# PIR-53.1┃Choose UNI collateral parameters for paUSD on Ethereum

**URL:** <https://gov.parallel.best/t/pir-53-1-choose-uni-collateral-parameters-for-pausd-on-ethereum/450>\
**Category:** Approved PIRs\
**Created:** [March 3, 2025, 3:28am UTC](https://gov.parallel.best/t/pir-53-1-choose-uni-collateral-parameters-for-pausd-on-ethereum/450 "2025-03-03T03:28:27Z")\
**Posts on this page:** 3\
**Page:** 1

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**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:** [March 3, 2025, 3:28am UTC](https://gov.parallel.best/t/pir-53-1-choose-uni-collateral-parameters-for-pausd-on-ethereum/450/1 "2025-03-03T03:28:27Z")

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**Summary:**

This proposal aims to set UNI parameters for paUSD collateral on Ethereum.

**Rationale:**

With the recent [vote](https://snapshot.box/#/s:mimo.eth/proposal/0x3c55c51c895f0f788952802511cca22656985be675f7b1985876eec40feae542) in favor of integrating UNI as new paUSD collateral on Ethereum, the DAO needs to set the different parameters of this collateral.

We propose :

- Debt Limit ($): 250,000
- Liquidation Ratio (%): 125
- Minimum Collateral Ratio (%): 130
- Borrow Fee (%/y): decided by paUSD onchain price as voted in [MIP-25](https://gov.parallel.best/t/mip-25-l-update-partial-automated-borrow-rates-adjustments/355)
- Origination Fee (%): 0.20
- Liquidation Bonus (%): 6
- Liquidation Fee (%): 0

We have considered the UNI risk’s assessment to choose these parameters

 ![](https://europe1.discourse-cdn.com/flex005/uploads/mimo1/original/1X/eff1002a02802ffae9cb413de04edd9f93a396b6.png)

(You can find out the risk assessment details of this asset in the previous [PIR discussion](https://gov.parallel.best/t/pir-53-add-uni-as-pausd-collateral-on-ethereum/442))

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 UNI as collateral on Parallel.
- Treasury resources: No treasury cost

**Technical implementation:**

On Ethereum, the Parallel DAO [multisig](https://etherscan.io/address/0x25Fc7ffa8f9da3582a36633d04804F0004706F9b) will call following smart contracts:

- In the paUSD ConfigProvider [contract](https://etherscan.io/address/0x3E0F4aC1Be8F494b7C1AC445192B9099700e5A27#code) call the ‘SetCollateralConfig’ function with these parameters:
  - ‘\_collateralType’ : [0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984](https://etherscan.io/address/0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984#code) (UNI)
  - ‘\_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’ : 60000000000000000 // 6% liquidation bonus
  - ‘\_liquidationFee’ : 0 // 0% liquidation fee

**Voting options:**

- Accept these new parameters
- Against / Rework the Proposal
- Abstain

Authors: [@JeanBrasse](https://gov.parallel.best/u/jeanbrasse) from Mimo Labs

_Community poll:_

_Poll ([view on site](https://gov.parallel.best/t/pir-53-1-choose-uni-collateral-parameters-for-pausd-on-ethereum/450/1))_

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**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:** [March 9, 2025, 12:26am UTC](https://gov.parallel.best/t/pir-53-1-choose-uni-collateral-parameters-for-pausd-on-ethereum/450/2 "2025-03-09T00:26:34Z")

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The proposal is now live on Snapshot from March 6th at 12am CET until March 11th at 1am CET: [https://snapshot.box/#/s:mimo.eth/proposal/0x9afbb39e02ad6f6fa19aac7f4fbbad6e0a989f6d78216eee4abbc3bc8be1416e](https://snapshot.box/#/s:mimo.eth/proposal/0x9afbb39e02ad6f6fa19aac7f4fbbad6e0a989f6d78216eee4abbc3bc8be1416e)

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**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:** [March 11, 2025, 3:31pm UTC](https://gov.parallel.best/t/pir-53-1-choose-uni-collateral-parameters-for-pausd-on-ethereum/450/3 "2025-03-11T15:31:39Z")

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The proposal has been appproved by the DAO, results: [https://snapshot.box/#/s:mimo.eth/proposal/0x9afbb39e02ad6f6fa19aac7f4fbbad6e0a989f6d78216eee4abbc3bc8be1416e](https://snapshot.box/#/s:mimo.eth/proposal/0x9afbb39e02ad6f6fa19aac7f4fbbad6e0a989f6d78216eee4abbc3bc8be1416e)