Summary
This proposal seeks community approval to redeploy the INST-ETH pool on Fluid DEX. For the time of the governance approval (~5 days), INST-ETH governance-owned liquidity will be moved to Uniswap v3 to ensure a smooth trading experience for the users. After 5 days, the pool will be migrated back to the Fluid DEX.
Context
ETH-INST DEX pool was deployed as per the IGP-56 however after the pool initiation, the team spotted a low severity bug related to a side feature updateRangePercents. No user or protocol funds are at risk, all protocol features are fully functional and secure.
The issue is only limited to when the shift module is being used when tokenIn in the swap is a native ETH token. The shift module is being called via delegate call to optimize contract size as it’s a rarely used code for side features of DEX when some changes to ranges, threshold, or center price are being made.
As per the current INST-ETH DEX pool setup, this issue will resolve itself in 10 days but to speed up the process and avoid sudden arbitrage opportunities between Fluid DEX and external DEXes, we propose to redeploy the pool with a fix. Existing DEX pools are working as intended and no changes are required.
Proposal
- Withdraw INST-ETH liquidity from the current Fluid DEX pool
- Supply INST-ETH liquidity to the Uniswap pool
- Redeploy INST-ETH pool on Fluid DEX
- Transfer INST-ETH liquidity back from Uniswap to Fluid DEX
- Team multisig will become auth of INST-ETH DEX and Vault to allow setting configs of pools according to the market situation.
Conclusion
Successful implementation of this proposal will allow for the redeploying of the INST-ETH pool on Fluid DEX and maintaining INST liquidity on the market to address liquidity crunch issues.