Summary

This vote is to determine if the Notional protocol should update its governance parameters ahead of the quarterly roll. The proposed parameters (10) would change Notional’s markets AMM curves to make them more appealing to borrowers. These changes are necessary in order to facilitate borrowing for ETH markets and to increase capital efficiency for WBTC markets.

Proposed changes:

Parameter	Current value	Proposed value
ETH Anchor Rate	0.03 (3M), 0.03 (6M)	0.045 (3M), 0.045 (6M)
WBTC Anchor Rate	0.01 (3M), 0.01 (6M)	0.015 (3M), 0.015 (6M)
ETH Scalar Rate	45 (3M), 45 (6M)	60 (3M), 60 (6M)
WBTC Scalar Rate	66 (3M), 66 (6M)	75 (3M), 75 (6M)
ETH Leverage Thresholds	0.86 (3M) & 0.86 (6M)	0.72 (3M) & 0.72 (6M)
DAI Leverage Thresholds	0.84 (3M), 0.84 (6M) & 0.84 (1Y)	0.77 (3M), 0.77 (6M) & 0.77 (1Y)
USDC Leverage Thresholds	0.84 (3M), 0.84 (6M) & 0.84 (1Y)	0.77 (3M), 0.77 (6M) & 0.77 (1Y)
WBTC Leverage Thresholds	0.88 (3M) & 0.88 (6M)	0.87 (3M) & 0.87 (6M)
ETH Initial Proportion	0.29 (3M), 0.29 (6M)	0.08 (3M), 0.08 (6M)
WBTC Initial Proportion	0.42 (3M), 0.42 (6M)	0.26 (3M), 0.26 (6M)

Links

The related NRC community discussion can be found here: https://commonwealth.im/notional/discussion/8327-governance-parameter-update-q1-2023

Governance parameter documentation: https://docs.notional.finance/governance