SCCP-120: Decrease SNX Inflationary Rewards on BTC shorts to 8k SNX from 16k SNX
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Ethereum |
| Implementor | TBD |
| Release | TBD |
| Created | 2021-05-31 |
Simple Summary
This SCCP proposes to decrease the SNX inflationary rewards paid on BTC shorts to 8k SNX per week from 16k SNX per week.
Abstract
Decreasing the inflationary rewards paid on BTC shorts will help boost the weekly snx inflation paid to minters.
Motivation
SNX inflation dedicated towards BTC shorts were being done initially due to the persistently large skew on BTC. However, currently the total amount of sBTC synths issued is around $50 million making up a smaller portion of the debt pool, with around a third of it being offset by shorts. The shorts are effectively costing minters in snx inflation around 50% of the net open position per year which seems high, given the wide availability of cost effective tools to offset that BTC skew.
Copyright
Copyright and related rights waived via CC0.