Instadapp

Summary

This proposal aims to set the initial tight limits to prepare for the launch of the next two DEX Pools rsETH<>ETH & weETHs<>ETH along with their corresponding vaults on liquidity layer and set team multisig as the auth for the new DEXes while removing team multisig as auth from ETH<>USDC, INST<>ETH DEXes and corresponding vaults. It also increases the USDC allowance of cbBTC<>USDC & WBTC<>USDC vaults on Reserve Contract. Finally, the proposal increases the borrow allowance and LTV of the stETH redemption protocol, updates the FLuid reserve contract implementation and updates the cbBTC<>wBTC DEX Config.

Code Changes

Set dust allowance for the two new DEXes

• DEX Pool 13 rsETH<>ETH: 0x276084527b801e00db8e4410504f9baf93f72c67

  • Supply Configuration-
    • Supply Mode: 1
    • Supply Expand Percent: 25%
    • Supply Expand Duration: 12 hours
    • Base Withdrawal Limit in USD: $50K

• DEX Pool 14 weETHs<>ETH: 0x080574d224e960c272e005aa03efbe793f317640

  • Supply Configuration-
    • Supply Mode: 1
    • Supply Expand Percent: 25%
    • Supply Expand Duration: 12 hours
    • Base Withdrawal Limit in USD: $50K

Set dust allowance for the new Vaults corresponding to the new DEX Pools

• Vault ID 78 rsETH-ETH(Smart Collateral)/wstETH Vault: 0x9a64e3eb9c2f917cbadde75ad23bb402257acf2e

• Vault Type: TYPE 2

  • Borrow Configuration-
    • Borrow Mode: 1
    • Borrow Expand Percent: 20%
    • Borrow Expand Duration: 12 hours
    • Borrow Base Limit in USD: $40K
    • Borrow Max Limit in USD: $50K

• Vault ID 79 rsETH/wstETH Vault: 0x025c1494b7d15aa931e011f6740e0b46b2136cb9

• Vault Type: TYPE 1

• Supply Configuration-

  • Supply Mode: 1
  • Supply Expand Percent: 25%
  • Supply Expand Duration: 12 hours
  • Base Withdrawal Limit in USD: $50K
  • Borrow Configuration:
    • Borrow Mode: 1
    • Borrow Expand Percent: 20%
    • Borrow Expand Duration: 12 hours
    • Borrow Base Limit in USD: $40K
    • Borrow Max Limit in USD: $50K

• Vault ID 80 weETHs-ETH(Smart Collateral)/wstETH Vault: 0x153a0d021aed5d20d9e59e8b9ecc9e3e9276f6c3

• Vault Type: TYPE 2

  • Borrow Configuration-
    • Borrow Mode: 1
    • Borrow Expand Percent: 20%
    • Borrow Expand Duration: 12 hours
    • Borrow Base Limit in USD: $40K
    • Borrow Max Limit in USD: $50K

Update Team Multisig as the Auth

The Avocado team multisig: 0x4F6F977aCDD1177DCD81aB83074855EcB9C2D49e

• Add as DEX Auth from:

  • DEX Pool 13 - rsETH<>ETH
  • DEX Pool 14 - weETHs<>ETH

• Add as Vault Auth from:

  • Vault ID 78 - rsETH-ETH / wstETH
  • Vault ID 79 - rsETH / wstETH
  • Vault ID 80 - weETHs-ETH / wstETH

• Remove as DEX Auth from:

  • DEX Pool 11 - New INST<>ETH
  • DEX Pool 12 - New USDC<>ETH

• Remove as Vault Auth from:

  • Vault ID 76 - New INST-ETH/ETH
  • Vault ID 77 - New USDC-ETH/USDC-ETH

Increase Allowance and LTV of stETH redemption protocol

• Redemption Protocol: 0x1F6B2bFDd5D1e6AdE7B17027ff5300419a56Ad6b
  • Updated Borrow Allowance: 10K ETH
  • Updated LTV: 95%

Update Fluid Reserve Contract Implementation

• Updated Implementation: 0xE2283Cdec12c6AF6C51557BB4640c640800d7060

Increase USDC allowance for BTC/stable vaults on Fluid Reserve

• cbBTC/USDC: 0x01c7c1c41dea58b043e700eFb23Dc077F12a125e
  • Increase allowance by: 4K
• WBTC/USDC: [x6F72895Cf6904489Bcd862c941c3D02a3eE4f03e ](https://etherscan.io/address/x6F72895Cf6904489Bcd862c941c3D02a3eE4f03e #code)
  • Increase allowance by: 6K

Update cbBTC<>wBTC Dex Config

• Update Min & Max Center Price: 0.3% - 0.2%

Description

This proposal focuses on configuring the Liquidity Layer allowances while adding team multisig as auth for the newly deployed DEX Pools and Vaults:

DEX Pools:

• DEX Pool 13 - rsETH<>ETH
• DEX Pool 14 - weETHs<>ETH

Vaults:

• Vault ID 78 - rsETH-ETH / wstETH - TYPE 2 [Smart Collateral]
• Vault ID 79 - rsETH / wstETH - TYPE 1
• Vault ID 80 - weETHs-ETH / wstETH - TYPE 2 [Smart Collateral]

Description

This governance proposal aims to optimize the Liquidity Layer by configuring allowances and authorization for newly deployed DEX Pools and Vaults. The proposal encompasses the following:

1. DEX Pool Configuration:

   • Establish dust allowance and supply configurations for two new DEX pools:
     • DEX Pool 13 - rsETH<>ETH
     • DEX Pool 14 - weETHs<>ETH
   • Dynamically adjusts the min & max center price for the cbBTC<>wBTC dex pool between 0.3% - 0.2% range based on execution time center price

2. Vault Management:

   • Set up dust allowances, borrow, and supply configurations for three new vaults:
     • Vault ID 78 - rsETH-ETH / wstETH - TYPE 2 [Smart Collateral]
     • Vault ID 79 - rsETH / wstETH - TYPE 1
     • Vault ID 80 - weETHs-ETH / wstETH - TYPE 2 [Smart Collateral]

3. Multisig Authorization Updates:

   • Add Avocado team multisig as an auth for the new rsETH<>ETH & weETHs<>ETH DEX pools and vaults
   • Remove team multisig as auth from recent INST<>ETH & ETH<>USDC pools and vaults

4. Additional Protocol Adjustments:

   • Increase allowance and LTV for the stETH redemption protocol
   • Update the Fluid Reserve Contract implementation
   • Increase USDC allowance for BTC/stable vaults on Fluid Reserve Contract

These modifications will enhance liquidity management, improve protocol flexibility, and maintain robust governance controls.

Conclusion

This proposal introduces key updates to the Liquidity Layer focusing on configuring rsETH<>ETH & weETHs<>ETH DEX pools and vaults. By setting tight borrowing and withdrawal limits, additional protocol adjustments as shown in the description, by assigning the Avocado team multisig as the vault authority and removing from the last set of DEXes and Vaults, this proposal ensures the liquidity layer is optimized for efficient and flexible management of liquidity for the DEX Protocol.