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+---
+sccp: 2085
+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/).
+
+