[NIP-77] Update fCash market parameters Q3 2024
Summary
In preparation for Notional’s upcoming quarterly roll occurring Saturday, June 15th at 8:00 PM EDT, we propose a set of parameter updates to Notional V3. Specifically, these interest rate models will be more permissive than Q2 2024 and reflect the generally higher level of fixed interest rates in ETH and stablecoins.
These interest rate models will focus fixed rate liquidity for ETH between 7% and 18%, between 10% and 20% for stables, between 2.5% and 9% for LSDs, and between 2% and 5% for wBTC. Higher max fixed rates make the curves more permissive overall and should reduce illiquidity risk for nTokens in each currency.
fCash Interest Rate Models
We propose the following set of fCash market parameters for Notional V3’s Mainnet and Arbitrum deployments.
3 Month fCash markets
| Parameters | ETH | Stablecoins | LSDs | wBTC |
|---|---|---|---|---|
| kinkUtilization1 | 20 | 20 | 20 | 20 |
| kinkUtilization2 | 80 | 80 | 80 | 80 |
| kinkRate1 (1/256) | 28 (3.88%) | 35 (5.54%) | 5 (0.49%) | 10 (0.68%) |
| kinkRate2 (1/256) | 132 (18.3%) | 128 (20.25%) | 90 (8.79%) | 75 (5.13%) |
| maxRate25BPS | 142 (35.5%) | 152 (40.5%) | 100 (25%) | 70 (17.5%) |
| minFeeRate5BPS | 8 (0.15%) | 8 (0.15%) | 8 (0.15%) | 8 (0.15%) |
| maxFeeRate25BPS | 3 (2%) | 3 (2%) | 3 (2%) | 3 (2%) |
| feeRatePercent | 8 (8%) | 8 (8%) | 8 (8%) | 8 (8%) |
| Initial proportion | 35% | 35% | 35% | 35% |
| Deposit share | 60% | 60% | 60% | 60% |
| Leverage threshold | 86% | 86% | 86% | 86% |
6 Month fCash markets
| Parameters | ETH | Stablecoins | LSDs | wBTC |
|---|---|---|---|---|
| kinkUtilization1 | 20 | 20 | 20 | 20 |
| kinkUtilization2 | 80 | 80 | 80 | 80 |
| kinkRate1 (1/256) | 28 (3.88%) | 35 (5.54%) | 5 (0.49%) | 10 (0.68%) |
| kinkRate2 (1/256) | 132 (18.3%) | 128 (20.25%) | 90 (8.79%) | 75 (5.13%) |
| maxRate25BPS | 142 (35.5%) | 152 (40.5%) | 100 (25%) | 70 (17.5%) |
| minFeeRate5BPS | 8 (0.15%) | 8 (0.15%) | 8 (0.15%) | 8 (0.15%) |
| maxFeeRate25BPS | 3 (2%) | 3 (2%) | 3 (2%) | 3 (2%) |
| feeRatePercent | 8 (8%) | 8 (8%) | 8 (8%) | 8 (8%) |
| Initial proportion | 35% | 35% | 35% | 35% |
| Deposit share | 40% | 40% | 40% | 40% |
| Leverage threshold | 86% | 86% | 86% | 86% |
Resources
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0xCd0D...E507D7 | 821,814 | For |
 0x1876...0d2B8D | 725,740 | For |
 0x46dF...33c428 | 25,572 | For |
VOTE POWER
Proposal Status
- Mon June 10 2024, 03:10 pmVoting Period Starts
- Thu June 13 2024, 03:10 pmEnd Voting Period
Current Results
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