# MIP-12┃Adjust Origination & Borrowing fee **URL:** \ **Category:** Approved PIPs\ **Created:** [February 10, 2023, 2:18pm UTC](https://gov.parallel.best/t/mip-12-adjust-origination-borrowing-fee/259 "2023-02-10T14:18:14Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![starny](https://dub1.discourse-cdn.com/flex005/user_avatar/gov.parallel.best/starny/32/32_2.png) [@starny](https://gov.parallel.best/u/starny)\ **Post date:** [February 10, 2023, 2:18pm UTC](https://gov.parallel.best/t/mip-12-adjust-origination-borrowing-fee/259/1 "2023-02-10T14:18:15Z")
**Summary:** This proposal aims to reduce the Initiation fee & borrowing fee on all chains for all collaterals to remain competitive. **Context** The Mimo Protocol is generating revenues by taking fees on minted PAR. These fees are called “Origination Fee” and “Borrowing Fee” : - 0,5% Origination fee _The “Origination Fee” is a fee taken at the moment of the mint of newly PAR tokens and is quoted as a percentage of the total newly minted PAR. The fee is automatically added to the borrower’s debt at the moment of the mint._ - 3% yearly borrowing fee _The “Borrowing Fee” is a fee taken on the amount of PAR minted on collateral and is automatically added to the borrower’s debt at each block._ **Rationale:** In comparison, here are the fees taken by the other CDP (Collateral Debt Position) protocols : - Liquity fee(s) : [https://docs.liquity.org/faq/general#does-liquity-charge-any-fees](https://docs.liquity.org/faq/general#does-liquity-charge-any-fees) All loans have 0% interest and there is a variable borrowing fee (determined algorithmically) with a minimum value of 0.5% under normal operation. The fee is at 0% only during[“Recovery Mode](https://docs.liquity.org/faq/recovery-mode)”. - Angle fee(s) : [https://docs.angle.money/angle-borrowing-module/vaults/fees](https://docs.angle.money/angle-borrowing-module/vaults/fees) Angle Core module has dynamic fees (mint fee, stability fee & repay fee) that can be changed by the DAO. Currently, vault there is 0.5% yearly as stability fee. - QiDAO fee(s) : [Revenue Streams - Mai Finance](https://docs.mai.finance/revenue-streams#1.-repayment-fees) All loans have 0% interest, meaning the value of the related debt does not change over time. A 0.5% repayment fee is charged when debt positions are repaid. - MakerDAO fee(s) : [Costs and fees for our products](https://kb.oasis.app/help/costs-and-fees-for-our-products) MakerDAO charges a borrowing fee (starting from 0.25% for stETH to 3% and more for some assets) as well as a stability fee (from 0.25% to 1.5% and more for some assets). The fees currently taken by the Mimo protocol reduce the arbitrage opportunity of the PAR, due to a higher opportunity cost than on other collateral debt protocols, resulting in reduced capital efficiency for the borrowers and making the protocol less competitive. That’s why this proposal aims to reduce the Initiation fee and borrowing fee on all chains and for collaterals: - Initiation fee: 0.3% → 0.2% - Borrowing fee: 3% → 0.3% **Means:** - Human resources: If the proposal is accepted, the DAO multisig will need to launch and execute several transactions to change fees on all collaterals and on all chains. - Treasury resources: There is no cost for the treasury to adjust the Mimo Protocol fees. **Technical implementation:** 1. Change origination fee from 0,3% to 0.2% for all collaterals on all chains 2. Change borrowing fee from 3% to 0.3% for all collaterals on all chains **Voting options:** - Accept to adjust fees - Against adjusting fees - Abstain / Rework the proposal Authors: [@starny](https://gov.parallel.best/u/starny) & [@JeanBrasse](https://gov.parallel.best/u/jeanbrasse) from Mimo Labs **Community poll:** _Poll ([view on site](https://gov.parallel.best/t/mip-12-adjust-origination-borrowing-fee/259/1))_ ---
**Author:** ![starny](https://dub1.discourse-cdn.com/flex005/user_avatar/gov.parallel.best/starny/32/32_2.png) [@starny](https://gov.parallel.best/u/starny)\ **Post date:** [February 17, 2023, 12:09pm UTC](https://gov.parallel.best/t/mip-12-adjust-origination-borrowing-fee/259/2 "2023-02-17T12:09:49Z")
**⚡ MIP-12┃Adjust Origination & Borrowing fee** is now live on @SnapshotLabs ! The vote started tomorrow February 18th at 10am CET and finishes on February 20th at 10am CET. 🗳 Vote here 👇 [https://snapshot.org/#/mimo.eth/proposal/0x0f78ca0c196927e4419a978b3461011f98516d91f50998f9a441b9aadd87532c](https://snapshot.org/#/mimo.eth/proposal/0x0f78ca0c196927e4419a978b3461011f98516d91f50998f9a441b9aadd87532c) ---
**Author:** ![starny](https://dub1.discourse-cdn.com/flex005/user_avatar/gov.parallel.best/starny/32/32_2.png) [@starny](https://gov.parallel.best/u/starny)\ **Post date:** [February 27, 2023, 7:44am UTC](https://gov.parallel.best/t/mip-12-adjust-origination-borrowing-fee/259/3 "2023-02-27T07:44:21Z")
✅ With over 5,8M votes from vMIMO holders, MIP-12 was approved at 100%. The Mimo DAO will adjust Origination & Borrowing fee on each chain. Result: [https://snapshot.org/#/mimo.eth/proposal/0x0f78ca0c196927e4419a978b3461011f98516d91f50998f9a441b9aadd87532c](https://snapshot.org/#/mimo.eth/proposal/0x0f78ca0c196927e4419a978b3461011f98516d91f50998f9a441b9aadd87532c)