[NIP-77] Update fCash market parameters Q3 2024
Summary
In preparation for Notional’s upcoming quarterly roll occurring Saturday, June 15th at 8:00 PM EDT, we propose a set of parameter updates to Notional V3. Specifically, these interest rate models will be more permissive than Q2 2024 and reflect the generally higher level of fixed interest rates in ETH and stablecoins.
These interest rate models will focus fixed rate liquidity for ETH between 7% and 18%, between 10% and 20% for stables, between 2.5% and 9% for LSDs, and between 2% and 5% for wBTC. Higher max fixed rates make the curves more permissive overall and should reduce illiquidity risk for nTokens in each currency.
fCash Interest Rate Models
We propose the following set of fCash market parameters for Notional V3’s Mainnet and Arbitrum deployments.
3 Month fCash markets
| Parameters | ETH | Stablecoins | LSDs | wBTC |
|---|---|---|---|---|
| kinkUtilization1 | 20 | 20 | 20 | 20 |
| kinkUtilization2 | 80 | 80 | 80 | 80 |
| kinkRate1 (1/256) | 28 (3.88%) | 35 (5.54%) | 5 (0.49%) | 10 (0.68%) |
| kinkRate2 (1/256) | 132 (18.3%) | 128 (20.25%) | 90 (8.79%) | 75 (5.13%) |
| maxRate25BPS | 142 (35.5%) | 152 (40.5%) | 100 (25%) | 70 (17.5%) |
| minFeeRate5BPS | 8 (0.15%) | 8 (0.15%) | 8 (0.15%) | 8 (0.15%) |
| maxFeeRate25BPS | 3 (2%) | 3 (2%) | 3 (2%) | 3 (2%) |
| feeRatePercent | 8 (8%) | 8 (8%) | 8 (8%) | 8 (8%) |
| Initial proportion | 35% | 35% | 35% | 35% |
| Deposit share | 60% | 60% | 60% | 60% |
| Leverage threshold | 86% | 86% | 86% | 86% |
6 Month fCash markets
| Parameters | ETH | Stablecoins | LSDs | wBTC |
|---|---|---|---|---|
| kinkUtilization1 | 20 | 20 | 20 | 20 |
| kinkUtilization2 | 80 | 80 | 80 | 80 |
| kinkRate1 (1/256) | 28 (3.88%) | 35 (5.54%) | 5 (0.49%) | 10 (0.68%) |
| kinkRate2 (1/256) | 132 (18.3%) | 128 (20.25%) | 90 (8.79%) | 75 (5.13%) |
| maxRate25BPS | 142 (35.5%) | 152 (40.5%) | 100 (25%) | 70 (17.5%) |
| minFeeRate5BPS | 8 (0.15%) | 8 (0.15%) | 8 (0.15%) | 8 (0.15%) |
| maxFeeRate25BPS | 3 (2%) | 3 (2%) | 3 (2%) | 3 (2%) |
| feeRatePercent | 8 (8%) | 8 (8%) | 8 (8%) | 8 (8%) |
| Initial proportion | 35% | 35% | 35% | 35% |
| Deposit share | 40% | 40% | 40% | 40% |
| Leverage threshold | 86% | 86% | 86% | 86% |
Resources
Off-Chain Vote
Timeline
Jun 10, 2024Proposal created
Jun 10, 2024Proposal vote started
Jun 13, 2024Proposal vote ended
Jun 13, 2024Proposal updated