MIR-49.1┃Choose osETH collateral parameters for paUSD on Ethereum

Integration Request (MIR) Approved MIRs
1

Summary:

This proposal aims to set osETH parameters for paUSD collateral on Ethereum.

Rationale:

With the recent vote in favor of integrating osETH as new paUSD 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 (%): 8
  • Debt Limit ($): 100,000
  • Initiation Fee (%): 0.20
  • Borrow Fee (%/y): decided by paUSD onchain price as voted in MIP-25

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

1117×439 18.8 KB

(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 osETH as collateral on Parallel.
  • Treasury resources: No treasury cost

Technical implementation:

Add osETH in the paUSD ConfigProvider contract by calling the ‘SetCollateralConfig’ function with these parameters:

  • ‘_collateralType’ : 0xf1c9acdc66974dfb6decb12aa385b9cd01190e38 (osETH)
  • ‘_debtLimit’: 100000000000000000000000 // 100k debt limit
  • ‘_liquidationRatio’ : 1250000000000000000 // 1.25 liquidation ratio
  • ‘_minCollateralRatio’ : 1300000000000000000 // 1.30 minimum collateral ratio
  • ‘_borrowRate’ : decided by paUSD onchain price as voted in MIP-25
  • ‘_originationFee’ : 2000000000000000 // 0.2% origination fee
  • ‘_liquidationBonus’ : 75000000000000000 // 7,5% liquidation bonus
  • ‘_liquidationFee’ : 0 // 0% liquidation fee

Voting options:

  • Accept these new parameters
  • Against / Rework the Proposal
  • Abstain

Authors: @starny & @JeanBrasse from Mimo Labs

Community poll:

  • Accept these new parameters
  • Against / Rework the Proposal
  • Abstain
0 voters
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The proposal is now live on Snapshot: Snapshot

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

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