PIR-53.1┃Choose UNI collateral parameters for paUSD on Ethereum

Integration Request (PIR) Approved PIRs
1

Summary:

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

Rationale:

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

We propose :

  • Debt Limit ($): 250,000
  • Liquidation Ratio (%): 125
  • Minimum Collateral Ratio (%): 130
  • Borrow Fee (%/y): decided by paUSD onchain price as voted in MIP-25
  • Origination Fee (%): 0.20
  • Liquidation Bonus (%): 6
  • Liquidation Fee (%): 0

We have considered the UNI risk’s assessment to choose these parameters

1114×436 14.2 KB

(You can find out the risk assessment details of this asset in the previous PIR 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 UNI as collateral on Parallel.
  • Treasury resources: No treasury cost

Technical implementation:

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

  • In the paUSD ConfigProvider contract call the ‘SetCollateralConfig’ function with these parameters:
    • ‘_collateralType’ : 0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984 (UNI)
    • ‘_debtLimit’: 250000000000000000000000 // 250k debt limit
    • ‘_liquidationRatio’ : 1250000000000000000 // 1.25 liquidation ratio
    • ‘_minCollateralRatio’ : 1300000000000000000 // 1.30 minimum collateral ratio
    • ‘_borrowRate’ : decided by PAR onchain price as voted in MIP-25
    • ‘_originationFee’ : 2000000000000000 // 0.2% origination fee
    • ‘_liquidationBonus’ : 6000000000000000 // 6% liquidation bonus
    • ‘_liquidationFee’ : 0 // 0% liquidation fee

Voting options:

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

Authors: @JeanBrasse from Mimo Labs

Community poll:

  • Accept these new parameters
  • Against / Rework the Proposal
  • Abstain
0 voters
2

The proposal is now live on Snapshot from March 6th at 12am CET until March 11th at 1am CET: https://snapshot.box/#/s:mimo.eth/proposal/0x9afbb39e02ad6f6fa19aac7f4fbbad6e0a989f6d78216eee4abbc3bc8be1416e

3

The proposal has been appproved by the DAO, results: https://snapshot.box/#/s:mimo.eth/proposal/0x9afbb39e02ad6f6fa19aac7f4fbbad6e0a989f6d78216eee4abbc3bc8be1416e