From 872f543fa1a77915be08d417762cd6083273b124 Mon Sep 17 00:00:00 2001 From: cavalier_eth <91091124+cavalier-eth@users.noreply.github.com> Date: Thu, 25 Jul 2024 22:54:26 +1000 Subject: [PATCH 1/5] Create sccp-2128 --- content/sccp-2128 | 33 +++++++++++++++++++++++++++++++++ 1 file changed, 33 insertions(+) create mode 100644 content/sccp-2128 diff --git a/content/sccp-2128 b/content/sccp-2128 new file mode 100644 index 000000000..8355f4100 --- /dev/null +++ b/content/sccp-2128 @@ -0,0 +1,33 @@ +--- +sccp: 2128 +network: Ethereum +title: Update Liquidation Ratio +author: Cavalier +status: Draft +created: 2024-07-25 +type: Governance +--- + +## Simple Summary + + + +This SCCP proposes to decrease the SNX `liquidationRatio` from 160% to 110% on L1 only. + +## Abstract + + + +With the SNX migration to v3 underway on L1, the SNX `liquidationRatio` on v2 can be reduced from 160% to 110%. + +`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. + +## 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. + +## Copyright + +Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). From 27f1dfa2b413f684952eca32e5924a82789e5aa5 Mon Sep 17 00:00:00 2001 From: cavalier_eth <91091124+cavalier-eth@users.noreply.github.com> Date: Thu, 25 Jul 2024 23:02:11 +1000 Subject: [PATCH 2/5] Update sccp-2128 --- content/sccp-2128 | 8 ++++---- 1 file changed, 4 insertions(+), 4 deletions(-) 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 From ffbb9597ab1662ce721354d33d2c4d3e9266b556 Mon Sep 17 00:00:00 2001 From: kaleb Date: Thu, 25 Jul 2024 15:20:42 +0200 Subject: [PATCH 3/5] update to sccp --- content/sccp-2128 | 33 --------------------------------- content/sccp/sccp-2128.md | 31 +++++++++++++++++++++++++++++++ 2 files changed, 31 insertions(+), 33 deletions(-) delete mode 100644 content/sccp-2128 create mode 100644 content/sccp/sccp-2128.md diff --git a/content/sccp-2128 b/content/sccp-2128 deleted file mode 100644 index e319d95b4..000000000 --- a/content/sccp-2128 +++ /dev/null @@ -1,33 +0,0 @@ ---- -sccp: 2128 -network: Ethereum -title: Update Liquidation Ratio -author: Cavalier -status: Draft -created: 2024-07-25 -type: Governance ---- - -## Simple Summary - - - -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 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. 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 exclusively by the v3 SNX stakers. The Treasury Council has been migrated to v3, and is well capitalized to absorb any liquidations. - -## Copyright - -Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). diff --git a/content/sccp/sccp-2128.md b/content/sccp/sccp-2128.md new file mode 100644 index 000000000..cb91c7089 --- /dev/null +++ b/content/sccp/sccp-2128.md @@ -0,0 +1,31 @@ +--- +sccp: 2128 +network: Ethereum +title: Update Liquidation Ratio +author: Cavalier, Kaleb +status: Draft +created: 2024-07-25 +type: Governance +--- + +## Simple Summary + + + +This SCCP proposes to decrease the SNX `liquidationRatio` from 160% to 120% on the ethereum network. + +## Abstract + + + +The `liquidationRatio` is the ratio below which SNX stakers staking v2x get liquidated. Since the implementation of [SIP-306](https://sips.synthetix.io/sips/sip-306/) on the ethereum network, accounts that are below that critical ratio, are immediately liquidated with the snx and debt socialized among stakers on v3. The liquidated snx is unlocked and immediately available for distribution. + +## 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](https://creativecommons.org/publicdomain/zero/1.0/). From 46405890ecbd662cff3898d036b611eeebd4127d Mon Sep 17 00:00:00 2001 From: kaleb Date: Thu, 25 Jul 2024 15:21:34 +0200 Subject: [PATCH 4/5] update numbering --- content/sccp/{sccp-2128.md => sccp-343.md} | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) rename content/sccp/{sccp-2128.md => sccp-343.md} (99%) diff --git a/content/sccp/sccp-2128.md b/content/sccp/sccp-343.md similarity index 99% rename from content/sccp/sccp-2128.md rename to content/sccp/sccp-343.md index cb91c7089..9bbaa7b8f 100644 --- a/content/sccp/sccp-2128.md +++ b/content/sccp/sccp-343.md @@ -1,5 +1,5 @@ --- -sccp: 2128 +sccp: 343 network: Ethereum title: Update Liquidation Ratio author: Cavalier, Kaleb From f81f8fa04f369a8f6be653ec800c14b8c93e4d0d Mon Sep 17 00:00:00 2001 From: kaleb Date: Thu, 25 Jul 2024 15:23:21 +0200 Subject: [PATCH 5/5] Update sccp-343.md --- content/sccp/sccp-343.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/content/sccp/sccp-343.md b/content/sccp/sccp-343.md index 9bbaa7b8f..c132a7087 100644 --- a/content/sccp/sccp-343.md +++ b/content/sccp/sccp-343.md @@ -18,7 +18,7 @@ This SCCP proposes to decrease the SNX `liquidationRatio` from 160% to 120% on t -The `liquidationRatio` is the ratio below which SNX stakers staking v2x get liquidated. Since the implementation of [SIP-306](https://sips.synthetix.io/sips/sip-306/) on the ethereum network, accounts that are below that critical ratio, are immediately liquidated with the snx and debt socialized among stakers on v3. The liquidated snx is unlocked and immediately available for distribution. +Since the implementation of [SIP-306](https://sips.synthetix.io/sips/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 liquidated snx is unlocked and immediately available for distribution. ## Motivation