# \[NIP-50\] Notional V3 deployment currencies & parameters (Mainnet) **URL:** \ **Category:** \[NIP\] Notional Improvement Proposal\ **Created:** [February 20, 2024, 3:58pm UTC](https://forum.notional.finance/t/nip-50-notional-v3-deployment-currencies-parameters-mainnet/153 "2024-02-20T15:58:15Z")\ **Posts on this page:** 1\ **Page:** 1
**Author:** ![Notional\_Labs](https://yyz1.discourse-cdn.com/flex031/user_avatar/forum.notional.finance/notional_labs/32/28_2.png) [@Notional\_Labs](https://forum.notional.finance/u/Notional_Labs)\ **Post date:** [February 20, 2024, 3:58pm UTC](https://forum.notional.finance/t/nip-50-notional-v3-deployment-currencies-parameters-mainnet/153/1 "2024-02-20T15:58:15Z")
# Summary We propose deploying Notional V3 on Mainnet with the following currencies. - ETH - DAI - USDC - WBTC - wstETH - FRAX - rETH - USDT - cbETH - sDAI Each currency will support a variable rate market. Additionally, we propose that all these currencies support 3-month and 6-month fixed-rate markets, except for WBTC and sDAI, since they are primarily used as collateral currencies. # Proposal ## Minimum Collateral ratios and liquidation discounts | Currency | Haircut | Buffer | Liquidation discount | Minimum collateral ratio\* | Supply Cap | | --- | --- | --- | --- | --- | --- | | ETH | 87% | 120% | 5% | 125% | 25,000 | | DAI | 92% | 109% | 4% | 118% | 25,000,000 | | USDC | 92% | 109% | 4% | 118% | 50,000,000 | | WBTC | 84% | 120% | 5% | 130% | 500 | | wstETH | 83% | 120% | 6% | 131% | 10,000 | | FRAX | 80% | 109% | 4% | 136% | 10,000,000 | | rETH | 83% | 120% | 6% | 131% | 10,000 | | USDT | 85% | 109% | 4% | 128% | 25,000,000 | | cbETH | 83% | 120% | 6% | 131% | 10,000 | | sDAI | 92% | 109% | 5% | 118% | 25,000,000 | \*Against stables (ex:USDC) The full list of governance parameters is presented in this [spreadsheet](https://docs.google.com/spreadsheets/d/1LQGlrZ1eonV-V3QqYHdDEoA5EQ7KHX9F4Dg_lcTLeh0/edit#gid=1038781883). Supply caps will be increased gradually by governors based on user demand up to the values specified in the table above. ## Variable Interest Rate Models | Currency | Kink1 Utilization | Kink2 Utilization | Kink Rate 1 | Kink Rate 2 | Max Rate | Fee Rate | | --- | --- | --- | --- | --- | --- | --- | | ETH | 75% | 80% | 4.5% | 11.0% | 195% | 20% | | DAI | 80% | 85% | 4.7% | 11.8% | 100% | 20% | | USDC | 80% | 85% | 4.7% | 11.8% | 100% | 20% | | WBTC | 65% | 70% | 2.3% | 4.2% | 150% | 20% | | wstETH | 70% | 75% | 1.7% | 3.5% | 150% | 20% | | FRAX | 80% | 85% | 4.7% | 11.8% | 100% | 20% | | rETH | 70% | 75% | 1.7% | 3.5% | 150% | 20% | | USDT | 80% | 85% | 4.7% | 11.8% | 100% | 20% | | cbETH | 70% | 75% | 1.7% | 3.5% | 150% | 20% | | sDAI | 80% | 85% | 1.3% | 3.8% | 100% | 20% | The full list of Variable Interest Rate Model parameters is presented in this [spreadsheet](https://docs.google.com/spreadsheets/d/1LQGlrZ1eonV-V3QqYHdDEoA5EQ7KHX9F4Dg_lcTLeh0/edit#gid=2034012150). ## Fixed Interest Rate Models ### 3 Month fixed rates markets | Currency | Kink1 Utilization | Kink2 Utilization | Kink Rate 1 | Kink Rate 2 | Max Rate | Fee Rate | | --- | --- | --- | --- | --- | --- | --- | | ETH | 55% | 80% | 4.0% | 10.0% | 30% | 8% | | DAI | 60% | 80% | 4.6% | 8.6% | 30% | 8% | | USDC | 60% | 80% | 4.6% | 8.6% | 30% | 8% | | wstETH | 60% | 80% | 1.0% | 4.0% | 30% | 8% | | FRAX | 60% | 80% | 4.6% | 8.6% | 30% | 8% | | rETH | 60% | 80% | 1.0% | 4.0% | 30% | 8% | | USDT | 60% | 80% | 4.6% | 8.6% | 30% | 8% | | cbETH | 60% | 80% | 1.0% | 4.0% | 30% | 8% | ### 6 Month fixed rates markets | Currency | Kink1 Utilization | Kink2 Utilization | Kink Rate 1 | Kink Rate 2 | Max Rate | Fee Rate | | --- | --- | --- | --- | --- | --- | --- | | ETH | 55% | 80% | 4.0% | 10.0% | 30% | 8% | | DAI | 60% | 80% | 4.5% | 8.0% | 25% | 8% | | USDC | 60% | 80% | 4.5% | 8.0% | 25% | 8% | | wstETH | 60% | 80% | 1.0% | 4.0% | 25% | 8% | | FRAX | 60% | 80% | 4.5% | 8.0% | 25% | 8% | | rETH | 60% | 80% | 1.0% | 4.0% | 25% | 8% | | USDT | 60% | 80% | 4.5% | 8.0% | 25% | 8% | | cbETH | 60% | 80% | 1.0% | 4.0% | 25% | 8% | We suggest allocating 60% of LP deposits to 3-month markets and 40% to 6-month markets. Alongside, we recommend initializing all fixed-rate markets at a utilization rate of 30%. This will initialize fixed rate markets at lower rates, facilitating borrowing from these markets. Furthermore, we propose setting leveraged thresholds at 84% across all markets. We suggest setting the reserve fee share to 80% such that 80% of fixed rate trading fees will go to the protocol reserves while the remaining 20% of fees will be redistributed to liquidity providers. The full list of Fixed Interest Rate Model parameters is presented in this [spreadsheet](https://docs.google.com/spreadsheets/d/1LQGlrZ1eonV-V3QqYHdDEoA5EQ7KHX9F4Dg_lcTLeh0/edit#gid=1038781883). # Resources - [Notional V3 docs](https://docs.notional.finance/notional-v3/) - [V3 Risk docs](https://docs.notional.finance/v3-risk-parameters/) - [V3 Technical docs](https://docs.notional.finance/v3-technical-docs/deployed-contracts/notional-v3) - [V3 Dune dashboard](https://dune.com/PierreYves_Gendron/notional-dashboard)