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Summary

This proposal implements comprehensive protocol optimizations including rate curve updates for unutilized assets, ETH interest rate adjustments, factory deployer permissions, wstUSR vault configurations, treasury management, LBTC oracle updates, USDe vault parameter optimizations, credit allocation for Fluid DEX Lite development, and Lite user refunds. These changes aim to enhance protocol efficiency, improve risk management, and support ongoing development initiatives.

Code Changes

Action 1: Clean up default rate curves on unutilized assets

Update rate curves for 15 unutilized assets (lBTC, rsETH, ezETH, wstUSR, eBTC, USD0, iUSD, fxUSD, RLP, XAUT, PAXG, USR, tBTC, csUSDL, deUSD):

• Utilization 0%: Rate 0%
• Utilization 50%: Rate 20%
• Utilization 80%: Rate 40%
• Utilization 100%: Rate 100%

Action 2: Update ETH interest rate curve

Modify ETH rate curve parameters:

• Kink1: 88% utilization
• Kink2: 93% utilization
• Rate at 0% utilization: 0%
• Rate at 88% utilization: 2.75%
• Rate at 93% utilization: 4%
• Rate at 100% utilization: 100%

Action 3: Set Team Multisig 2 as deployer on all factories

Grant deployer permissions to Team Multisig 2 on:

• Vault Factory
• Dex Factory
• Lending Factory
• Smart Lending Factory

Action 4: Set wstUSR launch limits and dust limits

Launch Limits for T1 Vaults:

• Vault ID 110
  wstUSR/USDC (TYPE 1):

  • Base Withdrawal Limit in USD: $8M
  • Base Borrow Limit in USD: $6M
  • Max Borrow Limit in USD: $20M
  • Authorization: Remove Team Multisig as vault auth

• Vault ID 111
  wstUSR/USDT (TYPE 1):

  • Base Withdrawal Limit in USD: $8M
  • Base Borrow Limit in USD: $6M
  • Max Borrow Limit in USD: $20M
  • Authorization: Remove Team Multisig as vault auth

• Vault ID 112
  wstUSR/GHO (TYPE 1):

  • Base Withdrawal Limit in USD: $8M
  • Base Borrow Limit in USD: $6M
  • Max Borrow Limit in USD: $20M
  • Authorization: Remove Team Multisig as vault auth

Dust Limits for wstUSR Vaults:

• Vault ID 142
  wstUSR/USDTb (TYPE 1):

  • Base Withdrawal Limit in USD: $7k
  • Base Borrow Limit in USD: $7k
  • Max Borrow Limit in USD: $9k
  • Authorization: Set Team Multisig as vault auth

• Vault ID 143
  wstUSR/USDC-USDT (TYPE 3):

  • Base Withdrawal Limit in USD: $7k
  • Authorization: Set Team Multisig as vault auth

• DEX Pool 2
  USDC-USDT:

  • Expand Percent: 30%
  • Expand Duration: 6 hours
  • Base Borrow Limit: 3500 shares ($7k)
  • Max Borrow Limit: 4500 shares ($9k)

• Vault ID 144
  wstUSR/USDC-USDT Concentrated (TYPE 3):

  • Base Withdrawal Limit in USD: $7k
  • Authorization: Set Team Multisig as vault auth

• DEX Pool 34
  USDC-USDT Concentrated:

  • Expand Percent: 30%
  • Expand Duration: 6 hours
  • Base Borrow Limit: 3500 shares ($7k)
  • Max Borrow Limit: 4500 shares ($9k)

Action 5: Withdraw additional $FLUID for Rewards

• Treasury:
  • Withdraw: 11,500 FLUID tokens to Team Multisig for rewards distribution

Action 6: Update LBTC oracle and center price

Update oracle addresses and center price configurations for:

• DEX Pool 17
  lBTC/cbBTC:

  • Center Price Address: Oracle 170
  • Update Parameters: 1e4, 2 days

• DEX Pool 30
  lBTC/WBTC:

  • Center Price Address: Oracle 171
  • Update Parameters: 1e4, 2 days

• Vault ID 114
  lBTC/cbBTC<>cbBTC:

  • Oracle: Oracle 173

• Vault ID 97
  lBTC/cbBTC<>wBTC:

  • Oracle: Oracle 174

• Vault ID 115
  WBTC/lBTC<>WBTC:

  • Oracle: Oracle 175

Action 7: Update USDe T1 vaults parameters

Configure USDe vaults with optimized parameters:

• Vault ID 66
  USDe/USDC (TYPE 1):

  • Base Withdrawal Limit in USD: $8M
  • Base Borrow Limit in USD: $8M
  • Max Borrow Limit in USD: $50M
  • Liquidation Max Limit: 96%
  • Liquidation Threshold: 95%
  • Collateral Factor: 94%
  • Liquidation Penalty: 0.5%

• Vault ID 67
  USDe/USDT (TYPE 1):

  • Base Withdrawal Limit in USD: $8M
  • Base Borrow Limit in USD: $8M
  • Max Borrow Limit in USD: $50M
  • Liquidation Max Limit: 96%
  • Liquidation Threshold: 95%
  • Collateral Factor: 94%
  • Liquidation Penalty: 0.5%

• Vault ID 68
  USDe/GHO (TYPE 1):

  • Base Withdrawal Limit in USD: $8M
  • Base Borrow Limit in USD: $8M
  • Max Borrow Limit in USD: $20M
  • Liquidation Max Limit: 96%
  • Liquidation Threshold: 95%
  • Collateral Factor: 94%
  • Liquidation Penalty: 0.5%

Action 8: Provide Credit to Team Multisig for Fluid DEX Lite

Allocate credit lines to Team Multisig:

• USDC Credit Configuration:

  • User: Team Multisig
  • Token: USDC
  • Mode: 1
  • Expand Percent: 1%
  • Expand Duration: 16777215 (max time)
  • Base Debt Ceiling: $2.5M
  • Max Debt Ceiling: $2.5M

• USDT Credit Configuration:

  • User: Team Multisig
  • Token: USDT
  • Mode: 1
  • Expand Percent: 1%
  • Expand Duration: 16777215 (max time)
  • Base Debt Ceiling: $2.5M
  • Max Debt Ceiling: $2.5M

Action 9: Refunding Lite Users

Execute Lite user refund process through Treasury:

• Step 1: Withdraw 55 stETH from Lite vault and normal transfer back to Lite vault
• Purpose: Process refunds for Lite users through the Treasury’s DSA

Description

This proposal implements several key changes to optimize protocol parameters, enhance risk management, and improve operational efficiency. The changes include:

1. Rate Curve Optimizations

   • Update rate curves for 15 unutilized assets to standardize parameters and improve capital efficiency.
   • Adjust ETH rate curve parameters to align with current market conditions and utilization patterns.

2. Factory Deployer Permissions

   • Grant Team Multisig 2 deployer permissions on all factory contracts (Vault Factory, Dex Factory, Lending Factory, Smart Lending Factory) to enable streamlined development processes.

3. wstUSR Vault Configurations

   • Set launch limits for wstUSR T1 vaults (IDs 110, 111, 112) with $8M base withdrawal limits, $6M base borrow limits, and $20M max borrow limits.
   • Configure dust limits for specialized wstUSR vaults (IDs 142, 143, 144) with appropriate risk management parameters.
   • Remove Team Multisig authorization from launch vaults and set authorization for dust limit vaults.

4. Treasury Management

   • Withdraw 11,500 FLUID tokens from Treasury to Team Multisig for rewards distribution to support ongoing protocol incentives.

5. LBTC Oracle Updates

   • Update center price addresses and oracle configurations for lBTC-related DEXes (Pools 17, 30) and vaults (IDs 114, 97, 115) to ensure accurate pricing for Bitcoin-related assets.

6. USDe Vault Parameter Optimizations

   • Configure USDe T1 vaults (IDs 66, 67, 68) with optimized risk parameters including liquidation limits, thresholds, collateral factors, and penalties.
   • Set appropriate borrow limits ranging from $20M to $50M based on stablecoin pair risk profiles.

7. Credit Allocation for Development

   • Allocate $2.5M credit lines in both USDC and USDT to Team Multisig for Fluid DEX Lite development.
   • Configure credit parameters with 1% expansion rate and maximum duration to support long-term development initiatives.

8. Lite User Refunds

   • Execute refund process for Lite users by withdrawing and redepositing 55 stETH through the Treasury.
   • Ensure proper handling of user refunds through the established treasury infrastructure.

Conclusion

IGP-105 implements a comprehensive set of optimizations that enhance protocol efficiency, improve risk management, and support ongoing development initiatives. The proposal balances immediate operational improvements with long-term infrastructure development needs, ensuring the protocol remains competitive and well-positioned for future growth. These changes collectively strengthen the protocol’s foundation while maintaining appropriate safeguards and utilization targets, and address user refund requirements through the Lite integration.