Summary

This vote is to determine if the Notional protocol should update its governance parameters ahead of the Q4 roll. The proposed parameters (15) would change Notional’s markets AMM curves to make them more appealing to borrowers. These changes will be important in order to facilitate borrowing activity in the stablecoin and ETH markets in anticipation of the launch of strategy vaults in Q4.

Proposed changes:

Parameter	Current value	Proposed value
ETH Anchor Rate	0.01 (3M), 0.01 (6M)	0.03 (3M), 0.03 (6M)
DAI Anchor Rate	0.01 (3M), 0.01 (6M) & 0.01 (1Y)	0.035 (3M), 0.035 (6M) & 0.035 (1Y)
USDC Anchor Rate	0.01 (3M), 0.01 (6M) & 0.01 (1Y)	0.035 (3M), 0.035 (6M) & 0.035 (1Y)
WBTC Anchor Rate	0.005 (3M), 0.005 (6M)	0.01 (3M), 0.01 (6M)
ETH Scalar Rate	39 (3M), 39 (6M)	50 (3M), 50 (6M)
DAI Scalar Rate	33 (3M), 33 (6M), & 31 (1Y)	48 (3M), 47 (6M), & 45 (1Y)
USDC Scalar Rate	33 (3M), 33 (6M), & 31 (1Y)	48 (3M), 47 (6M), & 45 (1Y)
WBTC Scalar Rate	46 (3M), 46 (6M)	66 (3M), 66 (6M)
ETHLeverage Thresholds	0.88 (3M) & 0.88 (6M)	0.86 (3M) & 0.86 (6M)
DAI Leverage Thresholds	0.88 (3M), 0.88 (6M) & 0.87 (1Y)	0.84 (3M), 0.84 (6M) & 0.84 (1Y)
USDC Leverage Thresholds	0.88 (3M), 0.88 (6M) & 0.87 (1Y)	0.84 (3M), 0.84 (6M) & 0.84 (1Y)
ETH Deposit shares	50% (3M), 50% (6M)	55% (3M), 45% (6M)
WBTC Deposit shares	50% (3M), 50% (6M)	55% (3M), 45% (6M)
ETH Initial Proportion	0.77 (3M), 0.48 (6M)	0.22 (3M), 0.22 (6M)
WBTC Initial Proportion	0.64 (3M), 0.50 (6M)	0.42 (3M), 0.42 (6M)

Links

The related NRC community discussion can be found here: https://commonwealth.im/notional/discussion/6833-governance-parameter-update-q4-2022

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