From 2d5dd0284919e6b0f40f2be8d7131edbe04239ec Mon Sep 17 00:00:00 2001
From: Afif <83029531+aband1@users.noreply.github.com>
Date: Tue, 2 Apr 2024 10:57:07 -0400
Subject: [PATCH] Create sip-371.md

---
 content/sips/sip-371.md | 30 ++++++++++++++++++++++++++++++
 1 file changed, 30 insertions(+)
 create mode 100644 content/sips/sip-371.md

diff --git a/content/sips/sip-371.md b/content/sips/sip-371.md
new file mode 100644
index 000000000..ede813733
--- /dev/null
+++ b/content/sips/sip-371.md
@@ -0,0 +1,30 @@
+---
+sip: 371
+title: Add sUSDe LP collateral support to Synthetix V3 on Arbitrum
+network: Arbitrum
+status: Draft
+type: Governance
+author: fifa
+created: 2024-04-02
+release: TBD
+---
+
+## Simple Summary
+This SIP proposes to add Ethena's staked USDe (sUSDe) as LP collateral to Synthetix V3 on Arbitrum. 
+
+## Abstract
+Add sUSDe as a supported collateral type for Arbtirum V3 deployment with minting at 125% C-ratio and a maximum LP cap of $50M. 
+
+## Motivation
+Ethena imports basis yield from centralized exchanges by holding ETH and LST's with offsetting short positions in ETH perpetual futures market, with the bulk of the yield distributed to sUSDe holders (currently earning ~30%+ APR so far this year). Yield bearing collateral can drastically improve the capital efficiency of providing liquidity to markets on Synthetix V3 and sUSDe presents an attractive option to fulfill this need. A discussion on the various risk factors and considerations associated with Ethena and USDe can be found [here](https://forum.makerdao.com/t/morpho-spark-dai-vault-update-1-april-2024/24006#performance-and-pool-selection-1). 
+
+## Technical Specification
+Implementation of this SIP will be contingent on:
+1) Progression of the ongoing rollout of Synthetix V3 on Arbitrum 
+2) Support for USDe and sUSDe on the Arbitrum network
+3) Availability of an sUSDe price oracle on Arbitrum
+
+## Configurable Values (Via SCCP)
+- Maximum LP amount: $50M
+- Issuance Ratio: 125%
+- Liquidation Ratio: 105%