YPP-0074.md

Proposal

Update/Fix ContangoWitch liquidation limits

Background

Contango exchange uses fixed rate markets to synthesise expirable futures. In order to allow for a smoother interaction, Yield will deploy a set of contracts specially tailored for Contango. This proposal fixes some liquidation params on the ContangoWitch

Details

Here are the steps:

1. Override the existing config for the Dec22 & Mar23 instruments

Script that performed said actions: https://github.com/yieldprotocol/environments-v2/blob/3ecd68f6c011b4371c3b8846173f7e6bc8d1b1a6/scripts/governance/contango/shared/updateWitchParams.ts

Configuration applied:

export const auctionLineAndLimits: AuctionLineAndLimit[] = [
  // ETH
  {
    baseId: ETH,
    ilkId: FYUSDC2212,
    duration: 600,
    vaultProportion: parseUnits('0.5'),
    collateralProportion: parseUnits('0.75'), // 105 / 140
    max: parseUnits('1000000', 6),
  },
  {
    baseId: ETH,
    ilkId: FYDAI2212,
    duration: 600,
    vaultProportion: parseUnits('0.5'),
    collateralProportion: parseUnits('0.75'), // 105 / 140
    max: parseUnits('1000000'),
  },
  {
    baseId: ETH,
    ilkId: FYUSDC2303,
    duration: 600,
    vaultProportion: parseUnits('0.5'),
    collateralProportion: parseUnits('0.75'), // 105 / 140
    max: parseUnits('1000000', 6),
  },
  {
    baseId: ETH,
    ilkId: FYDAI2303,
    duration: 600,
    vaultProportion: parseUnits('0.5'),
    collateralProportion: parseUnits('0.75'), // 105 / 140
    max: parseUnits('1000000'),
  },

  // USDC
  {
    baseId: USDC,
    ilkId: FYETH2212,
    duration: 600,
    vaultProportion: parseUnits('0.5'),
    collateralProportion: parseUnits('0.75'), // 105 / 140
    max: parseUnits('1000'),
  },
  {
    baseId: USDC,
    ilkId: FYDAI2212,
    duration: 600,
    vaultProportion: parseUnits('1'),
    collateralProportion: parseUnits('0.9545454545'), // 105 / 110
    max: parseUnits('1000000'),
  },
  {
    baseId: USDC,
    ilkId: FYETH2303,
    duration: 600,
    vaultProportion: parseUnits('0.5'),
    collateralProportion: parseUnits('0.75'), // 105 / 140
    max: parseUnits('1000'),
  },
  {
    baseId: USDC,
    ilkId: FYDAI2303,
    duration: 600,
    vaultProportion: parseUnits('1'),
    collateralProportion: parseUnits('0.9545454545'), // 105 / 110
    max: parseUnits('1000000'),
  },

  // DAI
  {
    baseId: DAI,
    ilkId: FYETH2212,
    duration: 600,
    vaultProportion: parseUnits('0.5'),
    collateralProportion: parseUnits('0.75'), // 105 / 140
    max: parseUnits('1000'),
  },
  {
    baseId: DAI,
    ilkId: FYUSDC2212,
    duration: 600,
    vaultProportion: parseUnits('1'),
    collateralProportion: parseUnits('0.9545454545'), // 105 / 110
    max: parseUnits('1000000', 6),
  },
  {
    baseId: DAI,
    ilkId: FYETH2303,
    duration: 600,
    vaultProportion: parseUnits('0.5'),
    collateralProportion: parseUnits('0.75'), // 105 / 140
    max: parseUnits('1000'),
  },
  {
    baseId: DAI,
    ilkId: FYUSDC2303,
    duration: 600,
    vaultProportion: parseUnits('1'),
    collateralProportion: parseUnits('0.9545454545'), // 105 / 110
    max: parseUnits('1000000', 6),
  },
]

The contracts have been deployed to Arbitrum mainnet and the proposal sent to the multisig.

Testing

The proposal approval & execution were tested on tenderly: https://dashboard.tenderly.co/Yield/contango/fork/f6c6cdd5-12e5-4645-a511-520bb4d33f1b

Proposal log

➜  environments-v2 git:(contango/fixWitchLimits) ✗ sh scripts/governance/contango/arbitrum/fixWitchAuctionLimits/fixWitchAuctionLimits.sh
++ dirname scripts/governance/contango/arbitrum/fixWitchAuctionLimits/fixWitchAuctionLimits.sh
+ HERE=scripts/governance/contango/arbitrum/fixWitchAuctionLimits
+ export CONF=/Users/bbonanno/Developer/projects/yield/environments-v2/scripts/governance/contango/arbitrum/fixWitchAuctionLimits/contango.arb_mainnet.witchLimits.config
+ CONF=/Users/bbonanno/Developer/projects/yield/environments-v2/scripts/governance/contango/arbitrum/fixWitchAuctionLimits/contango.arb_mainnet.witchLimits.config
+ RUN='npx hardhat run --network arb_mainnet'
+ npx hardhat run --network arb_mainnet scripts/governance/contango/arbitrum/fixWitchAuctionLimits/../../shared/updateWitchParams.ts
Witch#setLineAndLimit(0208, 00, 600, 500000000000000000, 750000000000000000, 1000000000000)
Witch#setLineAndLimit(0108, 00, 600, 500000000000000000, 750000000000000000, 1000000000000000000000000)
Witch#setLineAndLimit(0209, 00, 600, 500000000000000000, 750000000000000000, 1000000000000)
Witch#setLineAndLimit(0109, 00, 600, 500000000000000000, 750000000000000000, 1000000000000000000000000)
Witch#setLineAndLimit(0008, 02, 600, 500000000000000000, 750000000000000000, 1000000000000000000000)
Witch#setLineAndLimit(0108, 02, 600, 1000000000000000000, 954545454500000000, 1000000000000000000000000)
Witch#setLineAndLimit(0009, 02, 600, 500000000000000000, 750000000000000000, 1000000000000000000000)
Witch#setLineAndLimit(0109, 02, 600, 1000000000000000000, 954545454500000000, 1000000000000000000000000)
Witch#setLineAndLimit(0008, 01, 600, 500000000000000000, 750000000000000000, 1000000000000000000000)
Witch#setLineAndLimit(0208, 01, 600, 1000000000000000000, 954545454500000000, 1000000000000)
Witch#setLineAndLimit(0009, 01, 600, 500000000000000000, 750000000000000000, 1000000000000000000000)
Witch#setLineAndLimit(0209, 01, 600, 1000000000000000000, 954545454500000000, 1000000000000)
Proposal: 0x9cd021de831ea3074c356817ce59dc510e684f5486459a3e9b3a17278e202f44
Proposing
Developer: 0x05950b4e68f103d5aBEf20364dE219a247e59C23