From 0f64c372cde4331dd5e566ae26269dba027330a9 Mon Sep 17 00:00:00 2001 From: kaleb Date: Thu, 29 Feb 2024 18:17:08 +0100 Subject: [PATCH 1/2] Create sccp-2085.md --- content/sccp/sccp-2085.md | 34 ++++++++++++++++++++++++++++++++++ 1 file changed, 34 insertions(+) create mode 100644 content/sccp/sccp-2085.md diff --git a/content/sccp/sccp-2085.md b/content/sccp/sccp-2085.md new file mode 100644 index 000000000..aaa60aa6d --- /dev/null +++ b/content/sccp/sccp-2085.md @@ -0,0 +1,34 @@ +--- +sccp: 2083 +network: Ethereum +title: Update LUSD Wrapper Parameters +author: Kaleb (@kaleb-keny) +status: Draft +created: 2024-02-29 +type: Governance +--- + +# Simple Summary + +This SCCP proposes to update the LUSD wrapper parameter on Ethereum to the following: +- `maxTokenAmount`: sUSD 5m +- `mintFeeRate`: 50 bp +- `burnFeeRate`: 100 bp + +# Abstract + +- The `burnFeeRate` is a parameter that determines the fee to be paid in order to release the underlying, when a synth is burned +- The `mintFeeRate` is the rate that paid for locking up a certain underlying to mint it's respective synth equivalent. +- The `maxTokenAmount` is the max amount allowed to be used to issue a synth with a underlying specified in the wrapper contract, in this case it's LUSD. + + +# Motivation + +The main motivation is the recent increase in usage of sUSD for perp trading, along with the set increase in interest rate on loans, as per [SCCP-2081](https://sips.synthetix.io/sccp/sccp-2081/) which might increase the premium pressure on the peg. +It is worth pointing out, that is preferable to scale synth for demand with wrappers over loans, because LUSD wrappers do not cause skew imbalances on their own. + +# Copyright + +Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). + + From 26028b8f0f0f2ac7381f59248bf0e3a1f8903c8e Mon Sep 17 00:00:00 2001 From: kaleb Date: Thu, 29 Feb 2024 18:18:53 +0100 Subject: [PATCH 2/2] Update sccp-2085.md --- content/sccp/sccp-2085.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/content/sccp/sccp-2085.md b/content/sccp/sccp-2085.md index aaa60aa6d..819fde1c6 100644 --- a/content/sccp/sccp-2085.md +++ b/content/sccp/sccp-2085.md @@ -1,5 +1,5 @@ --- -sccp: 2083 +sccp: 2085 network: Ethereum title: Update LUSD Wrapper Parameters author: Kaleb (@kaleb-keny)