SCCP-159: Allow for sETH borrowing against ETH deposits
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2021-12-22 |
Simple Summary
This SCCP proposes to include sETH borrowing to the multi-collateral loan contract which was deployed under SIP-195.
Abstract
The function that needs to be called addSynths under the CollateralEth contract with the following parameters (SynthsETH,sETH) allows for sETH borrowing against ETH deposits.
Motivation
The primary motivation is to growth the supply of sETH on optimism to meet the growing needs of Lyra traders without utilizing the positive ETH skew which will help offset the negative debt pool skew on L1. In addition, adding sETH borrowing will divert some traffic to the staking site and increase synergies between snx stakers and synth users. The configuration of the sETH loans will be the same as those of sUSD, with 0 minting fee, a 300 bp per year interest rate and a minimum collateralization ratio of 120%.
Copyright
Copyright and related rights waived via CC0.