[NIP-4] Update governance parameters
Summary
This vote is to determine if the Notional protocol should update its governance parameters. The proposed parameters (23) will change Notional’s AMM curves to be more capital efficient, allocate slightly less liquidity to the 1 Year pool for USDC & DAI, and slightly more liquidity to the 3 Month for ETH & WBTC. This update will make lending and borrowing on Notional more capital efficient with lower slippage for end-users while making better use of LP capital.
Proposed changes:
| Parameter | Current value | Proposed value |
|---|---|---|
| ETH Anchor Rates | 0.02 (2%) | 0.01 (1%) |
| DAI Anchor Rates | 0.07 (7%) | 3M: 0.02 (2%), 6M: 0.03 (3%) and, 1Y: 0.04 (4%) |
| USDC Anchor Rates | 0.07 (7%) | 3M: 0.02 (2%), 6M: 0.03 (3%) and, 1Y: 0.04 (4%) |
| WBTC Anchor Rates | 0.02 (2%) | 0.01 (1%) |
| ETH Scalar Rates | 18 | 32 |
| DAI Scalar Rates | 19 | 26 |
| USDC Scalar Rates | 19 | 26 |
| WBTC Scalar Rates | 18 | 32 |
| ETH Leverage Thresholds | 0.78 (3M) & 0.78 (6M) | 0.88 (3M) & 0.88 (6M) |
| DAI Leverage Thresholds | 0.76 (3M), 0.77 (6M) & 0.78 (1Y) | 0.90 (3M), 0.87 (6M) & 0.85 (1Y) |
| USDC Leverage Thresholds | 0.76 (3M), 0.77 (6M) & 0.78 (1Y) | 0.90 (3M), 0.87 (6M) & 0.85 (1Y) |
| WBTC Leverage Thresholds | 0.78 (3M) & 0.78 (6M) | 0.88 (3M) & 0.88 (6M) |
| ETH Deposit shares | 40% (3M) & 60% (6M) | 50% (3M) & 50% (6M) |
| DAI Deposit shares | 40% (3M), 35% (6M) & 25% (1Y) | 40% (3M), 40% (6M) & 20% (1Y) |
| USDC Deposit shares | 40% (3M), 35% (6M) & 25% (1Y) | 40% (3M), 40% (6M) & 20% (1Y) |
| WBTC Deposit shares | 40% (3M) & 60% (6M) | 50% (3M) & 50% (6M) |
| ETH Initial Proportion | 0.54 (3M), 0.53 (6M) | 0.63 (3M), 0.63 (6M) |
| WBTC Initial Proportion | 0.54 (3M), 0.54 (6M) | 0.64 (3M), 0.64 (6M) |
| Maximum Proportion (all cash groups) | 0.96 | 0.99 |
| fCash haircut (all cash groups) | 160 (8%) | 110 (5.5%) |
| fCash buffer (all cash groups) | 160 (8%) | 110 (5.5%) |
| fCash haircut liquidation discount (all cash groups) | 40 (2.0%) | 30 (1.5%) |
| fCash buffer liquidation discount (all cash groups) | 40 (2.0%) | 30 (1.5%) |
Links
The related NRC community discussion can be found here: https://commonwealth.im/notional/discussion/3963-governance-parameter-update-q2-2022 Governance parameter documentation: https://docs.notional.finance/governance
Off-Chain Vote
Yes
339.67K 100%
No
0.1 0%
Timeline
Mar 14, 2022Proposal created
Mar 14, 2022Proposal vote started
Mar 20, 2022Proposal vote ended
Oct 26, 2023Proposal updated