Instadapp

Summary

This proposal implements six key protocol upgrades: (1) withdraws 200,000 FLUID tokens for Solana LP and rewards distribution, (2) updates rate curves for USDC, USDT, and GHO with optimized parameters, (3) updates wstUSR stable T1 vault parameters across multiple pairs, (4) sets launch limits for wstUSR smart vaults T3 and concentrated vaults, (5) removes Team Multisig authorization from csUSDL-USDC DEX and sets rebalancer for smart lending, and (6) updates Lite module implementations with new swap capabilities for wstETH/weETH pairs. These changes aim to optimize capital efficiency, enhance protocol security, expand vault offerings, and improve Lite module functionality.

Code Changes

Action 1: Withdraw FLUID for Solana LP and Rewards

• Treasury Operation:
  • Withdraw 200,000 FLUID tokens from treasury to Team Multisig
  • Target: 0x4F6F977aCDD1177DCD81aB83074855EcB9C2D49e
  • Purpose: Solana LP and rewards distribution

Action 2: Update Rate Curves for USDC, USDT, GHO

• USDC Rate Curve:

  • Kink1: 85%
  • Kink2: 93%
  • Rate at Utilization Zero: 0%
  • Rate at Kink1: 6%
  • Rate at Kink2: 8%
  • Rate at Max Utilization: 25%

• USDT Rate Curve:

  • Kink1: 85%
  • Kink2: 93%
  • Rate at Utilization Zero: 0%
  • Rate at Kink1: 6%
  • Rate at Kink2: 8%
  • Rate at Max Utilization: 15%

• GHO Rate Curve:

  • Kink1: 85%
  • Kink2: 93%
  • Rate at Utilization Zero: 0%
  • Rate at Kink1: 8%
  • Rate at Kink2: 10%
  • Rate at Max Utilization: 15%

Action 3: Update wstUSR Stable T1 Vault Parameters

• Vault ID 110
  wstUSR-USDC T1 Vault:

  • Collateral Factor: 90%
  • Liquidation Threshold: 92%

• Vault ID 111
  wstUSR-USDT T1 Vault:

  • Collateral Factor: 90%
  • Liquidation Threshold: 92%

• Vault ID 112
  wstUSR-GHO T1 Vault:

  • Collateral Factor: 90%
  • Liquidation Threshold: 92%

Action 4: Set wstUSR Smart Vaults T3 and Concentrated Vault Launch Limits

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

  • Base Withdrawal Limit: $8M
  • Base Borrow Limit: $6M
  • Max Borrow Limit: $20M
  • Team Multisig Auth: Removed

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

  • Base Withdrawal Limit: $8M
  • Team Multisig Auth: Removed

• DEX Pool 2
  USDC-USDT DEX:

  • Expand Percent: 30%
  • Expand Duration: 6 hours
  • Base Borrow Limit: 2.9M shares ($6M)
  • Max Borrow Limit: 9.8M shares ($20M)

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

  • Base Withdrawal Limit: $8M
  • Team Multisig Auth: Removed

• DEX Pool 34
  USDC-USDT Concentrated DEX:

  • Expand Percent: 30%
  • Expand Duration: 6 hours
  • Base Borrow Limit: 3M shares ($6M)
  • Max Borrow Limit: 10M shares ($20M)

Action 5: Remove Team Multisig Auth from csUSDL-USDC DEX and Set Rebalancer

• DEX Pool 38
  csUSDL-USDC DEX:
  • Team Multisig Auth: Removed
• Smart Lending Contract (fSL38)
  csUSDL-USDC:
  • Rebalancer: Set to reserve contract proxy

Action 6: Lite Module Implementation Updates

• Rebalancer Module:

  • Old Implementation: 0x5343Da5F10bD9C36EA9cB04CaaE1452D8D967511
  • New Implementation: 0x475035176043478c74df4AEAb07146484E3c3530
  • Old Signatures Removed:
    • swapKingTokensToWeth (0xc4a64d17)
  • New Signatures Added:
    • swapKingTokensToWeth (0x97c8b4db)
    • transferKingTokensToTeamMS (0x84d5f112)

• AaveV3WstETHWeETHSwap Module:

  • Old Implementation: 0xa1f4499DfdBFfACA9eCe405f5B6d2076e2D9F929
  • New Implementation: 0xF95105c0f7ceBFbc5F186cE9E7D22620c75e0c8d
  • Old Signatures Removed:
    • swapWstETHToWeETH (0x1609c001)
    • swapWeETHToWstETH (0x8a47ea39)
  • New Signatures Added:
    • swapWstETHToWeETH (0x2aaa3e6c)
    • swapWeETHToWstETH (0xf0fefc66)

• Dummy Implementation:

  • New Address: 0x6Feb5478f7345aBE1d477Ff6828819b4C8ba551a

Description

This proposal implements six major changes to enhance protocol functionality, security, and operational efficiency:

1. FLUID Token Management

   • Withdraws 200,000 FLUID tokens from treasury to Team Multisig for Solana LP and rewards distribution, supporting ecosystem expansion and user incentives.

2. Rate Curve Optimization

   • Updates rate curves for USDC, USDT, and GHO with standardized kink points (85% and 93%) and optimized rate structures to improve capital efficiency and borrowing incentives while maintaining appropriate risk management.

3. wstUSR Vault Parameter Updates

   • Standardizes collateral factor (90%) and liquidation threshold (92%) across all wstUSR T1 vaults (USDC, USDT, GHO pairs) to ensure consistent risk parameters and improve user experience.

4. Smart Vault Launch Limits

   • Sets comprehensive launch limits for wstUSR smart vaults including TYPE 1 (wstUSR/USDTb), TYPE 3 (wstUSR/USDC-USDT), and concentrated vault variants with appropriate withdrawal and borrow limits to support sustainable growth.

5. DEX Authorization and Rebalancing

   • Removes Team Multisig authorization from csUSDL-USDC DEX to decentralize control and sets rebalancer for smart lending contract to reserve contract proxy for improved liquidity management.

6. Lite Module Enhancements

   • Updates Rebalancer Module with new KING rewards swap and transfer capabilities and updates the new AaveV3WstETHWeETHSwap Module to enable Lite vault functionality and support additional asset management strategies.

Conclusion

These upgrades collectively enhance protocol security, optimize capital efficiency through improved rate curves, expand vault offerings with appropriate risk parameters, and strengthen Lite module capabilities with new swap functionalities. The changes support sustainable growth while maintaining robust risk management protocols and improving overall user experience across the platform.