Instadapp

Summary

This proposal aims to streamline the integration of newly deployed DEX pools and vaults within the Liquidity Layer, while deprecating old DEXes and vaults to resolve a low-severity issue. It includes the configuration of the first three DEX pools and ten newly added vaults (Types 2, 3, and 4), with strict borrowing and withdrawal limits. Additionally, the Avocado team multisig will be assigned as the vault authority for these new vaults. The proposal also incorporates updated rate curves for wstETH, cbBTC, and WBTC, along with the implementation of an upgraded Liquidity Layer User Module.

Furthermore, it updates the iETHv2 Lite implementations to ensure compatibility with the upcoming Fluid DEX Protocol.

Code Changes

Configure the Three DEXes on the Liquidity Layer

Set the borrow and supply parameters for the following DEX pools:

• DEX Pool 1
  wstETH<>ETH: 0x0B1a513ee24972DAEf112bC777a5610d4325C9e7
  • Supply Configuration:
    • Supply Mode: 1
    • Supply Expand Percent: 25%
    • Supply Expand Duration: 12 hours
    • Base Withdrawal Limit in USD: $50,000
  • Borrow Configuration:
    • Borrow Mode: 1
    • Borrow Expand Percent: 20%
    • Borrow Expand Duration: 12 hours
    • Borrow Base Limit in USD: $40,000
    • Borrow Max Limit in USD: $50,000
• DEX Pool 2
  USDC<>USDT: 0x667701e51B4D1Ca244F17C78F7aB8744B4C99F9B
  • Borrow Configuration:
    • Borrow Mode: 1
    • Borrow Expand Percent: 20%
    • Borrow Expand Duration: 12 hours
    • Borrow Base Limit in USD: $40,000
    • Borrow Max Limit in USD: $50,000
• DEX Pool 3
  cbBTC<>wBTC: 0x3C0441B42195F4aD6aa9a0978E06096ea616CDa7
  • Supply Configuration:
    • Supply Mode: 1
    • Supply Expand Percent: 25%
    • Supply Expand Duration: 12 hours
    • Base Withdrawal Limit in USD: $50,000
  • Borrow Configuration:
    • Borrow Mode: 1
    • Borrow Expand Percent: 20%
    • Borrow Expand Duration: 12 hours
    • Borrow Base Limit in USD: $40,000
    • Borrow Max Limit in USD: $50,000

List and Set Limits for the New Vaults on the Liquidity Layer

• wstETH-ETH (Smart Collateral) / wstETH-ETH (Smart Debt) Vault: 0x528CF7DBBff878e02e48E83De5097F8071af768D

  • Vault Type: TYPE 4

• ETH / USDC-USDT (Smart Debt) Vault: 0x3E11B9aEb9C7dBbda4DD41477223Cc2f3f24b9d7

  • Vault Type: TYPE 3
  • Supply Configuration:
    • Supply Mode: 1
    • Supply Expand Percent: 25%
    • Supply Expand Duration: 12 hours
    • Base Withdrawal Limit in USD: $40,000

• wstETH / USDC-USDT (Smart Debt) Vault: 0x221E35b5655A1eEB3C42c4DeFc39648531f6C9CF

  • Vault Type: TYPE 3
  • Supply Configuration:
    • Supply Mode: 1
    • Supply Expand Percent: 25%
    • Supply Expand Duration: 12 hours
    • Base Withdrawal Limit in USD: $40,000

• weETH / USDC-USDT (Smart Debt) Vault: 0x01F0D07fdE184614216e76782c6b7dF663F5375e

  • Vault Type: TYPE 3
  • Supply Configuration:
    • Supply Mode: 1
    • Supply Expand Percent: 25%
    • Supply Expand Duration: 12 hours
    • Base Withdrawal Limit in USD: $40,000

• WBTC / USDC-USDT (Smart Debt) Vault: 0x59fa2F51F5c8fFfceB538180EC47A869eC3DBd4a

  • Vault Type: TYPE 3
  • Supply Configuration:
    • Supply Mode: 1
    • Supply Expand Percent: 25%
    • Supply Expand Duration: 12 hours
    • Base Withdrawal Limit in USD: $40,000

• cbBTC / USDC-USDT (Smart Debt) Vault: 0x47b6e2c8a0cB072198f17ccC6C7634dCc7126c3E

  • Vault Type: TYPE 3
  • Supply Configuration:
    • Supply Mode: 1
    • Supply Expand Percent: 25%
    • Supply Expand Duration: 12 hours
    • Base Withdrawal Limit in USD: $40,000

• sUSDe / USDC-USDT (Smart Debt) Vault: 0xe210d8ded13Abe836a10E8Aa956dd424658d0034

  • Vault Type: TYPE 3
  • Supply Configuration:
    • Supply Mode: 1
    • Supply Expand Percent: 25%
    • Supply Expand Duration: 12 hours
    • Base Withdrawal Limit in USD: $40,000

• cbBTC-WBTC (Smart Collateral) / cbBTC-WBTC (Smart Debt) Vault: 0xDCe03288F9A109150f314ED0Ca9b59a690300d9d

  • Vault Type: TYPE 4

• cbBTC-WBTC (Smart Collateral) / USDC: 0x4e564A29c1FC18ed9b66e5754A37fCa0C8a980ff

  • Vault Type: TYPE 2
  • Borrow Configuration:
    • Borrow Mode: 1
    • Borrow Expand Percent: 20%
    • Borrow Expand Duration: 12 hours
    • Borrow Base Limit in USD: $20,000
    • Borrow Max Limit in USD: $25,000

• cbBTC-WBTC (Smart Collateral) / USDT: 0xf7FA55D14C71241e3c970E30C509Ff58b5f5D557

  • Vault Type: TYPE 2
  • Borrow Configuration:
    • Borrow Mode: 1
    • Borrow Expand Percent: 20%
    • Borrow Expand Duration: 12 hours
    • Borrow Base Limit in USD: $20,000
    • Borrow Max Limit in USD: $25,000

Borrowing Limits from IGP-43 Update

As part of deprecating the old vaults and DEX pools configured under IGP-43, the borrowing limits assigned to those vaults and dexes will be reduced to near zero. This ensures that the legacy vaults are effectively discarded and prevents further usage.

Setting Team Multisig as Vault Auth for the Above Vaults

The Avocado team multisig: 0x4F6F977aCDD1177DCD81aB83074855EcB9C2D49e will serve as the authority for vault management, responsible for setting up the initial configuration of the new vaults. Additionally, the team multisig, which was previously added to the vaults under IGP-43, will be removed from those older vaults as part of this update. This adjustment ensures alignment with the new protocol configurations and streamlines vault management moving forward.

Update iETHv2 Lite implementations

• Adds wstETH-ETH dex as a protocol on iETHv2 as protocolID 11. Set max protocol ratio as 95%.

• Add Avocado team multisig: 0x4F6F977aCDD1177DCD81aB83074855EcB9C2D49e as secondary auth and rebalancer.

• Claim Module:

  • Old Address: 0xc10A855055Eb3939FCaA512253Ec3f671C4Ab839
  • New Address: 0xB00df786d3611acE29D19De744B4147f378715f4

• LeverageDex Module:

  • New Address: 0xbeE5CDBd7Ae69b31CeAEB16485e43F3Bbc1b6983

• UnwindDex Module:

  • New Address: 0x635D70Fab1B1c3f7E9F3d30Bd1DeB738Daf87725

• View Module:

  • Old Address: 0x24d58FcFA6d74c5aCc1E4b6814BF5703e1CDd8a8
  • New Address: 0x038c28580A22E2b74bfb13E00e9c0a75CD732342

• Admin Module:

  • Old Address: 0xe8620e95b52ec1CD29dA337519a43D8fFB07e82C
  • New Address: 0x1BF97Df3D9eFa7036e96fB58F6c4CCfB2a2fDa21

• Update Dummy Implementation: 0x41C4cB513C98717a91F591C17bf127e8cc7F5d2F

Other Updates on Liquidity Layer

• Update Liquidity Layer UserModule

  • Old Address:0x8eC5e29eA39b2f64B21e32cB9Ff11D5059982F8C
  • New Address:0x6967e68F7f9b3921181f27E66Aa9c3ac7e13dBc0

• wstETH:

• Proposed wstETH Rate Curve:

  • Utilization 0%: Rate 0.5%
  • Utilization 80%: Rate 1%
  • Utilization 90%: Rate 5%
  • Utilization 100%: Rate 100%

• WBTC:

• Proposed WBTC Rate Curve:

  • Utilization 0%: Rate 1%
  • Utilization 80%: Rate 3%
  • Utilization 90%: Rate 10%
  • Utilization 100%: Rate 100%

• cbBTC:

• Proposed cbBTC Rate Curve:

  • Utilization 0%: Rate 1%
  • Utilization 80%: Rate 3%
  • Utilization 90%: Rate 10%
  • Utilization 100%: Rate 100%

Description

This proposal primarily focuses on listing and configuring the Liquidity Layer allowances for the newly deployed DEX pools and Vaults, while deprecating and resolving issues with legacy configurations.

DEX Pools:

• wstETH-ETH - [Smart Collateral Pool / Smart Debt Pool]
• USDC-USDT - [Smart Debt Pool]
• cbBTC-WBTC - [Smart Collateral Pool / Smart Debt Pool]

Vaults:

• wstETH-ETH / wstETH-ETH - TYPE 4 [Smart Collateral / Smart Debt]
• ETH / USDC-USDT - TYPE 3 [Smart Debt]
• wstETH / USDC-USDT - TYPE 3 [Smart Debt]
• weETH / USDC-USDT - TYPE 3 [Smart Debt]
• WBTC / USDC-USDT - TYPE 3 [Smart Debt]
• cbBTC / USDC-USDT - TYPE 3 [Smart Debt]
• sUSDe / USDC-USDT - TYPE 3 [Smart Debt]
• cbBTC-WBTC / cbBTC-WBTC - TYPE 4 [Smart Collateral / Smart Debt]
• cbBTC-WBTC / USDC - TYPE 2 [Smart Collateral]
• cbBTC-WBTC / USDT - TYPE 2 [Smart Collateral]

This proposal configures all the necessary borrowing and withdrawal limits for smooth interaction between these DEX pools, vaults, and the Liquidity Layer. It also designates the Avocado team multisig as the vault authority for swiftly managing the configuration of the newly created vaults in preparation for the upcoming launch.

Liquidity Layer Updates:

• This proposal includes updates to the Liquidity Layer User Module implementation, ensuring compatibility with the Fluid DEX Protocol.
• Rate curves for wstETH, WBTC, and cbBTC on the Liquidity Layer are also adjusted to optimize asset utilization and better reflect market conditions.

iETHv2 Updates:

• The iETHv2 Vault implementation will also be updated to support the integration of the Fluid DEX Protocol.
• New protocol settings, including max protocol ratios, will be introduced, and the Avocado team multisig will be added as the secondary authority and rebalancer for the iETHv2 implementation.

Deprecation of Legacy Vaults and DEXes:

To ensure alignment with the new configurations, the borrowing limits for the old vaults and dexes listed under IGP-43 will be set to near zero, effectively deprecating them and resolving a low-severity issue. The Avocado team multisig, previously assigned to those older vaults, will be removed. This ensures streamlined management and security for the upcoming launch.

Conclusion

This proposal introduces key updates to the Liquidity Layer and iETHv2 Vault, focusing on configuring new DEX pools and vaults while deprecating old vaults from IGP-43. By setting tight borrowing and withdrawal limits, adjusting rate curves for assets like wstETH, WBTC, and cbBTC, and assigning the Avocado team multisig as the vault authority, this proposal ensures the system is optimized for efficient and flexible liquidity management for upcoming DEX protocol launch.