SCCP-346: Update Liquidation Ratio
| Author | Kaleb |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Ethereum |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2024-08-05 |
Simple Summary
This SCCP proposes to decrease the SNX liquidationRatio from 120% to 105% on the ethereum network.
Abstract
Since the implementation of SIP-306 on the ethereum network, accounts that are below the liquidationRatio ratio, are immediately liquidated with the snx and debt socialized among stakers on v3. The only staker on v3 is the Treasury Council, who is comfortable with the change.
Motivation
Treasury is the sole staker on v3 connected to v2x at the moment, and they have the ability to absorb the liquidated snx with a significantly lower penalty. Hence, this SCCP proposes to lower the liquidation penalty in order to improve the system health by allowing for gradual liquidations to materialize.
Copyright
Copyright and related rights waived via CC0.