SCCP-289: Update Wrapper Parameters
| Author | |
|---|---|
| Status | Rejected |
| Type | Governance |
| Network | Ethereum & Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2023-03-09 |
Simple Summary
This SCCP proposes to implement the following on both the Ethereum and Optimism networks:
- Lower the maxTokenAmount on the DAI wrapper to zero (from 20m DAI)
- Lower the burnFeeRate on the DAI wrapper to zero (from 5 bp)
- Lower the mintFeeRate on the ETH wrapper to zero (from 10 bp)
- Increase the ETH Wrapper maxTokenAmount to 18,000 ETH (from 15,000 ETH)
Abstract
- The maxTokenAmount is the maximum amount of synth that could be minted against a deposited a designated underlying
- The burnFeeRate is the fee rate paid when burning a synth to extract a designated underlying
- The mintFeeRate is the fee rate paid when minting a synth by depositing a designated underlying
Motivation
Currently the wrappers are at full capacity on optimism and near full capacity on Ethereum, hence the need to increase the maxTokenAmount. The primary reason behind the changes proposed in the burnFeeRate and mintFeeRate is to facilitate a gradual unwind in the skew as well as promote an increase in sUSD liquidity, needed for the continued scaling of perps v2 product line.
It is worth mentioning that should the entire mintable capacity of sETH be utilized and swapped to sUSD, the debt pool would still be skewed by around 38% long.
Copyright
Copyright and related rights waived via CC0.