PIR-56.1┃Choose sUSDe collateral parameters for PAR on Ethereum

Integration Request (PIR) Approved PIRs
1

Summary:

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

Rationale:

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

We propose :

  • Debt Limit ($): 250,000
  • Liquidation Ratio (%): 108
  • Minimum Collateral Ratio (%): 110
  • Borrow Fee (%/y): decided by PAR onchain price as voted in MIP-25
  • Origination Fee (%): 0.20
  • Liquidation Bonus (%): 4
  • Liquidation Fee (%): 0

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

1115×437 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 sUSDe as collateral on Parallel.
  • Treasury resources: No treasury cost

Technical implementation:

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

  • In the PAR ConfigProvider contract call the ‘SetCollateralConfig’ function with these parameters:
    • ‘_collateralType’ : 0x9D39A5DE30e57443BfF2A8307A4256c8797A3497 (sUSDe)
    • ‘_debtLimit’: 250000000000000000000000 // 250k debt limit
    • ‘_liquidationRatio’ : 1080000000000000000 // 1.08 liquidation ratio
    • ‘_minCollateralRatio’ : 1100000000000000000 // 1.10 minimum collateral ratio
    • ‘_borrowRate’ : decided by PAR onchain price as voted in MIP-25
    • ‘_originationFee’ : 2000000000000000 // 0.2% origination fee
    • ‘_liquidationBonus’ : 4000000000000000 // 4% 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 17th at 4pm CET until March 22nd at 4pm CET: https://snapshot.box/#/s:mimo.eth/proposal/0xef21a26780f05920b84ce1e0248e1fc6ff381b4f041509428ee055354b74c2d3

3

The proposal has been approved by the DAO, results: https://snapshot.box/#/s:mimo.eth/proposal/0xef21a26780f05920b84ce1e0248e1fc6ff381b4f041509428ee055354b74c2d3