MIR-19.1┃Choose wstETH collateral parameters on Mimo on Ethereum

Summary: This proposal aims to set parameters for wstETH collateral on Ethereum.

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

We propose :

• Liquidation Ratio: 125%
• Minimum Collateral Ratio: 130%
• Debt Limit: 100k PAR
• Liquidation Bonus: 6%

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

(You can find out the risk assessment details of this asset in the previous MIR discussion) The risk assessment is considered on the principal asset: stETH

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.

Since it takes an additional transaction to unstake wstETH into stETH, the liquidation bonus is higher.

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 accepted, this will need to add these new parameters to the UNI vault’s smart contract
• Treasury resources: No treasury cost

Technical implementation: Add wstETH in the ConfigProvider Contract with all parameters decided by the Mimo governance. Set the chainlink oracle related to the wstETH into PriceFeed Contract → wstETH-ETH price feed | ETH-USD price feed

Voting options:

• Accept these new parameters
• Against these new parameters
• Abstain

Authors: @starny & @JeanBrasse from Mimo Labs