Instadapp

Summary

This proposal implements nine actions: (1) updates CF, LT, and LML for sUSDE vaults on mainnet, (2) standardizes CF, LT, LML, and LP for wstUSR vaults, (3) transfers 1,000,000 $FLUID to Team Multisig for Mainnet, Plasma, and Arbitrum rewards, (4) transfers 152.2 iETHv2 (~180 ETH) to Team Multisig for Solana rewards, (5) pauses limits for cbBTC–USDT DEX and its associated smart vault, (6) pauses limits for cbBTC–ETH DEX and its associated smart vault, (7) configures supply protocol limits for fSUSDs, (8) pauses limits across multiple sUSDS vaults, and (9) pauses limits for the sUSDS DEX and its Smart Lending. These changes tighten risk controls on select markets, fund ecosystem incentives, and standardize parameters across wstUSR vaults.

Code Changes

Action 1: Update CF, LT, and LML for sUSDE on mainnet

• Vault ID 17
  sUSDe/USDC (TYPE 1)

• Vault ID 18
  sUSDe/USDT (TYPE 1)

• Vault ID 50
  sUSDe/USDC-USDT (Smart Debt) (TYPE 3)

• Vault ID 56
  sUSDe/GHO (TYPE 1)

• Vault ID 92
  sUSDe-USDT<>USDT (TYPE 2)

• Vault ID 98
  sUSDe-USDT<>USDC-USDT (TYPE 4)

• Vault ID 125
  sUSDe-GHO<>GHO-USDC (TYPE 4)

• Vault ID 126
  sUSDe-USDT<>USDT-USDC Concentrated (TYPE 4)

• Vault IDs 17, 18, 50, 56, 92, 98, 125, 126:

  • Collateral Factor (CF): 92%
  • Liquidation Threshold (LT): 94%
  • Liquidation Max Limit (LML): 96%

Action 2: Update CF, LT, LML, and LP for wstUSR vaults

• Vault ID 110
  wstUSR/USDC (TYPE 1)

• Vault ID 111
  wstUSR/USDT (TYPE 1)

• Vault ID 112
  wstUSR/GHO (TYPE 1)

• Vault ID 133
  wstUSR-USDC<>USDC (TYPE 2)

• Vault ID 134
  wstUSR-USDC<>USDC-USDT (TYPE 4)

• Vault ID 135
  wstUSR-USDC<>USDC-USDT Concentrated (TYPE 4)

• Vault ID 142
  wstUSR/USDTb (TYPE 1)

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

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

• Vault IDs 110, 111, 112, 133, 134, 135, 142, 143, 144:

  • Collateral Factor (CF): 92%
  • Liquidation Threshold (LT): 94%
  • Liquidation Max Limit (LML): 96%
  • Liquidation Penalty (LP): 2%

Action 3: Transfer $FLUID to Team Multisig for Mainnet, Plasma, Arbitrum Rewards

• Treasury Operation:
  • Withdraw: 1,000,000 $FLUID
  • Recipient: Team Multisig
  • Purpose: Incentives on Mainnet, Plasma, and Arbitrum

Action 4: Transfer iETHv2 to Team Multisig for Solana Rewards

• Treasury Operation:
  • Withdraw: 152.2 iETHv2 (~180 ETH)
  • Recipient: Team Multisig
  • Purpose: Solana ecosystem rewards

Action 5: Pause limits for cbBTC–USDT DEX and its vault

• Vault ID 105 (cbBTC–USDT T4 Smart Vault) and DEX Pool 22 (cbBTC–USDT DEX):
  • Pause smart vault supply and borrow protocol limits at DEX level
  • Pause smart vault user operations at DEX level
  • Pause DEX-level supply and borrow protocol limits for cbBTC and USDT
  • Pause user operations on DEX for cbBTC and USDT
  • Set DEX max supply shares to 0 and max borrow shares to 0; pause swap and arbitrage

Action 6: Pause limits for cbBTC–ETH DEX and its vault

• Vault ID 106 (cbBTC–ETH T4 Smart Vault) and DEX Pool 26 (cbBTC–ETH DEX):
  • Pause smart vault supply and borrow protocol limits at DEX level
  • Pause smart vault user operations at DEX level
  • Pause DEX-level supply and borrow protocol limits for cbBTC and ETH
  • Pause user operations on DEX for cbBTC and ETH
  • Set DEX max supply shares to 0 and max borrow shares to 0; pause swap and arbitrage

Action 7: Set limits for fSUSDs

• Token: fSUSDs
  • Supply Protocol Config (for sUSDs):
    • Expand Percent: 25%
    • Expand Duration: 6 hours
    • Base Withdrawal Limit: $50,000

Action 8: Pause limits for sUSDS vaults

• Vault ID 84 (ETH–sUSDS T1):

  • Pause supply for ETH via user supply config
  • Expand Percent: 25%, Expand Duration: 6 hours, Base Withdrawal Limit: 0.02 ETH
  • Pause borrow protocol limits for sUSDs

• Vault ID 85 (wstETH–sUSDS T1):

  • Pause supply for wstETH via user supply config
  • Expand Percent: 25%, Expand Duration: 6 hours, Base Withdrawal Limit: 21 wstETH
  • Pause borrow protocol limits for sUSDs

• Vault ID 86 (cbBTC–sUSDS T1):

  • Pause supply protocol limits for cbBTC
  • Pause borrow protocol limits for sUSDs
  • Pause user operations for supplying cbBTC and borrowing sUSDs

• Vault ID 91 (weETH–sUSDS T1):

  • Pause supply for weETH via user supply config
  • Expand Percent: 25%, Expand Duration: 6 hours, Base Withdrawal Limit: 0.015 weETH
  • Pause borrow protocol limits for sUSDs

• Vault ID 58 (sUSDS–GHO T1):

  • Pause borrow for GHO via user borrow config
  • Expand Percent: 25%, Expand Duration: 6 hours, Base Withdrawal Limit: 20,000 sUSDS
  • Pause supply protocol limits for sUSDS

Action 9: Pause limits for sUSDS DEX and Smart Lending

• DEX Pool 31 (sUSDS–USDT DEX):

  • Pause supply and borrow protocol limits for sUSDs and USDT
  • Pause user operations on DEX for sUSDs and USDT
  • Set DEX max supply shares to 0; pause swap and arbitrage

• Smart Lending 31 (linked to DEX Pool 31):

  • Pause supply protocol limits for the Smart Lending at DEX level
  • Pause Smart Lending user supply operations at DEX level

Description

This proposal delivers targeted risk parameter updates, temporary limit pauses, and incentive funding across multiple protocol components:

1. sUSDE vaults receive standardized risk settings (CF/LT/LML at 92/94/96) to align risk and liquidation boundaries across vaults. 2) wstUSR vaults are harmonized to CF/LT/LML of 92/94/96 and a 2% liquidation penalty to improve risk uniformity and clarity for users. 3) 1,000,000 $FLUID is transferred to fund incentives on Mainnet, Plasma, and Arbitrum, and 4) 152.2 iETHv2 (~180 ETH) is transferred for Solana ecosystem rewards. 5) and 6) cbBTC–USDT and cbBTC–ETH markets have protocol and user actions paused at both DEX and smart vault levels to reduce risk while conditions warrant. 7) fSUSDs supply protocol limits are configured with conservative expansion and withdrawal settings. 8) Multiple sUSDS vaults have supply and/or borrow limits paused, with user-level configs applied where appropriate. 9) The sUSDS–USDT DEX and its Smart Lending are paused at the protocol and user levels to strengthen risk controls.

Conclusion

These changes enhance risk management by standardizing vault parameters, pausing select cbBTC and sUSDS market actions, and setting conservative limits where needed. Simultaneously, incentive distributions are funded to support growth across Mainnet, Plasma, Arbitrum, and Solana. Collectively, these updates improve safety, predictability, and operational efficiency across the protocol.