Proposing changes to the Arbitrum markets

Proposal Discussion
1

Tl;DR

  • To prevent capital flight, we must respond to changing borrow APRs in the DeFi ecosystem.

  • We suggest increasing borrow APRs for USDC.e.

  • We suggest decreasing borrow APRs for WETH.

  • Some markets deserve higher risk factors (LTV/LT).

Summary of changes by market
bridgeETHv6
Use WETH IR curve in the following markets: wstETH, ARB, wBTC, rETH, GRAIL

Screenshot 2024-03-13 at 9.30.20 AM
Screenshot 2024-03-13 at 9.30.20 AM1684×882 52 KB

stableHighCapV5
Use USDC.e IR curve in the following markets: wstETH, ARB, wBTC, rETH, stEUR, LUSD

Screenshot 2024-03-13 at 9.29.35 AM
Screenshot 2024-03-13 at 9.29.35 AM1684×882 59.1 KB

stableHighCapV6
Use USDC.e IR curve in the following markets: PENDLE, RDNT, GRAIL, GMX, MAGIC

Screenshot 2024-03-13 at 9.29.47 AM
Screenshot 2024-03-13 at 9.29.47 AM1680×886 60.6 KB

stableHighCapV7
Use USDC.e IR curve in the following markets: SILO, WOO, GNS, JONES, PREMIA

Screenshot 2024-03-13 at 9.42.32 AM
Screenshot 2024-03-13 at 9.42.32 AM1684×892 62.8 KB

stableHighCapV8
Use USDC.e IR curve in the following markets: PLS, Y2K, JOE

Screenshot 2024-03-13 at 9.40.43 AM
Screenshot 2024-03-13 at 9.40.43 AM1678×882 66.1 KB

volatileOpt65Base9p1
Use RDNT IR curve in the following markets: RDNT

Screenshot 2024-03-13 at 9.31.58 AM
Screenshot 2024-03-13 at 9.31.58 AM1678×884 54.5 KB

Find all IR curves here

Full Changes
wstETH-WETH-USDC market

A- Increase market efficiency

wstETH

  • Increase LT to 90%
  • Increase LTV to 80%

WETH

  • Increase LT to 90%
  • Increase LTV to 85%

B- Update IRM params

Use bridgeETHv6 parameters for WETH

  • uopt: 80%
  • IR at 70%: 3.2%
  • Minimal rate at 100% U: 14%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

Use stableHighCapV5 parameters for USDC.e

  • Set clin at 14%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

wBTC-WETH-USDC market

A- Increase market efficiency

wBTC

  • Increase LT to 85%
  • Increase LTV to 80%

WETH

  • Increase LT to 90%
  • Increase LTV to 80%

B- Update IRM params

Use bridgeETHv6 parameters for WETH

  • uopt: 80%
  • IR at 70%: 3.2%
  • Minimal rate at 100% U: 14%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

Use stableHighCapV5 parameters for USDC.e

  • Set clin at 14%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

ARB-WETH-USDC market

A- Increase market efficiency

ARB

  • Increase LT to 80%
  • Increase LTV to 70%

B- Update IRM params

Use bridgeETHv6 parameters for WETH

  • uopt: 80%
  • IR at 70%: 3.2%
  • Minimal rate at 100% U: 14%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

Use stableHighCapV5 parameters for USDC.e

  • Set clin at 14%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

rETH-WETH-USDC market

A- Update IRM params

Use bridgeETHv6 parameters for WETH

  • uopt: 80%
  • IR at 70%: 3.2%
  • Minimal rate at 100% U: 14%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

Use stableHighCapV5 parameters for USDC.e

  • Set clin at 14%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

PENDLE-WETH-USDC market

  • Update IRM params

Use stableHighCapV6 parameters for USDC.e

  • Set clin at 16%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

RDNT-WETH-USDC market
USDC.e
Use stableHighCapV6 parameters for USDC.e

  • Set clin at 16%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

RDNT

Use volatileOpt65Base9p1 parameters for RDNT

GRAIL-WETH-USDC market

A- Update IRM params

WETH

Use bridgeETHv6 parameters for WETH

  • uopt: 80%
  • IR at 70%: 3.2%
  • Minimal rate at 100% U: 14%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

USDC.e

Use stableHighCapV6 parameters for USDC.e

  • Set clin at 16%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

stEUR-WETH-USDC market

  • Update IRM params

USDC.e
Use stableHighCapV5 parameters for USDC.e

  • Set clin at 15%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

GMX-WETH-USDC market

  • Update IRM params

USDC.e

Use stableHighCapV6 parameters for USDC.e

  • Set clin at 16%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

WOO-WETH-USDC market

1- Update IRM params

USDC.e

Use stableHighCapV7 parameters for USDC.e

  • Set clin at 18%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

SILO-WETH-USDC market

  • Update IRM params
    USDC.e
    Use stableHighCapV7 parameters for USDC.e
  • Set clin at 18%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

GNS-WETH-USDC market

  • Update IRM params

USDC.e

Use stableHighCapV7 parameters for USDC.e

  • Set clin at 18%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

MAGIC-WETH-USDC market

1- Update IRM params

USDC.e

Use stableHighCapV7 parameters for USDC.e

  • Set clin at 18%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

WINR-WETH-USDC market

USDC.e

  • Update IRM params

Use stableHighCapV7 parameters for USDC.e

  • Set clin at 18%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

JONES-WETH-USDC market

  • Update IRM params
    USDC.e
    Use stableHighCapV7 parameters for USDC.e
  • Set clin at 18%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

LUSD-WETH-USDC market
USDC.e

1- Update IRM params

USDC.e

Use stableHighCapV7 parameters for USDC.e

  • Set clin at 18%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

JOE-WETH-USDC market

  • Update IRM params

USDC.e

Use stableHighCapV7 parameters for USDC.e

  • Set clin at 18%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

PREMIA-WETH-USDC market

  • Update IRM params

USDC.e

Use stableHighCapV7 parameters for USDC.e

  • Set clin at 18%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

Y2K-WETH-USDC market

  • Update IRM params

USDC.e

Use stableHighCapV8 parameters for USDC.e

  • Set clin at 20%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)

PLS-WETH-USDC market

  • Update IRM params

USDC.e

Use stableHighCapV8 parameters for USDC.e

  • Set clin at 20%
  • Use a slow growth rate
  • Set the minimal rate at 27% when utilization is 100%
  • APR is to drop to the floor rate immediately when utilization drops to below optimal (80%)
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