The bull market led to an increase in longs and changes in rates for various leverage strategies. The change in rates is noticeable for both DEXes and CEXes. This proposal aims to adjust the current quota rate ranges to take into account changing market conditions.

This doesn’t necessarily lead to any increases, the goal is just to set up the range in a more broad way. Then it’s up to GEAR stakers and gauges to decide. It’s just about optionality.

Important note: this proposal is in the “optimistic format” previously used for GIP-95. The technical multisig will queue transactions in the Timelock if the proposal gets Quorum approval. Later if the proposal ends with approval, Technical multisig executes changes after timelock delay ends. Otherwise veto multisig will cancel txs execution.

Justification

Now funding rates on CEXes and DEXes are 30%+ for ETH, BTC and 100%+ for longer tail assets (see data aggregated by Coinglass below). While on Gearbox quota limits are limited to 12% for ETH, BTC and 24/40% for other assets. It is proposed to decrease the existing gap, however, not necessarily fully close it. Just adjust it to the market needs. With that, there is also a higher chance to grow the passive side of the market (lenders) to grow TVL further.

Changes logic are following:

• There is big demand for long-ing tokens using stables on the market. Taking into account that Gearbox USDC pool already has a 20%+ yield, from the profit maximization point of view it makes sense to increase the rates from 12%. It is proposed to set targets for WBTC and WETH to 40%, while for longer tail assets to 50%. It is worth considering that on perpetuals there are peaks up to 100% and even higher, but one of our advantages is the predictability of rates, so we just can’t chase for high peak values… Proposed increase of rates allows the passive lender side to earn good yields so it seems this value is justified.
• Maker’s DSR’s rate increased to 15%. It shifts the farming landscape target to 15%+. Therefore it is proposed to use its maxRate value for USD-nominated farms. As well it is proposed to change maxRate for USD-nominated Boosted trades options.
• It is proposed to keep current values of Quota max rate for trading assets for WBTC and WETH pool.
• It is proposed to change maxRate for USDe and sUSDe to 50% as current rates on market for these assets are 60%+.

Specification

list of changes according to the logic described above:

Pool	Token	minRate	maxRate	new minRate	new maxRate
Trade USDC v3	WBTC	0.04%	12%	0.04%	40%
Trade USDC v3	WETH	0.04%	12%	0.04%	40%
Trade USDC v3	STETH	0.04%	12%	0.04%	40%
Trade USDC v3	MKR	0.80%	24%	0.80%	50%
Trade USDC v3	UNI	0.80%	24%	0.80%	50%
Trade USDC v3	LINK	0.80%	24%	0.80%	50%
Trade USDC v3	LDO	0.80%	24%	0.80%	50%
Trade USDC v3	CRV	2.40%	40%	2.40%	50%
Trade USDC v3	CVX	2.40%	40%	2.40%	50%
Trade USDC v3	yvWETH	0.04%	12%	0.04%	40%
Trade USDC v3	yvWBTC	0.04%	12%	0.04%	40%
Trade USDC v3	sDAI	0.50%	5%	0.50%	15%
Trade USDC v3	yvUSDC	0.50%	5%	0.50%	15%
Trade USDC v3	yvDAI	0.50%	5%	0.50%	15%
Trade USDC v3	stkcvxcrvUSDUSDC	1.00%	5%	1.00%	15%
Trade USDC v3	stkcvxcrvUSDUSDT	1.00%	7%	1.00%	15%
Trade USDC v3	stkcvxcrvUSDFRAX	1.00%	8%	1.00%	15%
Trade USDC v3	stkcvxcrvFRAX	1.00%	4%	1.00%	15%
Trade USDC v3	USDe	0.50%	30%	0.50%	50%
Trade USDC v3	sUSDe	0.50%	30%	0.50%	50%
Trade USDC v3	ezETH	0.50%	30%	0.50%	40%
Trade WBTC v3	yvUSDC	0.04%	12%	0.04%	27%
Trade WBTC v3	sDAI	0.04%	12%	0.04%	27%
Trade WETH v3	yvUSDC	0.04%	12%	0.04%	27%
Trade WETH v3	sDAI	0.01%	15%	0.04%	27%

Also, as a continuation of GIP-99, it is proposed to set a limit for some farms to 0:

USDC pool:

• yvDAI
• yvUSDC
• stkcvxcrvFRAX

WETH pool:

• stkcvxcrvUSDETHCRV
• stkcvxcrvUSDTWBTCWETH

The reasoning of this is that now the main use cases are in a limited set of strategies and in this regard, the remaining strategies with 0 usage do not bring any additional yield to the LPs, Credit Account users also are not interested in it, while any additional strategy continues to complicate system and increase its risks. Therefore, there is no need to keep assets with zero utilization, it is better to set a Quota Limit to 0 and return it when market conditions change.

The transactions log with all changes can be found here (log file’s md5 checksum is 023552e2aff1dfabda01737cc1a4815e).

Voting

Simple approve/reject voting