Summary
This proposal seeks community support to EURC markets on Fluid on the Base L2 and outlines vaults, limits, rewards, and all the initial setups. The initiative aims to expand product offerings on Fluid to enhance the protocol’s competitiveness and market positioning.
Proposal
The Instadapp team proposes the deployment of EURC lending and vaults on Fluid on Base.
Below are the configs as suggested by the team on the Lending Protocol, Vault Protocol & Liquidity Layer:
Lending Protocol
Listing of EURC on the Lending protocol. Withdrawal Limits are explained below in the Liquidity Layer section.
Vault Protocol
Fluid’s vault protocol features some familiar and as well as some new concepts for understanding the vault’s limits and parameters. See the following below:
C.F (Collateral Factor): Limit till which user can borrow.
L.T (Liquidation Threshold): Limit at which the user starts to get liquidated.
L.M.L (Liquidation Max Limit): Limit above which user gets 100% liquidated.
L.P (Liquidation Penalty): Penalty at liquidations. Applied between L.T to L.M.L.
W.G (Withdrawal Gap): Extra gap on Liquidity Layer limits reserved for liquidations.
Liquidation Max Limit or L.M.L which denotes a level at which a position is fully liquidated. While most positions will incur liquidations over time the Liquidation Max Limit prevents the debt from becoming undercollateralized in a sudden downfall.
The following vaults are proposed for launch. Once these markets are live the team will continue to propose additional vaults and assets.
1) ETH Collateral & EURC debt:
- Collateral Factor: 83%
- Liquidation Threshold: 85%
- Max Liquidation Limit: 92%
- Liquidation Penalty: 4%
- Withdrawal Gap: 5%
2) wstETH Collateral & EURC debt:
- Collateral Factor: 75%
- Liquidation Threshold: 80%
- Max Liquidation Limit: 85%
- Liquidation Penalty: 4%
- Withdrawal Gap: 5%
3) weETH Collateral & EURC debt:
- Collateral Factor: 75%
- Liquidation Threshold: 80%
- Max Liquidation Limit: 85%
- Liquidation Penalty: 6%
- Withdrawal Gap: 5%
4) cbETH Collateral & EURC debt:
- Collateral Factor: 70%
- Liquidation Threshold: 76%
- Max Liquidation Limit: 82%
- Liquidation Penalty: 6%
- Withdrawal Gap: 5%
4) cbBTC Collateral & EURC debt:
- Collateral Factor: 80%
- Liquidation Threshold: 85%
- Max Liquidation Limit: 90%
- Liquidation Penalty: 4%
- Withdrawal Gap: 5%
Liquidity Layer
Lending Limits
| Type | Withdraw Limits | Borrow Limits | Expansion % |
|---|---|---|---|
| Base (Starting Value) | $7.5m | - | 20% |
Vault Limits
| Type | Withdraw Limits | Borrow Limits | Expansion % |
|---|---|---|---|
| Base (Starting Value) | $7.5m | Base: $7.5m - Max: $200m | 20% |
Fluid Rewards
To further promote the launch of Fluid and to maximize exposure to the principal markets, we propose to reward the following pools and markets for the next 30 days:
| Rewarded Pool | Reward | Reward Duration |
|---|---|---|
| fEURC | 25k EURC | 30 days |
Rewards Setup:
25k EURC will be provided by the Gauntlet team to support the adoption of the EURC on the Base L2 chain.
Motivation
The introduction of EURC allows Fluid to attract new users who prefer Euro-pegged stablecoins over USD-pegged stablecoins and expands product offerings on Fluid to enhance the protocol’s competitiveness and market positioning.
Conclusion
This proposal sets the initial vaults and market parameters for the EURC market. This proposal also includes an early liquidity incentive to the EURC market.