Summary:
This proposal makes updates to the expansion and borrowing expansion rates on the liquidity layer.
Proposal:
The Instadapp team is proposing changes to the withdrawal and borrowing limits to allow better usability of Fluid. On launch, the limits were automated through LiquidityConfig contract [Attached image below]. We propose removing these automated adjustment and setting a static limit of 20% to 25%.
Previous limits:
Can be found here
Liquidity Layer
-
fUSDC Liquidity
- Current Expansion Percent: 20%
- Proposed Expansion Percent: 20%
-
fUSDT Liquidity
- Current Expansion Percent: 20%
- Proposed Expansion Percent: 20%
-
fWETH Liquidity
- Current Expansion Percent: 25%
- Proposed Expansion Percent: 20%
-
ETH/USDC Vault
- Current Expansion Percent: 20%
- Current Borrow Expansion Percent: 25%
- Proposed Expansion Percent: 25%
- Proposed Borrow Expansion Percent: 20%
-
ETH/USDT Vault
- Current Expansion Percent: 20%
- Current Borrow Expansion Percent: 20%
- Proposed Expansion Percent: 25%
- Proposed Borrow Expansion Percent: 20%
-
WSTETH/ETH Vault
- Current Expansion Percent: 10%
- Current Borrow Expansion Percent: 15%
- Proposed Expansion Percent: 25%
- Proposed Borrow Expansion Percent: 20%
-
WSTETH/USDC Vault
- Current Expansion Percent: 25%
- Current Borrow Expansion Percent: 25%
- Proposed Expansion Percent: 25%
- Proposed Borrow Expansion Percent: 20%
-
WSTETH/USDT Vault
- Current Expansion Percent: 25%
- Current Borrow Expansion Percent: 25%
- Proposed Expansion Percent: 25%
- Proposed Borrow Expansion Percent: 20%
This proposal will remove config handlers which will disable automated adjustment for vaults and lending tokens, and will set static limits on the liquidity layer.
Reason:
The Instadapp team has observed the current utilization of the Fluid markets in the past weeks, these adjustments will enable the liquidity layer to more effectively adapt to the usage and growth of the protocol.
