Summary
This proposal aims to update the market rates for ETH and wstETH (Wrapped Staked ETH) 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 ETH and wstETH Rate Curve, the following adjustments to the Rate Curves will align with current market conditions and optimize utilization of ETH, and wstETH within the protocol.
ETH Market Rate Curve Adjustments
Current Rates:
- Utilization 0%: Rate 0%
- Utilization 70%: Rate 15%
- Utilization 90%: Rate 25%
- Utilization 100%: Rate 150%
Proposed Rate Curve Adjustment:
- Utilization 0%: Rate 0%
- Utilization 70%: Rate 15%
- Utilization 90%: Rate 20%
- Utilization 100%: Rate 150%
wstETH Rate Curve Adjustments
Current Rates:
- Utilization 0%: Rate 0%
- Utilization 70%: Rate 20%
- Utilization 90%: Rate 40%
- Utilization 100%: Rate 150%
Proposed Rate Curve Adjustment:
- Utilization 0%: Rate 0%
- Utilization 70%: Rate 18%
- Utilization 90%: Rate 26%
- Utilization 100%: Rate 150%
Reason
The proposed adjustments are designed to better reflect the current lending environment and economic conditions affecting the ETH and wstETH markets.
Conclusion
This proposal updates the ETH and wstETH market rates on the Fluid liquidity layer, ensuring that the rates are competitive and reflective of the broader market conditions, thereby promoting a healthy balance between borrowers and lenders on the platform.
