SCCP-2115: Update Issuance Ratio
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Ethereum & Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2024-06-03 |
Simple Summary
This SCCP proposes to update the issuanceRatio ratio from 10% currently (i.e. 1,000% cratio) to 11.11% (i.e. 900% cratio).
Abstract
The issuance ratio is the ratio that determines the maximum amount of sUSD that can be minted for a staked amount of snx collateral.
Motivation
The temporary increase in collateralization ratio was previously implemented in order to rollout SIP-2059, with the debt windfall benefiting stakers that took on the historical legacy debt from the long ETH skew. With sip-2059 being mostly rolled out, and changes being to the discount rate planned to be implemented in slow incremental steps, the issuanceRatio can be restored back to previous levels. This SCCP proposes to start off that process with, with gradual changes to the issuanceRatio being proposed to limit the impact on the protocol.
Copyright
Copyright and related rights waived via CC0.