Instadapp

Summary

This proposal implements several key changes: (1) updating range parameters for the sUSDS<>USDT DEX pair, (2) reducing borrow limits for deprecated USDC-ETH DEX, (3) removing team multisig authorization from XAUT<>PAXG DEX, and (4) standardizing liquidation thresholds across BTC vaults. These changes collectively enhance protocol security, optimize market parameters, and improve risk management across various protocol components.

Code Changes

Action 1: Update Range Percent for sUSDS<>USDT DEX

• DEX Pool 31
  sUSDS<>USDT:
  • Upper Range: 0.15% (unchanged)
  • Lower Range: 0.01% (updated)

Action 2: Update Max Borrow Limits for Deprecated DEXes

• DEX Pool 5
  USDC-ETH:
  • USDC Configuration:
    • Base Debt Ceiling: $1
    • Max Debt Ceiling: $1,000
  • ETH Configuration:
    • Base Debt Ceiling: 0.001 ETH
    • Max Debt Ceiling: 0.4 ETH

Action 3: Remove Team MS as Auth on XAUT<>PAXG DEX

• DEX Pool 32
  XAUT<>PAXG:
  • Remove Team Multisig authorization

Action 4: Update Liquidation Threshold for BTC-stable Vaults

• Liquidation Threshold: 90%
• Updated Vaults:

  • Vault ID 21
    wBTC-USDC

  • Vault ID 22
    wBTC-USDT

  • Vault ID 59
    wBTC-GHO

  • Vault ID 72
    wBTC-USDe

  • Vault ID 29
    cbBTC-USDC

  • Vault ID 30
    cbBTC-USDT

  • Vault ID 60
    cbBTC-GHO

  • Vault ID 73
    cbBTC-USDe

  • Vault ID 86
    cbBTC-sUSDS

Description

This proposal implements several key changes to enhance protocol security and optimize market parameters. The changes include:

1. DEX Parameter Updates:

   • Update range parameters for sUSDS<>USDT DEX (Pool 31)
   • Optimize trading efficiency with adjusted range settings
   • Maintain upper range while reducing lower range for better price stability

2. Security Enhancements:

   • Remove team multisig authorization from XAUT<>PAXG DEX (Pool 32)
   • Reduce potential attack vectors by removing unnecessary permissions
   • Enhance overall protocol security through authorization cleanup

3. Risk Management:

   • Reduce borrow limits for deprecated USDC-ETH DEX (Pool 5)
   • Set minimal debt ceilings to effectively deprecate the DEX
   • Prevent new positions while allowing existing users to manage their positions

4. Vault Standardization:

   • Standardize liquidation thresholds across all BTC vaults to 90%
   • Update 9 vaults (5 wBTC and 4 cbBTC) with consistent parameters
   • Improve risk management through uniform liquidation settings

Conclusion

These updates collectively strengthen the protocol’s risk management framework while optimizing operational parameters. The standardization of liquidation thresholds and removal of unnecessary authorizations enhance security, while the DEX parameter updates improve trading efficiency.