Instadapp

Summary

The proposal aims to allow utilization of a portion of total INST supply held by governance, to establish a protocol-owned liquidity pool. This will help to ensure sustainable market depth and price stability.

Code Changes

Allocate a percentage of Total INST Supply

Governance will transfer 5% of the total INST supply to seed a protocol-owned liquidity pool.

Set a New DEX Pool on Liquidity Layer

• DEX Pool 10
  INST<>ETH: 0x8710039d5de6840ede452a85672b32270a709ae2
  • Expand percent: 50%
  • Expand time: 1hr
  • Withdrawal Base Limit in USD: $10M

New Vault Deployment

• Vault ID 75 INST-ETH / ETH Vault: 0x70ea404452ef24527c53271169e9b0651d38b354
  • Vault Type: TYPE 2
    • Mode: 1
    • Expand Percent: 20%
    • Expand Duration: 12 hours
    • Borrow Base Limit in USD: $200
    • Borrow Max Limit in USD: $300

Auth for the New DEX and Vault

The Avocado team multisig: 0x4F6F977aCDD1177DCD81aB83074855EcB9C2D49e

• Add as DEX Auth for:
  • INST<>ETH
• Add as Vault Auth for:
  • INST<>ETH / ETH

Description

This proposal seeks approval to utilize 5% of the total INST supply which is currently held by the treasury and launches a protocol-owned INST<>ETH pool as per the above parameters in order to address the growing liquidity crunch caused by increased buying demand for INST, ensuring sustainable market depth and price stability. The proposal also sets team multisig as the auth for the new INST<>ETH pool and the INST<>ETH / ETH Smart Collateral vault for the smoother initiation of the DEX and the vault.

Conclusion

The proposal will help to prevent liquidity exhaustion amidst growing demand and stabilize market conditions, avoiding unnecessary price volatility by creation of protocol-owned liquidity pool of INST<>ETH on FLUID DEX utilizing the 5% of the overall INST supply held by the governance.