# MIR-50.1┃Choose ETHx collateral parameters for PAR on Ethereum

**URL:** <https://gov.parallel.best/t/mir-50-1-choose-ethx-collateral-parameters-for-par-on-ethereum/403>\
**Category:** Approved PIRs\
**Created:** [July 4, 2024, 12:05pm UTC](https://gov.parallel.best/t/mir-50-1-choose-ethx-collateral-parameters-for-par-on-ethereum/403 "2024-07-04T12:05:11Z")\
**Posts on this page:** 2\
**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:** [July 4, 2024, 12:05pm UTC](https://gov.parallel.best/t/mir-50-1-choose-ethx-collateral-parameters-for-par-on-ethereum/403/1 "2024-07-04T12:05:11Z")

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**Summary:**

This proposal aims to set ETHx parameters for PAR collateral on Ethereum.

**Rationale:**

With the recent [vote](https://snapshot.org/#/mimo.eth/proposal/0xfd41bbbb078e38d61ea657246e1133db3754c144a227eda4fb3f21254647f4cb) in favor of integrating ETHx as new PAR collateral on Ethereum, the DAO needs to set the different parameters of this collateral.

We propose :

- Minimum Collateral Ratio (%): 130
- Liquidation Ratio (%): 125
- Liquidation Bonus (%): 7
- Debt Limit ($): 250,000
- Initiation Fee (%): 0.20
- Borrow Fee (%/y): decided by PAR onchain price as voted in [MIP-25](https://gov.parallel.best/t/mip-25-l-update-partial-automated-borrow-rates-adjustments/355)

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

 ![](https://europe1.discourse-cdn.com/flex005/uploads/mimo1/original/1X/107700d05e0c83aded06590a1dd11386cabb7bb6.png)

(You can find out the risk assessment details of this asset in the previous [MIR discussion](https://gov.parallel.best/t/mir-50-add-ethx-as-par-collateral-on-ethereum/394))

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 approved, multisig DAO signers will need to sign and execute transactions to add ETHx as collateral on Parallel.
- Treasury resources: No treasury cost

**Technical implementation:**

Add ETHx in the PAR ConfigProvider[contract](https://etherscan.io/address/0xaa4cb7dbb37dba644e0c180291574ef4e6abb187#contracts) by calling the ‘SetCollateralConfig’ function with these parameters:

- ‘\_collateralType’ : [0xA35b1B31Ce002FBF2058D22F30f95D405200A15b](https://etherscan.io/token/0xA35b1B31Ce002FBF2058D22F30f95D405200A15b) (ETHx)
- ‘\_debtLimit’: 250000000000000000000000 // 250k debt limit
- ‘\_liquidationRatio’ : 1250000000000000000 // 1.25 liquidation ratio
- ‘\_minCollateralRatio’ : 1300000000000000000 // 1.30 minimum collateral ratio
- ‘\_borrowRate’ : decided by PAR onchain price as voted in [MIP-25](https://gov.parallel.best/t/mip-25-l-update-partial-automated-borrow-rates-adjustments/355)
- ‘\_originationFee’ : 2000000000000000 // 0.2% origination fee
- ‘\_liquidationBonus’ : 7000000000000000 // 7% liquidation bonus
- ‘\_liquidationFee’ : 0 // 0% liquidation fee

**Voting options:**

- Accept these new parameters
- Against / Rework the Proposal
- 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-50-1-choose-ethx-collateral-parameters-for-par-on-ethereum/403/1))_

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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:** [July 7, 2024, 12:45pm UTC](https://gov.parallel.best/t/mir-50-1-choose-ethx-collateral-parameters-for-par-on-ethereum/403/2 "2024-07-07T12:45:10Z")

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The proposal is live on Snapshot: [Snapshot](https://snapshot.org/#/mimo.eth/proposal/0x117db8d23160f7b9b74eeda0a4255166e6460600b5d80297b9ef723f6af0f3ac)