Instadapp

Summary

This proposal includes various updates to Fluid on mainnet, including applying the wBTC vault configurations to the cbBTC vaults, addition of new lending rewards for USDC and USDT lending, transferring stETH, wstETH, wBTC, wETH, weETH, cbETH, USDC, USDT and DAI from the treasury to the team’s multisig, removal of wBTC rewards auth handlers, and updates to the liquidity module’s auth handlers. It also involves lowering the borrow limits of the old vaults and adding the team and connector multisig as chief on the DSAv2 connector.

Code Changes

• cbBTC Vault Configuration Updates:

  • cbBTC/USDC Vault Parameters:

    • Collateral Factor (C.F.): 85%
    • Liquidation Threshold (L.T.): 88%
    • Max Liquidation Limit (L.M.L.): 92.5%
    • 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: $7.5M
      • Borrow Configuration:
        • Class: 0 (Guardian enabled)
        • Mode: 1 (with interest)
        • Expand Percent: 20%
        • Expand Duration: 12 hours
        • Base Debt Ceiling: $7.5M
        • Max Debt Ceiling: $200M

  • cbBTC/USDT Vault Parameters:

    • Collateral Factor (C.F.): 85%
    • Liquidation Threshold (L.T.): 88%
    • Max Liquidation Limit (L.M.L.): 92.5%
    • 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: $7.5M
      • Borrow Configuration:
        • Class: 0 (Guardian enabled)
        • Mode: 1 (with interest)
        • Expand Percent: 20%
        • Expand Duration: 12 hours
        • Base Debt Ceiling: $7.5M

  • cbBTC/ETH Vault Parameters:

    • Collateral Factor (C.F.): 90%
    • Liquidation Threshold (L.T.): 93%
    • Max Liquidation Limit (L.M.L.): 95%
    • Liquidation Penalty (L.P.): 2%
    • 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

  • ETH/cbBTC Vault Parameters:

    • Collateral Factor (C.F.): 90%
    • Liquidation Threshold (L.T.): 93%
    • Max Liquidation Limit (L.M.L.): 95%
    • Liquidation Penalty (L.P.): 2%
    • 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

  • wstETH/cbBTC Vault Parameters:

    • Collateral Factor (C.F.): 88%
    • Liquidation Threshold (L.T.): 91%
    • Max Liquidation Limit (L.M.L.): 94%
    • Liquidation Penalty (L.P.): 2%
    • 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

  • weETH/cbBTC Vault Parameters:

    • Collateral Factor (C.F.): 80%
    • Liquidation Threshold (L.T.): 85%
    • Max Liquidation Limit (L.M.L.): 90%
    • Liquidation Penalty (L.P.): 5%
    • 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

• Remove the wstETH/ETH rate handler: 0xB5af15a931dA1B1a7B8DCF6E2Cd31C8a3Dd1E134

• Add a new Withdrawal Auth handler: 0x82a2a351aaE9c35e7ca17d05367cbA533cAa21D7

• Remove Rewards Auth for wBTC/USDC vault: 0x4605FC1E6A49D92D97179407E823023F06D5aA0e

• Remove Rewards Auth for wBTC/USDT vault: 0xbA379AfC2829CbF5DeA14B8bc135a820e144456D

• Set new fUSDC and fUSDT rewards contract: 0x512Ac5b6Cf04f042486A198eDB3c28C6F2c6285A

  • Increase USDC allowance by 250,000 USDC
  • Increase USDT allowance by 250,000 USDT

• Lower the borrow limits of Old vaults (Vault ID 1 to 10):

  • Max Borrow Ceiling = Current Borrow + 5%
  • Base Debt Ceiling = $1000

• Add chief on DSAv2 connector:

  • Team Multisig: 0x4F6F977aCDD1177DCD81aB83074855EcB9C2D49e
  • Connector Multisig: 0xa6AEC494Aa19Dc910944E2374e9EA159dc919c59

Description

Fluid: This proposal matches the configurations of cbBTC vaults at par with wBTC vaults, now that cbBTC has established its positioning in the market. It keeps the protocol updated by removing old auths, removing wstETH/ETH rate auth, and adding a Withdrawal auth handler.
The proposal ensures smooth movement of users to new vaults by updating parameters of the old vaults.

The proposal also sets up a new rewards contract for USDC and USDT lending on mainnet and also transfers stETH, wstETH, wBTC, wETH, weETH, cbETH, USDC, USDT and DAI from DAO treasury to the team’s avocado multisig: 0x4F6F977aCDD1177DCD81aB83074855EcB9C2D49e to fund the rewards.

Defi Smart Account (DSA): Adds the team and connector multisig as the chief on DSAv2 connector, enabling the team to swiftly enable the connectors on mainnet for DSA.

Conclusion

The updates aim at improving the efficiency of the existing vaults on the protocol for a better margin from liquidations and keeping the overall protocol up to date by cleaning and updating existing handlers, auths, and the chief on DSAv2 connector. It also facilitates the slow and steady movement of users from old vaults to new vaults.

The proposal will also ensure continuous distribution of lending rewards on mainnet after the current rewards period ends.