Summary
This proposal aims to update the market rates for wstETH (Wrapped Staked ETH) and increase borrowing caps for weETHs/wstETH market on the Fluid protocol to better align with current market dynamics and optimize asset utilization.
This proposal also seeks approval to incentivize Arbitrum stablecoins markets.
Proposal
The Instadapp team is proposing the following changes to the wstETH Rate Curve, the following adjustments to the Rate Curve and updated borrowing caps will align with current market conditions wstETH within the protocol.
wstETH Rate Curve Adjustments
Current Rates:
- Utilization 0%: Rate 0%
- Utilization 80%: Rate 3.2%
- Utilization 90%: Rate 6.4%
- Utilization 100%: Rate 100%
Proposed Rate Curve Adjustment (preview):
- Utilization 0%: Rate 0%
- Utilization 80%: Rate 2.8%
- Utilization 90%: Rate 5.6%
- Utilization 100%: Rate 100%
Update weETHs/wstETH Vault Parameters:
Current parameters:
- Borrowing Limit: 3250 wstETH
Proposed parameters:
- Borrowing Limit: 6500 wstETH
Proposed Rewards Extension
To extend the current rewards program, the following rewards will be distributed starting from the 9th of September on Arbitrum:
Additional Rewards
| Rewarded Pool | Reward | Reward Duration |
|---|---|---|
| fUSDC | 25k USDC | 30 days |
| fUSDT | 25k USDT | 30 days |
Reason
The proposed adjustments are designed to better reflect the current lending environment and economic conditions affecting weETHs and wstETH markets.
The rewards program will help to maintain expectations and competitiveness in the Fluid stablecoin markets. The team does not request additional funding from the treasury as there are leftover funds in the multisig that can be used for this program.
Conclusion
This proposal updates the wstETH market rates and borrowing caps on weETHs/wstETH on Fluid, 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. The proposal also extends the rewards program for the stablecoin markets on Arbitrum.