# MIR-31.1┃Choose wFRK collateral parameters for paUSD on Parallel on Polygon

**URL:** <https://gov.parallel.best/t/mir-31-1-choose-wfrk-collateral-parameters-for-pausd-on-parallel-on-polygon/309>\
**Category:** Approved PIRs\
**Created:** [September 20, 2023, 1:11pm UTC](https://gov.parallel.best/t/mir-31-1-choose-wfrk-collateral-parameters-for-pausd-on-parallel-on-polygon/309 "2023-09-20T13:11:47Z")\
**Posts on this page:** 3\
**Page:** 1

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**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:** [September 20, 2023, 1:11pm UTC](https://gov.parallel.best/t/mir-31-1-choose-wfrk-collateral-parameters-for-pausd-on-parallel-on-polygon/309/1 "2023-09-20T13:11:47Z")

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**Summary:**

This proposal aims to set parameters for wFRK collateral for paUSD on Parallel on Polygon.

**Rationale:**

With the recent vote in favor of integrating wFRK as new collateral for paUSD on Polygon, the DAO needs to set the different parameters of this collateral.

We propose :

- Minimum Collateral Ratio (%): 105
- Liquidation Ratio (%): 105
- Liquidation Bonus (%): 3.0
- Debt Limit ($): 100,000
- Initiation Fee (%): 0.20
- Borrow Fee (%/y): 1.10

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

(You can find out the risk assessment details of this asset in the previous MIR 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 accepted, this will need to add these new parameters to the wFRK vault’s smart contract
- Treasury resources: No treasury cost

**Technical implementation:**

1. Add wFRK in the paUSD ConfigProvider Contract with all parameters decided by the Mimo governance.
2. Set the MimoLabs’s customized Oracle PriceFeed related to the wFRK Contract

**Voting options:**

- Accept these new parameters
- Against these new parameters
- Abstain

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/mir-31-1-choose-wfrk-collateral-parameters-for-pausd-on-parallel-on-polygon/309/1))_

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<div class="post-metadata">

**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:** [September 22, 2023, 9:45am UTC](https://gov.parallel.best/t/mir-31-1-choose-wfrk-collateral-parameters-for-pausd-on-parallel-on-polygon/309/2 "2023-09-22T09:45:17Z")

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The vote will be live on Snapshot today at 4PM CET : [Snapshot](https://snapshot.org/#/mimo.eth/proposal/0x20081bdf72a34824bdda74d2ab5b9c46e23fe468675cbf8283fca83ce65c4aff)

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<div class="post-metadata">

**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:** [September 25, 2023, 2:14pm UTC](https://gov.parallel.best/t/mir-31-1-choose-wfrk-collateral-parameters-for-pausd-on-parallel-on-polygon/309/3 "2023-09-25T14:14:37Z")

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The proposal has been accepted by the DAO  
Result: [Snapshot](https://snapshot.org/#/mimo.eth/proposal/0x20081bdf72a34824bdda74d2ab5b9c46e23fe468675cbf8283fca83ce65c4aff)