closedEnded 2 years ago · Snapshot (Offchain)
[NIP-34] Update Prime Cash and fCash interest rate models (Arbitrum)
By 0xCece...ed2eB1
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Summary
In preparation for Notional’s upcoming quarterly roll occurring Monday, December 18th at 8:00 PM EST, we propose a set of parameter updates to increase capital efficiency and utilization across Notional’s V3 Arbitrum markets. More specifically, these proposed changes aim to make the protocol more efficient by increasing the target utilization rate of Notional Prime Cash markets and lowering the spread between Prime Cash borrowers and Prime Cash Lenders. Additionally, we propose a set of parameter updates aiming at lowering fixed borrow rates, making the protocol more attractive to fixed-rate borrowers and leveraged vault users.
Prime Cash Interest Rate Models
Current parameters
| Parameters | ETH | Stablecoins | Liquid Staking Derivatives |
|---|---|---|---|
| kinkUtilization1 | 15 (15%) | 10 (10%) | 50 (50%) |
| kinkUtilization2 | 70 (70%) | 80 (80%) | 70 (70%) |
| kinkRate1 (1/256) | 2 (1.52%) | 5(1.96%) | 1 (0.59%) |
| kinkRate2 (1/256) | 6 (4.57%) | 13 (5.10% ) | 2 (1.17%) |
| maxRate25BPS | 255 (195%) | 192 (100.5%) | 225 (195%) |
| minFeeRate5BPS | 10 (0.5%) | 10 (0.5%) | 10 (0.5%) |
| maxFeeRate25BPS | 160 (40%) | 160 (40%) | 160 (40%) |
| feeRatePercent | 20 (20%) | 20 (20%) | 20 (20%) |
Proposed parameters
| Parameters | ETH | Stablecoins | Liquid Staking Derivatives |
|---|---|---|---|
| kinkUtilization1 | 15 (15%) | 10 (10%) | 50 (50%) |
| kinkUtilization2 | 80 (80%) | 85 (85%) | 75 (75%) |
| kinkRate1 (1/256) | 2 (1.52%) | 6 (2.36%) | 1 (0.59%) |
| kinkRate2 (1/256) | 5 (3.81%) | 12 (4.71%) | 2 (1.17%) |
| maxRate25BPS | 255 (195%) | 192 (100.50%) | 225 (150%) |
| minFeeRate5BPS | 10 (0.50%) | 10 (0.50%) | 10 (0.50%) |
| maxFeeRate25BPS | 160 (40%) | 160 (40%) | 160 (40%) |
| feeRatePercent | 20 (20%) | 20 (20%) | 20 (20%) |
fCash Interest Rate Models
Current parameters (3M fCash Markets)
| Parameters | ETH | Stablecoins | Liquid Staking Derivatives |
|---|---|---|---|
| kinkUtilization1 | 15 (15%) | 15 (15%) | 15 (15%) |
| kinkUtilization2 | 70 (70%) | 80 (80%) | 65 (65%) |
| kinkRate1 (1/256) | 17 (1.99%) | 17 (1.99%) | 5 (0.59%) |
| kinkRate2 (1/256) | 51 (5.98%) | 51 (5.98%) | 15 (1.76%) |
| maxRate25BPS | 120 (30%) | 120 (30%) | 120 (30%) |
| minFeeRate5BPS | 3 (0.15%) | 3 (0.15%) | 2 (0.10%) |
| maxFeeRate25BPS | 8 (2.00%) | 8 (2.00%) | 8 (2.00%) |
| feeRatePercent | 8 (8%) | 8 (8%) | 8 (8%) |
| Initial proportion | 50 (50%) | 50 (50%) | 50 (50%) |
| Deposit share | 55 (55%) | 55 (55%) | 50 (50%) |
| Leverage threshold | 70 (70%) | 80 (80%) | 65 (65%) |
Proposed parameters (3M fCash Markets)
| Parameters | ETH | Stablecoins | Liquid Staking Derivatives |
|---|---|---|---|
| kinkUtilization1 | 15 (15%) | 15 (15%) | 25 (25%) |
| kinkUtilization2 | 75 (75%) | 80 (80%) | 75 (75%) |
| kinkRate1 (1/256) | 27 (3.16%) | 30 (3.52%) | 6 (0.70%) |
| kinkRate2 (1/256) | 43 (5.04%) | 51 (5.98%) | 17 (1.99%) |
| maxRate25BPS | 120 (30%) | 120 (30.00%) | 120 (30.00%) |
| minFeeRate5BPS | 3 (0.15%) | 3 (0.15%) | 2 (0.10%) |
| maxFeeRate25BPS | 8 (2.00%) | 8 (2.00%) | 8 (2.00%) |
| feeRatePercent | 8 (8%) | 8 (8.00%) | 8 (8.00%) |
| Initial proportion | 50.00% | 50.00% | 50.00% |
| Deposit share | 55.00% | 55.00% | 50.00% |
| Leverage threshold | 75.00% | 80.00% | 75.00% |
Current parameters (6M fCash Markets)
| Parameters | ETH | Stablecoins | Liquid Staking Derivatives |
|---|---|---|---|
| kinkUtilization1 | 15 (15%) | 15 (15%) | 15 (15%) |
| kinkUtilization2 | 70 (70%) | 80 (80%) | 65 (65%) |
| kinkRate1 (1/256) | 20 (1.95%) | 20 (1.95%) | 6 (0.59%) |
| kinkRate2 (1/256) | 61 (5.96%) | 61 (5.96%) | 18 (1.76%) |
| maxRate25BPS | 100 (25%) | 100 (25%) | 100 (25%) |
| minFeeRate5BPS | 3 (0.15%) | 3 (0.15%) | 2 (0.10%) |
| maxFeeRate25BPS | 8 (2.00%) | 8 (2.00%) | 8 (2.00%) |
| feeRatePercent | 8 (8%) | 8 (8%) | 8 (8%) |
| Initial proportion | 50 (50%) | 50 (50%) | 50 (50%) |
| Deposit share | 45 (45%) | 45 (45%) | 50 (50%) |
| Leverage threshold | 70 (70%) | 80 (80%) | 65 (65%) |
Proposed parameters (6M fCash Markets)
| Parameters | ETH | Stablecoins | Liquid Staking Derivatives |
|---|---|---|---|
| kinkUtilization1 | 15 (15%) | 40 (40%) | 25 (25%) |
| kinkUtilization2 | 75 (75%) | 80 (80%) | 75 (75%) |
| kinkRate1 (1/256) | 10 (0.98%) | 25 (2.44%) | 4 (0.39%) |
| kinkRate2 (1/256) | 41 (4.00%) | 51 (4.98%) | 12 (1.17%) |
| maxRate25BPS | 100 (25.00%) | 100 (25.00%) | 100 (25.00%) |
| minFeeRate5BPS | 3 (0.15%) | 3 (0.15%) | 2 (0.10%) |
| maxFeeRate25BPS | 8 (2.00%) | 8 (2.00%) | 8 (2.00%) |
| feeRatePercent | 8 (8.00%) | 8 (8.00%) | 8 (8.00%) |
| Initial proportion | 40.00% | 40.00% | 40.00% |
| Deposit share | 45.00% | 45.00% | 50.00% |
| Leverage threshold | 60.00% | 60.00% | 60.00% |
Resources
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0Votes 14
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0xCd0D...E507D7 | 700,142 | For |
 0x66bd...65a1a3 | 283,515 | For |
 0x6330...8e4162 | 16,704 | For |
 0xbcB0...eB66E6 | 14,907 | For |
 0x8B67...5bb179 | 4,715 | For |
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Proposal Status
- Mon December 11 2023, 12:12 amVoting Period Starts
- Sat December 16 2023, 12:12 amEnd Voting Period
Current Results
1-For
1.038M
Quorum 1.038M/1M