Summary
This proposal aims to update the market rates for USDT, USDC, 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 USDT, USDC, and wstETH Rate Curve, the following adjustments to the Rate Curves will align with current market conditions and optimize the utilization of stablecoins, and wstETH within the protocol.
USDT Market Rate Curve Adjustments
Current Rates:
- Utilization 0%: Rate 0%
- Utilization 80%: Rate 10%
- Utilization 93%: Rate 15%
- Utilization 100%: Rate 25%
Proposed Rate Curve Adjustment (preview):
- Utilization 0%: Rate 0%
- Utilization 93%: Rate 12%
- Utilization 100%: Rate 25%
USDC Market Rate Curve Adjustments
Current Rates:
- Utilization 0%: Rate 0%
- Utilization 80%: Rate 10%
- Utilization 93%: Rate 15%
- Utilization 100%: Rate 25%
Proposed Rate Curve Adjustment (preview):
- Utilization 0%: Rate 0%
- Utilization 93%: Rate 12%
- Utilization 100%: Rate 25%
wstETH Rate Curve Adjustments
Current Rates:
- Utilization 0%: Rate 0%
- Utilization 50%: Rate 15%
- Utilization 93%: Rate 12%
- Utilization 100%: Rate 100%
Proposed Rate Curve Adjustment (preview):
- Utilization 0%: Rate 0%
- Utilization 50%: Rate 10%
- Utilization 90%: Rate 10%
- Utilization 100%: Rate 100%
Reason
The proposed adjustments are designed to better reflect the current lending environment and economic conditions affecting the stablecoins and wstETH markets.
Conclusion
This proposal updates the stablecoins 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.