MIP-14.1 | paUSD launch, first tokens as collateral

Summary:

This proposal is introducing the first tokens as collateral that will back paUSD.

Context

Since the paUSD will be an over-collateralized stablecoin, it is obvious to assign collateral to it.

For simplicity and efficiency, we suggest using the same collateral as the PAR (Except xSUSHI, DAI and FRAX) and also wUSK. They have mostly proven their ability to be strong, decentralized and liquid. In addition, they have all been recently studied by the Mimo Labs team in order to establish the best collateral parameters to not put the protocol at risk.

Rationale:

Here is a summary of the different collaterals and their parameters :

|Collateral|Liquidation Ratio|Minimum Collateral Ratio|Debt Limit|Liquidation Bonus| | --- | --- | --- | --- | --- | |wUSK|102%|102%|500k paUSD|3%| |USDC|103%|103%|250k paUSD|3%| |wETH|125%|125%|500k paUSD|3%| |wBTC|125%|125%|500k paUSD|3%| |RAI|115%|120%|50k paUSD|3%| |LUSD|105%|108%|100k paUSD|3%| |CRV|135%|140%|25k paUSD|5%| |BAL|130%|135%|50k paUSD|5%| |AAVE|130%|135%|50k paUSD|5%| |LINK|130%|135%|50k paUSD|5%| |SUSHI|140%|145%|25k paUSD|5%| |wstETH|125%|130%|350k paUSD|6%| |cbETH|135%|140%|250k paUSD|5%|

Means:

• Human resources: If the proposal is accepted, DAO Multisig signers will have to sign transactions to execute the proposal.
• Treasury resources: There is no cost for the treasury.

Technical implementation:

To be described in MIP-14.2

Voting options:

• Accept first tokens as collateral for paUSD
• Against first tokens as collateral for paUSD / Rework the proposal
• Abstain

Authors: @starny & @JeanBrasse from Mimo Labs