# MIR-8┃Add DAI as collateral on Mimo on Polygon **URL:** \ **Category:** Approved PIRs\ **Created:** [November 4, 2022, 1:42pm UTC](https://gov.parallel.best/t/mir-8-add-dai-as-collateral-on-mimo-on-polygon/217 "2022-11-04T13:42:05Z")\ **Posts on this page:** 7\ **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:** [November 4, 2022, 1:42pm UTC](https://gov.parallel.best/t/mir-8-add-dai-as-collateral-on-mimo-on-polygon/217/1 "2022-11-04T13:42:05Z")
**Summary:** This proposal aims to add DAI as new collateral on Mimo on Polygon. **Rationale:** The Maker Protocol is one of the largest dapps on the Ethereum blockchain. It allows users to generate DAI by leveraging collateral assets approved by the Maker Governance. DAI is designed to minimize price volatility. It is a decentralized, unbiased and collateral-backed cryptocurrency that is soft-pegged to the US Dollar. Users generate DAI by depositing collateral assets into Maker Vaults within the Maker Protocol. Every DAI in circulation is directly backed by excess collateral, meaning that the value of the collateral is higher than the value of the DAI debt. To generate DAI, the Maker Protocol accepts as collateral any Ethereum-based asset that has been approved by MKR holders. MKR holders must also approve corresponding Risk Parameters for each accepted collateral. With a supply of almost $7 billion in circulation, DAI is one of the most widely used dollar stablecoins in DeFi. You can learn more about these mechanisms in their [documentation](https://docs.makerdao.com/)/ [whitepaper](https://makerdao.com/en/whitepaper/). Once the vote is accepted on Snapshot, we will determine the associated liquidation ratio, minimal collateral ratio, debt ceiling, liquidation bonus on a second MIR discussion. **Project Presentation:** Protocol name : Maker DAO Token requested : DAI Token contract address : [$1.00 | (PoS) Dai Stablecoin (DAI) Token Tracker | PolygonScan](https://polygonscan.com/token/0x8f3cf7ad23cd3cadbd9735aff958023239c6a063) Audit(s) links : [Audit Reports - Security](https://security.makerdao.com/audit-reports) Chain requested : Polygon Relation with the project : None Website: [MakerDAO | An Unbiased Global Financial System](https://makerdao.com/en/) Github: [Maker · GitHub](https://github.com/makerdao) Twitter : [https://twitter.com/fraxfinance](https://twitter.com/fraxfinance) Telegram: [Telegram: Contact @makerdaoOfficial](https://t.me/makerdaoOfficial) **Token metrics & Risk assessment:** ![](https://europe1.discourse-cdn.com/flex005/uploads/mimo1/original/1X/9669b4df7e4093a8a498436384b0d687f35b53f3.png) - Smart Contract risk: B+ All accepted collateral assets can be leveraged to generate DAI in the Maker Protocol through smart contracts called Maker Vaults. The smart contracts are known as Collateralized Debt Positions (CDPs) and the vaults are inherently non-custodial. DAI has generated more than 34M transactions on Polygon. - Counterparty risk: B+ Users interact with Vaults and the Maker Protocol directly, and each user has complete and independent control over their deposited collateral as long the value of that collateral doesn’t fall below the required minimum level (the Liquidation Ratio, discussed in detail below). There are currently 685k holders on Polygon. - Market Risk: B+ DAI has a $6,5B market cap. Furthermore the price is correlated to the USD and over-collateralized at 140%. For this reason, we consider the risks of DAI mitigated by his over-collateralized asset such as USDC, ETH, BTC, etc. which have the highest market capitalizations and trading volumes of the MRC-20 tokens. The liquidity available on Polygon is nearly $12,4M with approximately $3M of volume per day on Polygon. Collateralization of the DAI and its different collaterals: [https://daistats.com/](https://daistats.com/) - Chain Risk : A Polygon had 0 outages over the last 6 months. ([Polygon Blocks | PolygonScan](https://polygonscan.com/blocks)) - Liquidity Risk of PAR on Polygon: A- The [PAR-USDC UniV3 pool](https://info.uniswap.org/#/polygon/pools/0xfa22d298e3b0bc1752e5ef2849cec1149d596674) has 592K$ in concentrated liquidity, composed of 50% PAR and 50% USDC at the time of writing. The [2eur Curve pool](https://polygon.curve.fi/factory/285) has 848k$ in liquidity, composed of 41,7% PAR and 58,3% jEUR at the time of writing. The [4eur Curve pool](https://polygon.curve.fi/factory/37) has 382k$ in liquidity, composed of 16,7% PAR, 19,7% jEUR, 37,4% EURS and 26,1% EURT at the time of writing. The [MIMO-PAR Balancer pool](https://polygon.balancer.fi/#/pool/0x82d7f08026e21c7713cfad1071df7c8271b17eae0002000000000000000004b6) has 136k$ in liquidity, composed of 80% MIMO and 20% PAR. This provides the following price impact on the following trade sizes: 1000 USDC → PAR: 0.01% 10000 USDC → PAR: 0.08% 25000 USDC → PAR: 0.21% 50000 USDC → PAR: 0.41% - Overall Risk : B+ The Overall Risk is the average of the points mentioned above. - Community size : Twitter: 229,3k followers Telegram: 14,5k members **Technical implementation:** 1. Add DAI in the ConfigProvider Contract with all parameters decided by the Mimo governance. 2. Set the chainlink oracle related to the DAI: [DAI/USD](https://docs.chain.link/docs/ethereum-addresses/) into PriceFeed Contract **Voting options:** - Add DAI as new collateral on Mimo on Polygon - Against adding DAI as new collateral on Mimo on Polygon - 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-8-add-dai-as-collateral-on-mimo-on-polygon/217/1))_ ---
**Author:** ![george](https://avatars.discourse-cdn.com/v4/letter/g/71e660/32.png) [@george](https://gov.parallel.best/u/george)\ **Post date:** [November 4, 2022, 7:34pm UTC](https://gov.parallel.best/t/mir-8-add-dai-as-collateral-on-mimo-on-polygon/217/2 "2022-11-04T19:34:22Z")
Good to see new collatorals on the protocol, i would also like to see it on ethereum, why only Polygon? Thanks! ---
**Author:** ![Lomimo](https://avatars.discourse-cdn.com/v4/letter/l/da6949/32.png) [@Lomimo](https://gov.parallel.best/u/Lomimo)\ **Post date:** [November 5, 2022, 2:36pm UTC](https://gov.parallel.best/t/mir-8-add-dai-as-collateral-on-mimo-on-polygon/217/3 "2022-11-05T14:36:10Z")
Ah, good news, you finally offer the DAI. Even supported at 50% by the USDC, it is less than the 100% of the latter, it allows more diversification. 👍 ---
**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:** [November 6, 2022, 8:11pm UTC](https://gov.parallel.best/t/mir-8-add-dai-as-collateral-on-mimo-on-polygon/217/4 "2022-11-06T20:11:57Z")
Hey @george Thank you for your comment! I think I can tell you that many more assets are coming, for Ethereum as well. 🙂 ---
**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:** [November 6, 2022, 8:12pm UTC](https://gov.parallel.best/t/mir-8-add-dai-as-collateral-on-mimo-on-polygon/217/5 "2022-11-06T20:12:21Z")
Thanks for your comment @Lomimo, appreciate ---
**Author:** ![JeanBrasse](https://dub1.discourse-cdn.com/flex005/user_avatar/gov.parallel.best/jeanbrasse/32/28_2.png) [@JeanBrasse](https://gov.parallel.best/u/JeanBrasse)\ **Post date:** [November 9, 2022, 3:33pm UTC](https://gov.parallel.best/t/mir-8-add-dai-as-collateral-on-mimo-on-polygon/217/6 "2022-11-09T15:33:20Z")
MIR-8┃Add DAI as collateral on Mimo on Polygon is live on Snapshot. The vote started the 7th September morning at 10am CET and finish the 10th September CET. 🗳 Vote here: [https://snapshot.org/#/mimo.eth/proposal/0xd20a69321cb7bfd3af0f8f6348392b9c375debc2b8e73575e3c18423805d2272](https://snapshot.org/#/mimo.eth/proposal/0xd20a69321cb7bfd3af0f8f6348392b9c375debc2b8e73575e3c18423805d2272) ---
**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:** [November 10, 2022, 6:52pm UTC](https://gov.parallel.best/t/mir-8-add-dai-as-collateral-on-mimo-on-polygon/217/7 "2022-11-10T18:52:06Z")
With over 3,8M votes from vMIMO holders, MIR-8 was approved at 100%. The Mimo DAO will add DAI as collateral on Mimo on Polygon, another proposal will be published soon on the governance forum to define the parameters of the collateral. Result: [https://snapshot.org/#/mimo.eth/proposal/0xd20a69321cb7bfd3af0f8f6348392b9c375debc2b8e73575e3c18423805d2272](https://snapshot.org/#/mimo.eth/proposal/0xd20a69321cb7bfd3af0f8f6348392b9c375debc2b8e73575e3c18423805d2272)