This proposal suggests to update the runtime to implement the new AMM and lending market pallets and to pay 118,000 KINT as liquidity mining incentives from treasury. This is in dependence on the previously published discussion post of the Kintsugi DeFi Hub launch. Please refer to the discussion post for further details on the derivation of the results that are to be enacted with this proposal.
Apart from the runtime upgrade the implements the AMM and lending market pallets and the incentives, this proposal will set up the following lending markets, using the suggested parameters:
| Market | Max LTV | Liquidation LTV | Cap | Cap in USD* |
|---|---|---|---|---|
| Market #1: kBTC | 63% | 67% | 20 kBTC | 520,000 |
| Market #2: KSM | 54% | 61% | 30,000 KSM | 1,069,000 |
| Market #3: USDT | 65% | 69% | 800,000 USDT | 800,000 |
| Market | Base Rate | Jump Rate | Full Rate | Optimal Utilization |
|---|---|---|---|---|
| Market #1: kBTC | 0.0% | 5.0% | 50.0% | 90.0% |
| Market #2: KSM | 0.0% | 15.0% | 40.0% | 90.0% |
| Market #3: USDT | 0.0% | 15.0% | 40.0% | 90.0% |
Furthermore, the enactment of this proposal will create the following pools in the AMM pallet and payout the aforementioned liquidity rewards over a three month period:
| Pool | Tareget TVL (in USD) | APR at Target TVL | KINT rewards | KINT rewards (in USD) |
|---|---|---|---|---|
| Pool #1: kBTC/KSM | 500,000 | 25% | 45,000 | 31,500 |
| Pool #2: kBTC/USDT | 400,000 | 28% | 40,000 | 28,000 |
| Pool #3: KSM/KINT | 150,000 | 65% | 35,000 | 24,500 |
Specifically, with an average block time of 12 seconds, the rewards will be paid out over 662, 400 blocks (5 * 60 * 24 * 92 ~ 3 month), such that the block rewards will be:
- kBTC/KSM: 0.067934783 KINT
- kBTC/USDT: 0.060386473 KINT
- KMS/KINT: 0.052838164 KINT
(USD conversion rates as of 15 March 2023)
The link to the discussion post is broken. Please refer to https://kintsugi.subsquare.io/post/15
For completeness, this is a runtime upgrade
Kintsugi - Runtime Upgrade v1.23.0
We estimate this to go live on the morning of 23/03/23 (CET). This release includes the lending and AMM pallets previously only available on testnet and will activate several incentivized pools and markets.
This release contains breaking changes for Vaults so please be aware that an explicit upgrade is required once enacted. If you are using the runner, manual intervention will not be required. Collators are not strictly required to upgrade but as always we recommend they use the latest version.
⛓️ https://github.com/interlay/interbtc/releases/tag/1.23.0
🏦 https://github.com/interlay/interbtc-clients/releases/tag/1.21.0