,000
  • Initiation Fee (%): 0.20
  • Borrow Fee (%/y): 4.20

We have considered the MKR risk’s assessment to chose these parameters

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(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 approved, multisig DAO signers will need to sign and execute transactions to add MKR as collateral on Parallel.
  • Treasury resources: No treasury cost

Technical implementation:

  1. Set the chainlink oracle related to the MKR: MKR/USD into PriceFeed Contract
  2. Add MKR in the ConfigProvider Contract with all parameters decided by the Parallel governance.

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
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2

The proposal is live on : Snapshot

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Has been approved by the DAO, result: Snapshot

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