SCCP-252: LUSD Unwrap

Author
StatusImplemented
TypeGovernance
NetworkEthereum
ImplementorTBD
ReleaseTBD
ProposalLoading status...
Created2022-11-28

Simple Summary

This SCCP proposes that the following plan be implemented:

  • Lower the burnFeeRate, currently at 5%, to zero.
  • Burn sUSD funded by the Treasury Council, to release the LUSD.
  • Increase the burnFeeRate back to the previous levels.
  • Lower the maxTokenAmount to zero.

Abstract

The maxTokenAmount is the max amount allowed to be used to issue a synth with a underlying specified in the wrapper contract, in this case it's LUSD. The burnFeeRate determines the fee that is paid when burning sUSD to release the wrapped underlying.

Motivation

The primary motivation allowing for gradual unwind of synths issued from wrappers in order to facilitate the transaition towards the Synthetix v3.

Copyright and related rights waived via CC0.