Summary
In preparation for Notional’s upcoming quarterly roll occurring Monday, December 18th at 8:00 PM EST we propose to update some of the Notional V2 governance parameters. The proposed changes aim at facilitating the upcoming migration from Notional V2 to V3 by updating interest rate models for ETH and WBTC 6 month markets.
fCash Interest Rate Curves
Update ETH and WBTC 6M market interest rate models to align with the expected interest rate models we will use on Notional V3.
ETH
- Decrease the 6M market anchor rate from 4.5% to 2.75% to shift the logit interest rate curve downward;
- Increase the scalar rate from 60 to 65 to flatten the interest rate curve;
- Initialize the 6-month market at a proportion of 40% (2.25% interest rate).
WBTC
- Decrease the 6M anchor rate from 2.0% to 1.55% to shift the logit interest rate curve downward;
- Increase the scalar rate from 100 to 125 to flatten the interest rate curve.
Resources
- Notional v2 docs: https://docs.notional.finance/notional-v2/
- Notional V2 info dashboard: https://info.notional.finance/