Instadapp

Summary:
This proposal combined with IGP#31 will deploy wBTC on the Fluid protocol. This first proposal will deploy the WBTC Stablecoin vaults and prepare its associated in-kind reward, this proposal will also update the wstETH Rate Curve.

Code Changes:

Updates to the Liquidity Layer

• Proposed wBTC Rate Curve:

  • Utilization 0%: 0% Rate
  • Utilization 80%: 5% Rate
  • Utilization 100%: 100% Rate

• Proposed Token Config for wBTC:

  • Threshold: 0.3%
  • Fee: 10%
  • Max Utilization: 100%

• Current wstETH Rate Curve:

  • Utilization 0%: Rate 0%
  • Utilization 50%: Rate 10%
  • Utilization 90%: Rate 10%
  • Utilization 100%: Rate 100%

• Proposed wstETH Rate Curve:

  • Utilization 0%: Rate 0%
  • Utilization 80%: Rate 5%
  • Utilization 90%: Rate 10%
  • Utilization 100%: Rate 100%

Vault Deployments:

wBTC/USDT Vault Parameters:

• Collateral Factor (C.F.): 80%
• Liquidation Threshold (L.T.): 85%
• Max Liquidation Limit (L.M.L.): 90%
• Liquidation Penalty (L.P.): 4%
• Withdrawal Gap (W.G.): 5%
  • Supply Configuration:
    • Class: 0 (Guardian enabled)
    • Mode: 1 (with interest)
    • Expand Percent: 25%
    • Expand Duration: 12 hours
    • Base Withdrawal Limit: $5M
  • Borrow Configuration:
    • Class: 0 (Guardian enabled)
    • Mode: 1 (with interest)
    • Expand Percent: 20%
    • Expand Duration: 12 hours
    • Base Debt Ceiling: $7.5M

wBTC/USDC Vault Parameters:

• Collateral Factor (C.F.): 80%
• Liquidation Threshold (L.T.): 85%
• Max Liquidation Limit (L.M.L.): 90%
• Liquidation Penalty (L.P.): 3%
• Withdrawal Gap (W.G.): 5%
  • Supply Configuration:
    • Class: 0 (Guardian enabled)
    • Mode: 1 (with interest)
    • Expand Percent: 25%
    • Expand Duration: 12 hours
    • Base Withdrawal Limit: $5M
  • Borrow Configuration:
    • Class: 0 (Guardian enabled)
    • Mode: 1 (with interest)
    • Expand Percent: 20%
    • Expand Duration: 12 hours
    • Base Debt Ceiling: $7.5M

Allocate Rewards for wBTC/USDC and wBTC/USDT Vaults:

• WBTC/USDC Vault: Allocate 0.8 wBTC (~$50k) to Vault Reward
  • Update Vault Reward: 0x264786EF916af64a1DB19F513F24a3681734ce92
• WBTC/USDT Vault: Allocate 0.8 wBTC (~$50k) to Vault Reward
  • Update Vault Reward: 0x264786EF916af64a1DB19F513F24a3681734ce92

Description:
This proposal integrates Wrapped Bitcoin (wBTC) into Fluid by deploying wBTC/USDC and wBTC/USDT vaults with specified parameters and updates WBTC rate curve.

To prepare WBTC Rewards, this proposal will withdraw 2 WBTC from the Instadapp DAO Treasury to the reward reserve contract: 0x264786EF916af64a1DB19F513F24a3681734ce92

Conclusion:
This proposal ensures that the Fluid protocol remains competitive and efficient by deploying new wBTC vaults and updating vault parameters and the liquidity layer for upcoming vaults.

Forum Link: Deploy wBTC Vaults and Update Liquidity Layer