Instadapp

Summary

This proposal implements a comprehensive set of optimizations and configurations across multiple protocol components: (1) DEX configs adjustments and fee optimizations for iUSD-USDe, cbBTC-wBTC, and (s)USDe-USDT pairs, (2) borrow limit updates for sUSDe-GHO T1 vault and new USDTb vaults, (3) Adjust withdrawal limits for USDC-USDT-CONCENTRATED vaults, (4) Increase limits on (s)USDe-USDT DEX, USDC-USDT DEX and vaults related to it (5) removal of center price configurations for improved market efficiency, (6) implementation of new rate curves for USDTb, and (7) protocol revenue collection to cover past & current L2 rewards. These changes aim to enhance capital efficiency, improve risk management, and optimize market operations across the protocol.

Code Changes

Action 1: Remove MS as auth and Set rebalancer for iUSD-USDe DEX

• DEX Pool 35
  iUSD-USDe:
  • Remove Team Multisig authorization
  • Set rebalancer at fSL35 to reserve contract proxy

Action 2: Update Range for cbBTC-wBTC DEX

• DEX Pool 3
  cbBTC-wBTC:
  • Upper Range: +0.2%
  • Lower Range: -0.2%
  • Duration: 5 days

Action 3: Update Borrow Limits for sUSDe-GHO T1 vault

• Vault ID 56
  sUSDe-GHO:
  • Expand Percent: 50%
  • Expand Duration: 6 hours
  • Base Borrow Limit: $20M
  • Max Borrow Limit: $100M

Action 4: Set Launch Limits for USDC-USDT-CONCENTRATED DEX Vaults

• Vault ID 126
  sUSDe-USDT<>USDT-USDC-CONCENTRATED:

  • Expand Percent: 35%
  • Expand Duration: 6 hours
  • Base Withdrawal Limit: 5M shares
  • Remove Team Multisig auth

• Vault ID 127
  USDe-USDT<>USDT-USDC-CONCENTRATED:

  • Expand Percent: 35%
  • Expand Duration: 6 hours
  • Base Withdrawal Limit: 5M shares
  • Remove Team Multisig auth

Action 5: Set limits for fUSDTb and update rate curve for USDTb

• fUSDTb Protocol:

  • Expand Percent: 50%
  • Expand Duration: 6 hours
  • Base Withdrawal Limit: $10M
  • Set rebalancer to: 0x264786EF916af64a1DB19F513F24a3681734ce92

• USDTb Rate Curve:

  • Kink1: 85%
  • Kink2: 93%
  • Rate at Utilization Zero: 0%
  • Rate at Utilization Kink1: 1%
  • Rate at Utilization Kink2: 5%
  • Rate at Utilization Max: 40%

Action 6: Remove center price for USDC-USDT and WBTC-cbBTC DEXes

• DEX Pool 2
  USDC-USDT:

  • Remove center price configuration

• DEX Pool 3
  WBTC-cbBTC:

  • Remove center price configuration

Action 7: Collect Revenue

• Assets:
  • USDC
  • USDT
  • USDe
  • sUSDe
  • GHO
• Action: Withdraw collected funds to team multisig

Action 8: Update Limits and Parameters for sUSDe-USDT, USDe-USDT, USDC-USDT DEXes

• DEX Pool 15
  sUSDe-USDT:

  • Max Supply Shares: 50M shares (from 37.5M)
  • Trading Fee: 0.01%
  • Revenue Cut: 25%
  • Upper Range: +0.4%
  • Lower Range: -0.8%
  • Duration: 5 days

• DEX Pool 18
  USDe-USDT:

  • Max Supply Shares: 25M shares (from 17.5M)

• DEX Pool 2
  USDC-USDT:

  • Max Borrow Shares: 50M shares (from 35M)
  • Base Borrow Limit: $40M
  • Max Borrow Limit: $120M

Action 9: Update Limits for sUSDe-USDT, USDe-USDT based T2 and T4 vaults

• Vault ID 92
  sUSDe-USDT<>USDT:

  • Base Borrow Limit: $17.5M
  • Max Borrow Limit: $35M

• Vault ID 93
  USDe-USDT<>USDT:

  • Base Borrow Limit: $12.5M
  • Max Borrow Limit: $25M

• Vault ID 98
  sUSDe-USDT<>USDC-USDT:

  • Expand Percent: 50%
  • Expand Duration: 6 hours
  • Base Debt Ceiling: 20M shares
  • Max Debt Ceiling: 40M shares

• Vault ID 99
  USDe-USDT<>USDC-USDT:

  • Expand Percent: 50%
  • Expand Duration: 6 hours
  • Base Debt Ceiling: 20M shares
  • Max Debt Ceiling: 40M shares

Action 10: Set Dust Limits for USDTb vaults

• Vault ID 128
  ETH/USDTb:

  • Base Withdrawal Limit: $7k
  • Base Borrow Limit: $7k
  • Max Borrow Limit: $10k
  • Add Team Multisig auth

• Vault ID 129
  WSTETH/USDTb:

  • Base Withdrawal Limit: $7k
  • Base Borrow Limit: $7k
  • Max Borrow Limit: $10k
  • Add Team Multisig auth

• Vault ID 130
  WEETH/USDTb:

  • Base Withdrawal Limit: $7k
  • Base Borrow Limit: $7k
  • Max Borrow Limit: $10k
  • Add Team Multisig auth

• Vault ID 131
  WBTC/USDTb:

  • Base Withdrawal Limit: $7k
  • Base Borrow Limit: $7k
  • Max Borrow Limit: $10k
  • Add Team Multisig auth

• Vault ID 132
  CBBTC/USDTb:

  • Base Withdrawal Limit: $7k
  • Base Borrow Limit: $7k
  • Max Borrow Limit: $10k
  • Add Team Multisig auth

Action 11: Set Dust Limits for USDE-USDTb DEX

• DEX Pool 36
  USDE-USDTb:
  • Base Withdrawal Limit: $10k
  • Add Team Multisig auth

Description

This proposal implements a comprehensive set of changes to enhance protocol security, market efficiency, and capital utilization. The key changes include:

1. DEX Configuration and Market Efficiency:

   • Optimize trading ranges and fees for iUSD-USDe, cbBTC-wBTC, sUSDe-USDT DEXes
   • Remove center price configurations for USDC-USDT and WBTC-cbBTC DEXes to improve market efficiency
   • Set appropriate supply and borrow limits for optimal capital utilization

2. Vault and Protocol Risk Management:

   • Configure launch parameters for new USDC-USDT-CONCENTRATED vaults
   • Update borrow limits for sUSDe-GHO T1 vault
   • Set conservative dust limits for new USDTb vaults and fUSDTb
   • Implement standardized expansion parameters across vaults

3. Miscellaneous Optimization:

   • Deploy new USDTb rate curve parameters
   • Implement progressive rate structure for better capital efficiency
   • Configure rebalancer settings

4. Protocol Administration and Security:

   • Update team multisig authorization and Configure various DEXes and Vaults
   • Implement proper security controls for new vaults
   • Collect and withdraw accumulated protocol revenue

Conclusion

This proposal represents a significant step forward in protocol optimization and market efficiency. The comprehensive updates to DEX configurations, vault limits, and rate curves will improve capital utilization while maintaining robust risk management. The removal of center price configurations and implementation of new fee structures will enhance market efficiency and protocol revenue. The standardized approach to vault limits and expansion parameters ensures consistent risk management across both existing and new markets. These changes collectively strengthen the protocol’s operational efficiency, market stability, and long-term sustainability.