PIR-54.1┃Choose UNI collateral parameters for PAR on Polygon PoS

Integration Request (PIR) Approved PIRs
1

Summary:

This proposal aims to set UNI parameters for PAR collateral on Polygon PoS.

Rationale:

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

We propose :

  • Debt Limit ($): 50,000
  • Liquidation Ratio (%): 150
  • Minimum Collateral Ratio (%): 160
  • Borrow Fee (%/y): decided by PAR onchain price as voted in MIP-25
  • Origination Fee (%): 0.20
  • Liquidation Bonus (%): 10
  • Liquidation Fee (%): 0

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

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

  • In the PAR ConfigProvider contract call the ‘SetCollateralConfig’ function with these parameters:
    • ‘_collateralType’ : 0xb33eaad8d922b1083446dc23f610c2567fb5180f (UNI)
    • ‘_debtLimit’: 50000000000000000000000 // 50k debt limit
    • ‘_liquidationRatio’ : 1500000000000000000 // 1.50 liquidation ratio
    • ‘_minCollateralRatio’ : 1600000000000000000 // 1.60 minimum collateral ratio
    • ‘_borrowRate’ : decided by PAR onchain price as voted in MIP-25
    • ‘_originationFee’ : 2000000000000000 // 0.2% origination fee
    • ‘_liquidationBonus’ : 100000000000000000 // 10% 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
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The proposal is now live on Snapshot from March 16th at 4pm CET until March 21st at 4pm CET: https://snapshot.box/#/s:mimo.eth/proposal/0xc5ca882b7ec4cb9ecb0162b758c3fbcc18893eacd345dc640b44e56efbb42e55

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The proposal has been approved by the DAO, results: https://snapshot.box/#/s:mimo.eth/proposal/0xc5ca882b7ec4cb9ecb0162b758c3fbcc18893eacd345dc640b44e56efbb42e55