SCCP-207: Lower target c-ratio to 300%
| Author | |
|---|---|
| Status | Rejected |
| Type | Governance |
| Network | Ethereum & Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2022-05-05 |
Simple Summary
Lower the target c-ratio to 300%
Abstract
This SCCP changes the target c-ratio from 350% down to 300%.
Motivation
The target c-ratio was reduced to 300% during the implementation of SIP-148 which changed the mechanism for liquidations. The intent was to raise it back to 400% once the network had stabilised. The c-ratio was then raised to 350% too quickly due to fears that the price of SNX might increase significantly, while the price has almost doubled from the low of ~$1.50 it has stablised in a range below $3 for the last several weeks. Below $3 a c-ratio of >300% puts undue pressure on stakers and on the sUSD peg on Optimism. This SCCP reduces the target c-ratio back to 300% where it should remain until price volatility has decreased and the price of SNX is above $3 for at least several weeks. Stability of the c-ratio is critical for stakers to make informed decisions about their staking strategy, this SCCP should provide confidence to stakers that the ratio will remain at 300% until SNX recovers and price volatility declines.
Copyright
Copyright and related rights waived via CC0.