SCCP-265: Update ETH Wrapper Parameters

Author
StatusImplemented
TypeGovernance
NetworkEthereum & Optimism
ImplementorTBD
ReleaseTBD
ProposalLoading status...
Created2022-12-18

Simple Summary

  • Increase the maxTokenAmount on the ETH Wrapper to 15k ETH on both Ethereum and Optimism, from 5000 and 3700 ETH respectively.
  • Change the burnFeeRate on the ETH wrappr to 10 bp, from 5 bp on optimism and 5% on ethereum.
  • Change the mintFeeRate on the ETH wrappr from the market rate to 25 bp in iterative steps.

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 WETH.
  • The burnFeeRate determines the fee that is paid when burning sUSD to release the wrapped underlying.
  • The mintFeeRate determines the fee that is paid when minting sUSD by locking up ETH in the ETH wrapper.

Motivation

The primary motivation allowing for gradual scaling of the debt pool with wrappers, as per SCCP-264, while ensuring the skew imbalance is minimized.

Copyright and related rights waived via CC0.