SCCP-246: Update staking liquidation parameters
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Ethereum & Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2022-11-11 |
Simple Summary
Increase liquidationPenalty to 45% from 30% and selfLiquidationPenalty to 40% from 20%. Also reduce liquidationDelay from 12 hours to 8 hours.
Abstract
This SCCP proposes adjustments to SNX staking liquidation parameters to better align staking incentives towards repayment of debt and increase the robustness of the protocol.
Motivation
The incentives to repay debt are currently weakened by insufficiently punitive liquidation penalties. While volatility is heightened, lengthy flagging periods also can impose excess risk on healthy accounts and result in incongruences between liquidation rewards and debt assumed via socialized liquidations.
Copyright
Copyright and related rights waived via CC0.