SCCP-297: Lower Liquidator Fee Ratio
| Author | Fifa |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2023-04-24 |
Simple Summary
This SCCP proposes to lower the liquidation fee ratio from 35 bp to 2 bp.
Abstract
The liquidationFeeRatio is fee rate applied on the position size for flagging a position for liquidation, it is capped at the maxKeeperFee and floored at the keeperLiquidationFee.
Motivation
The fee should be lowered in order to incentivize keepers to liquidate large positions with priority. Currently the 35 bp fee would treat all positions with a size above 28k$ with equal priority, lowering that fee to 2 bp would result in incentivization of large positions (up to 500k$) with higher priority due to the larger fee that could be earned.
Copyright
Copyright and related rights waived via CC0.