SIP-247: Setup new wETH Wrappr

Simple Summary

This SIP proposes to create a wETH wrappr, with the wrappr factory with the following parameters:

• mintFeeRate of 5 bp
• burnFeeRate of 5 bp
• maxTokenAmount of 5k ETH

Abstract

• The mintFeeRate is the rate paid by those who wrap the underlying to issue the synth equivalent.
• The burnFeeRate is the rate paid by those who unwrap the underlying by burning the equivalent synth.
• The maxTokenAmount is max amount of synth that can be minted by the wrappr.

Motivation

The debt pool is long skewed 11k ETH ($20m) and 1,000 BTC ($29m), the increase in the wrappr cap will not result in negative skeweness, even if all the additional capacity is sent to stables. A new wrappr with the factory is proposed to be initialized, as to transition to the new contracts that provides more flexibility by allowing an unwind with a negative burnFeeRate. Lastly, the new atomic exchange function would be rendered more useful with some wrappr capacity, as traders who would want to trader ETH to USDC would be able to mint sETH with ETH.

Technical Specification

This SIP requires calling the createWrapper the WrapperFactory with the following parameters:

• token: 0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2
• currencyKey: sETH
• synthContractByName: ProxysETH

Then updating the parameters of the wrappr under the SystemSettings contract.

Configurable Values (Via SCCP)

• mintFeeRate
• burnFeeRate
• maxTokenAmount

Copyright

Copyright and related rights waived via CC0.