SIP-221: Decrease the Collateralization Ratio
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2022-03-24 |
Simple Summary
Lower the collateralization ratio for snx staking to 400% on optimism.
Overview
The SIP aims to evening out the c-ratios for SNX stakers across both ethereum and optimism, given that post debt synthesis the debt pools are unified.
Motivation
Currently the c-ratio for SNX stakers on L1 is 400% while the c-ratio for SNX stakers on L2 is 500%. After debt synthesis the debt pools of L1 and L2 effectively should remain equivalent. The c-ratio percentage should be equal for all stakers in fairness; so that minters can mint the same amount of synths independent of the network where SNX is staked.
Rationale
To even the playing field for all SNX stakers after debt synthesis independent of the network where they are staking SNX.
Given the high staking proportion on optimism (90%), we should expect the debt issued by snx stakers to increase from 46m sUSD to around 60m sUSD in the situation where all snx stakers on optimism, utilize the 100% excess minting capacity (limited at the 400% min ratio).
Specification
C-ratio on L1 = 400% C-ratio on L2 = 400%
Copyright
Copyright and related rights waived via CC0.