Update Vault Configurations v1.2

Governance
1

Summary:
This proposal updates the configuration parameters for the Fluid protocol vaults version 1.2. The new vaults offer various enhancements which improve the vault’s oracle usage and overall security as described in the proposal: Deploy Fluid Vault Upgrades. The following updates will set and update the rates for the new vaults:,

Users will need to migrate to the new vaults, users will find a 1 click migration solution on the UI

Code Changes:

Update Vault Configurations:

ETH/USDC Vault:

  • Current:
    • Collateral Factor (C.F.): 85%
    • Liquidation Threshold (L.T.): 90%
    • Max Liquidation Limit (L.M.L.): 95%
    • Liquidation Penalty (L.P.): 1%
  • New::
    • Collateral Factor (C.F.): 87%
    • Liquidation Threshold (L.T.): 92%
    • Max Liquidation Limit (L.M.L.): 95%
    • Liquidation Penalty (L.P.): 1%

ETH/USDT Vault:

  • Current:
    • Collateral Factor (C.F.): 85%
    • Liquidation Threshold (L.T.): 90%
    • Max Liquidation Limit (L.M.L.): 95%
    • Liquidation Penalty (L.P.): 2%
  • New:
    • Collateral Factor (C.F.): 87%
    • Liquidation Threshold (L.T.): 92%
    • Max Liquidation Limit (L.M.L.): 95%
    • Liquidation Penalty (L.P.): 2%

WSTETH/ETH Vault:

  • Current):
    • Collateral Factor (C.F.): 93%
    • Liquidation Threshold (L.T.): 95%
    • Max Liquidation Limit (L.M.L.): 98%
    • Liquidation Penalty (L.P.): 0.1%
  • New):
    • Collateral Factor (C.F.): 95%
    • Liquidation Threshold (L.T.): 97%
    • Max Liquidation Limit (L.M.L.): 98%
    • Liquidation Penalty (L.P.): 0.1%

WSTETH/USDC Vault:

  • Current::
    • Collateral Factor (C.F.): 80%
    • Liquidation Threshold (L.T.): 86%
    • Max Liquidation Limit (L.M.L.): 92.5%
    • Liquidation Penalty (L.P.): 2.5%
  • New:
    • Collateral Factor (C.F.): 82%
    • Liquidation Threshold (L.T.): 88%
    • Max Liquidation Limit (L.M.L.): 92.5%
    • Liquidation Penalty (L.P.): 2.5%

WSTETH/USDT Vault:

  • Current):
    • Collateral Factor (C.F.): 80%
    • Liquidation Threshold (L.T.): 86%
    • Max Liquidation Limit (L.M.L.): 92.5%
    • Liquidation Penalty (L.P.): 3%
  • New:
    • Collateral Factor (C.F.): 82%
    • Liquidation Threshold (L.T.): 88%
    • Max Liquidation Limit (L.M.L.): 92.5%
    • Liquidation Penalty (L.P.): 3%

WEETH/WSTETH Vault:

  • Current:
    • Collateral Factor (C.F.): 93%
    • Liquidation Threshold (L.T.): 95%
    • Max Liquidation Limit (L.M.L.): 96%
    • Liquidation Penalty (L.P.): 1%
  • New):
    • Collateral Factor (C.F.): 94%
    • Liquidation Threshold (L.T.): 96%
    • Max Liquidation Limit (L.M.L.): 97%
    • Liquidation Penalty (L.P.): 1%

SUSDE/USDC Vault:

  • Current:
    • Collateral Factor (C.F.): 88%
    • Liquidation Threshold (L.T.): 90%
    • Max Liquidation Limit (L.M.L.): 95%
    • Liquidation Penalty (L.P.): 2%
  • New:
    • Collateral Factor (C.F.): 90%
    • Liquidation Threshold (L.T.): 92%
    • Max Liquidation Limit (L.M.L.): 95%
    • Liquidation Penalty (L.P.): 2%

SUSDE/USDT Vault:

  • Current:
    • Collateral Factor (C.F.): 88%
    • Liquidation Threshold (L.T.): 90%
    • Max Liquidation Limit (L.M.L.): 95%
    • Liquidation Penalty (L.P.): 2%
  • New:
    • Collateral Factor (C.F.): 90%
    • Liquidation Threshold (L.T.): 92%
    • Max Liquidation Limit (L.M.L.): 95%
    • Liquidation Penalty (L.P.): 2%

WEETH/USDC Vault:

  • Current::
    • Collateral Factor (C.F.): 75%
    • Liquidation Threshold (L.T.): 80%
    • Max Liquidation Limit (L.M.L.): 90%
    • Liquidation Penalty (L.P.): 3%
  • New::
    • Collateral Factor (C.F.): 77%
    • Liquidation Threshold (L.T.): 82%
    • Max Liquidation Limit (L.M.L.): 90%
    • Liquidation Penalty (L.P.): 3%

WEETH/USDT Vault:

  • Current:
    • Collateral Factor (C.F.): 75%
    • Liquidation Threshold (L.T.): 80%
    • Max Liquidation Limit (L.M.L.): 90%
    • Liquidation Penalty (L.P.): 4%
  • New::
    • Collateral Factor (C.F.): 77%
    • Liquidation Threshold (L.T.): 82%
    • Max Liquidation Limit (L.M.L.): 90%
    • Liquidation Penalty (L.P.): 4%

Description:
This proposal updates the configuration parameters for the Fluid protocol vaults, the improved vaults will offer better security and better rates… The updates require users to migrate to the new vaults to benefit from the improved rates.

Conclusion:
This proposal finalizes the deployment of Vaults by establishing rates and allowing users to transition to the updated vaults. These adjustments ensure that the Fluid protocol stays competitive within the broader market.

To be submitted to Atlas