Instadapp

Summary

This proposal helps to set limits at launch for the weETHs<>ETH DEX Pool along with its corresponding vault on liquidity layer, also sets set the initial tight limits to prepare for the launch of mETH/stable vaults, while increasing the ETH<>USDC DEX and Vault limits. The proposal also helps to withdraw funds from reserve contract and update the market rates for USDC, USDT, GHO & USDe on liquidity layer.

Code Changes

Set dust allowance for the new mETH/stable Vaults

• Vault ID 81
  mETH/USDC Vault: 0x121fA331c070E8e304973F7bb0bB25F0B7E4A042

• Vault Type: TYPE 1

• Supply Configuration-

  • Supply Mode: 1
  • Supply Expand Percent: 25%
  • Supply Expand Duration: 12 hours
  • Base Withdrawal Limit in USD: $20K
  • Borrow Configuration:
    • Borrow Mode: 1
    • Borrow Expand Percent: 20%
    • Borrow Expand Duration: 12 hours
    • Borrow Base Limit in USD: $10K
    • Borrow Max Limit in USD: $15K

• Vault ID 82
  mETH/USDT Vault: 0x4D649348087282D8A78328cF34045C13A2D7b9E8

• Vault Type: TYPE 1

• Supply Configuration-

  • Supply Mode: 1
  • Supply Expand Percent: 25%
  • Supply Expand Duration: 12 hours
  • Base Withdrawal Limit in USD: $20K
  • Borrow Configuration:
    • Borrow Mode: 1
    • Borrow Expand Percent: 20%
    • Borrow Expand Duration: 12 hours
    • Borrow Base Limit in USD: $10K
    • Borrow Max Limit in USD: $15K

• Vault ID 83
  mETH/GHO Vault: 0xB6D5de17efDbd6081c47eC69EB27cF3f24Aa48B5

• Vault Type: TYPE 1

• Supply Configuration-

  • Supply Mode: 1
  • Supply Expand Percent: 25%
  • Supply Expand Duration: 12 hours
  • Base Withdrawal Limit in USD: $20K
  • Borrow Configuration:
    • Borrow Mode: 1
    • Borrow Expand Percent: 20%
    • Borrow Expand Duration: 12 hours
    • Borrow Base Limit in USD: $10K
    • Borrow Max Limit in USD: $15K

Set launch allowance weETHs<>ETH DEX

• DEX Pool 14
  weETHs<>ETH:
  • Supply Configuration-
    • Supply Mode: 1
    • Supply Expand Percent: 25%
    • Supply Expand Duration: 12 hours
    • Base Withdrawal Limit in USD: $7.5M

Set launch allowance for the weETHs Vault

• Vault ID 80
  weETHs-ETH(Smart Collateral)/wstETH Vault:
• Vault Type: TYPE 2
  • Borrow Configuration-
    • Borrow Mode: 1
    • Borrow Expand Percent: 20%
    • Borrow Expand Duration: 12 hours
    • Borrow Base Limit in USD: $7.5M
    • Borrow Max Limit in USD: $9.5M

Update Team Multisig as the Auth

The Avocado team multisig: 0x4F6F977aCDD1177DCD81aB83074855EcB9C2D49e

• Add as Vault Auth from:

  • Vault ID 81 - mETH/USDC
  • Vault ID 82 - mETH/USDT
  • Vault ID 83 - mETH/GHO

• Remove as DEX Auth from:

  • DEX Pool 14 - weETHs<>ETH

• Remove as Vault Auth from:

  • Vault ID 80 - weETHs-ETH / wstETH

Increase limits of ETH<>USDC DEX Pool and Vaults Limits

• ETH-USDC Dex Pool:

  • Supply Configuration:
    • Supply Mode: 1
    • Supply Expand Percent: 50%
    • Supply Expand Duration: 1 hours
    • Base Withdrawal Limit: $15M
  • Borrow Configuration:
    • Borrow Mode: 1
    • Borrow Expand Percent: 50%
    • Borrow Expand Duration: 1 hours
    • Borrow Base Limit: $12M
    • Borrow Max Limit: $30M

• ETH-USDC (Smart Collateral) / ETH-USDC (Smart Debt) Vault:

  • Borrow Configuration:

    • Borrow Mode: 1
    • Borrow Expand Percent: 20%
    • Borrow Expand Duration: 12 hours
    • Borrow Base Limit: 5M Shares
    • Borrow Max Limit: 10M Shares

  • Max Supply Shares: 15M shares

  • Max Borrow Shares: 10M shares

Withdraw funds from Reserve contract into Team Multisig

• Token 0:
  • Ether = 300 ETH
• Token 1:
  • Wrapped Bitcoin = Max balance of Reserve contract

Adjust GHO, USDC, USDT & USDe Market Rate Curve on Liquidity Layer

USDC Rate Curve:

• Utilization 0%: Rate 0%
• Utilization 85%: Rate 12%
• Utilization 93%: Rate 15%
• Utilization 100%: Rate 40%

USDT Rate Curve:

• Utilization 0%: Rate 0%
• Utilization 85%: Rate 12%
• Utilization 93%: Rate 15%
• Utilization 100%: Rate 40%

GHO Rate Curve:

• Utilization 0%: Rate 0%
• Utilization 85%: Rate 12%
• Utilization 93%: Rate 15%
• Utilization 100%: Rate 40%

USDe Rate Curve:

• Utilization 0%: Rate 0%
• Utilization 85%: Rate 12%
• Utilization 93%: Rate 15%
• Utilization 100%: Rate 40%

Description

This governance proposal boosts the growth of Fluid by launching new Vaults and expanding the limits of the DEXes while also syncing with the market by adjustment of the rate curves. The proposal includes the following:

1. DEX Pool Configuration:

   • Update launch allowance, the supply configurations for:
     • DEX Pool 14 - weETHs<>ETH
   • Increase ETH<>USDC DEX Pool and Vaults Limits

2. Vault Management:

   • Set up dust allowances for the mETH/stable vaults
     • Vault ID 81 - mETH/USDC - TYPE 1
     • Vault ID 82 - mETH/USDT - TYPE 1
     • Vault ID 83 - mETH/GHO - TYPE 1
   • Update launch allowances, the borrow and supply configurations for:
     • Vault ID 80 - weETHs-ETH / wstETH - TYPE 2 [Smart Collateral]

3. Multisig Authorization Updates:

   • Add Avocado team multisig as an auth for the new mETH/USDC, mETH/USDT & mETH/GHO vaults
   • Remove team multisig as auth from the recent weETHs<>ETH DEX pool and corresponding vault

4. Additional Protocol Updates:

   • Withdraw funds from Reserve contract into Team Multisig
   • Adjust GHO, USDC, USDT & USDe Market Rate Curve on Liquidity Layer

Conclusion

The proposed updates will improve liquidity by expansion of DEX Pool and Vault configs, increase operational flexibility, and align the protocol with evolving market dynamics by fine-tuning the market rate curves. These adjustments optimize the liquidity layer and facilitates the growth of Fluid.