Summary
This proposal aims to update the market rates for USDC, USDT, and wstETH on the Fluid platform to better align with current market dynamics and optimize asset utilization.
Proposal
The Instadapp team is proposing the following changes to the Rate Curves for USDC, USDT, wstETH. This also updates the ETH Reserve Factor. These adjustments will align with current market conditions and optimize utilization within the protocol.
USDC Market Rate Curve Adjustments
Current Rates:
- Utilization 0%: Rate 0%
- Utilization 80%: Rate 12%
- Utilization 93%: Rate 18%
- Utilization 100%: Rate 33.33%
Proposed Rate Curve Adjustment (Preview Curve)
- Utilization 0%: Rate 0%
- Utilization 80%: Rate 10%
- Utilization 93%: Rate 15%
- Utilization 100%: Rate 25%
USDT Market Rate Curve Adjustments
Current Rates:
- Utilization 0%: Rate 0%
- Utilization 80%: Rate 12%
- Utilization 93%: Rate 18%
- Utilization 100%: Rate 33.33%
Proposed Rate Curve Adjustment (Preview Curve)
- Utilization 0%: Rate 0%
- Utilization 80%: Rate 10%
- Utilization 93%: Rate 15%
- Utilization 100%: Rate 25%
wstETH Market Rate Curve Adjustments
wstETH utilizes a unique rate curve see here for more details
Current Rates:
- Utilization 0%: Rate 0%
- Utilization 50%: Rate 17%
- Utilization 90%: Rate 14%
- Utilization 100%: Rate 100%
Proposed Rate Curve Adjustment (Preview Curve)
- Utilization 0%: Rate 0%
- Utilization 50%: Rate 15%
- Utilization 93%: Rate 12%
- Utilization 100%: Rate 100%
Set Max Borrow Limit:
- 88% of totalSupply
ETH Liquidity Layer
- Update Reserve Factor: 10%
Reason
The proposed adjustments aim to ensure that the rates for USDC, USDT, and wstETH. are competitive and reflective of the current market conditions. By updating these Rate Curves on the liquidity layer, we can better align the Fluid protocol with broader market trends and optimize the utilization of these assets within the protocol.
Result
This proposal updates the Rate Curves for USDC, USDT, and wstETH on the Fluid platform, ensuring that the rates are better matched to current market conditions and updates the ETH Reserve Factor on the liquidity layer.
