MIP-33 | Tokens Collateral Parameters update for paUSD on Polygon PoS

Summary:

This proposal aims to update tokens collateral parameters for paUSD on Polygon PoS.

Context:

In light of recent market developments over the past six months such as changes in token liquidity, increased volatility and rising global interest rates. We propose adjusting the collateral parameters for tokens allowed as collateral for paUSD on Polygon PoS.

This update aims to align the collateral parameters with the current risk environment and global market conditions.

Rationale:

Below are the current collateral parameters for token allowed as collateral for paUSD on Polygon PoS:

(More details available here)

We propose to adjust collateral parameters as follows:

(In blue the proposed changes, more details available here)

We also propose to offboard SUSHI from paUSD Collateral on Polygon PoS due to a lack of liquidity (less than $20k). This could lead to a bad debt, which we do not wish to take on.

Means:

• Human Resources: Multisig signers will need to sign and execute transactions to adjust tokens collateral parameters for paUSD on the Polygon PoS Multisig.

• Treasury Resources: There is no cost for the treasury to adjust tokens collateral parameters for paUSD on Polygon PoS.

Technical Implementation:

Update Collateral parameters in the paUSD ConfigProvider contract by calling the 'SetCollateralConfig' function for each token where changes are needed with approved parameters with of these parameters:

• '_collateralType'
• ‘_debtLimit'
• ‘_liquidationRatio'
• ‘_minCollateralRatio'
• ‘_originationFee'
• ‘_liquidationBonus'
• ‘_liquidationFee'
• ‘_borrowRate' : decided by paUSD onchain price as voted in MIP-25

Voting Options:

• Accept the parameters update
• Against / Rework the Proposal
• Abstain

Author: @jeanbrasse & @Starny from Mimo Labs.