diff --git a/content/sccp-2128 b/content/sccp-2128 index 8355f4100..e319d95b4 100644 --- a/content/sccp-2128 +++ b/content/sccp-2128 @@ -12,21 +12,21 @@ type: Governance -This SCCP proposes to decrease the SNX `liquidationRatio` from 160% to 110% on L1 only. +As a continuation of the migration process to v3, this SCCP proposes to decrease the SNX `liquidationRatio` from 160% to 120% on L1 only, given the Treasury Councils ability to absorb liqudations. ## Abstract -With the SNX migration to v3 underway on L1, the SNX `liquidationRatio` on v2 can be reduced from 160% to 110%. +With the SNX migration to v3 underway on L1, the SNX `liquidationRatio` on v2 can be reduced from 160% to 120%. -`liquidationRatio` is the ratio below which SNX stakers in v2 can be flagged for liquidation. Once flagged, and after the `liquidationDelay` of 8 hours, the flagged staker can be liquidated. +`liquidationRatio` is the ratio below which SNX stakers in v2 can be flagged for liquidation. Once flagged, and after the `liquidationDelay` of 8 hours, the flagged staker can be liquidated. With the Legacy Market deployed, liquidations are absorbed by the Treasury Council in the v3 system. ## Motivation -The migration of SNX to v3 has begun on Ethereum via the Legacy Market defined in [SIP-306](https://sips.synthetix.io/sips/sip-306/), and so SNX liquidations in v2 are absorbed by the v3 SNX stakers. The Treasury Council has been migrated to v3, and is well capitalized to absorb any liquidations. +The migration of SNX to v3 has begun on Ethereum via the Legacy Market defined in [SIP-306](https://sips.synthetix.io/sips/sip-306/), and so SNX liquidations in v2 are absorbed exclusively by the v3 SNX stakers. The Treasury Council has been migrated to v3, and is well capitalized to absorb any liquidations. ## Copyright