Summary

This vote is to determine if the Notional protocol should update its governance parameters ahead of the March quarterly roll. The proposed parameters (12) would facilitate borrowing at higher rates making it more capital efficient for leveraged vault users and would adapt the interest rate models based on the current rate environment.

Proposed changes

Parameter	Current values	Proposed values
ETH Anchor Rates	0.045 (3M), 0.045 (6M)	0.055 (3M), 0.045 (6M)
DAI Anchor Rates	0.035 (3M), 0.035 (6M) & 0.035 (1Y)	0.045 (3M), 0.045 (6M) & 0.05 (1Y)
USDC Anchor Rates	0.035 (3M), 0.035 (6M) & 0.035 (1Y)	0.045 (3M), 0.045 (6M) & 0.05 (1Y)
WBTC Anchor Rates	0.015 (3M), 0.015 (6M)	0.02 (3M), 0.02 (6M)
DAI Scalar Rates	48 (3M), 47 (6M), & 45 (1Y)	50 (3M), 50 (6M), & 60 (1Y)
USDC Scalar Rates	48 (3M), 47 (6M), & 45 (1Y)	50 (3M), 50 (6M), & 60 (1Y)
WBTC Scalar Rates	75 (3M), 75 (6M)	100 (3M), 100 (6M)
DAI Leverage Thresholds	0.77 (3M), 0.77 (6M) & 0.77 (1Y)	0.68 (3M), 0.68 (6M) & 0.65 (1Y)
USDC Leverage Thresholds	0.77 (3M), 0.77 (6M) & 0.77 (1Y)	0.68 (3M), 0.68 (6M) & 0.65 (1Y)
WBTC Leverage Thresholds	0.87 (3M) & 0.87 (6M)	0.81 (3M) & 0.81 (6M)
ETH Initial Proportions	0.08 (3M), 0.08 (6M)	0.28 (3M), 0.28 (6M)
WBTC Initial Proportions	0.26 (3M), 0.26 (6M)	0.50 (3M), 0.50 (6M)

Links

The related NRC community discussion can be found here: https://forum.notional.finance/t/nip-18-update-governance-parameters-q2-2023/42

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