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Create sccp-2132.md #2058

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14 changes: 6 additions & 8 deletions content/sccp/sccp-2122.md → content/sccp/sccp-2132.md
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---
sccp: 2122
sccp: 2132
network: Ethereum & Optimism
title: Reduce target staking ratio to 300%
title: Reduce target staking ratio to 250%
author: Cavalier (@cavalier)
status: Implemented
proposal: >-
https://snapshot.org/#/snxgov.eth/proposal/0xa4702dc982b92d1bf72fe55e8b2bff34ab3c4f0bcbfe53fd9a9b7dff1bc34465
status: Draft
created: 2024-07-05
type: Governance
---
Expand All @@ -16,19 +14,19 @@ type: Governance

<!--"If you can't explain it simply, you don't understand it well enough." Provide a simplified and layman-accessible explanation of the SCCP.-->

Lower the target c-ratio to 300%
Lower the target c-ratio to 250%

## Abstract

<!--A short (~200 word) description of the variable change proposed.-->

This SCCP changes the target c-ratio from 500% to 300%, and reduces the cost to recover a flagged account from liquidation by up to 31%.
This SCCP changes the target c-ratio from 500% to 250%

## Motivation

<!--The motivation is critical for SCCPs that want to update variables within Synthetix. It should clearly explain why the existing variable is not incentive aligned. SCCP submissions without sufficient motivation may be rejected outright.-->

The target c-ratio was increased to 500% by https://sips.synthetix.io/sccp/sccp-285. With the SNX price below $2, a c-ratio of 500% puts undue pressure on stakers, and inhibits their ability to burn back to target to remove a liquidation flag. This SCCP reduces the target c-ratio back to 300% where it should remain until price volatility has decreased, and the price of SNX is above $3 for at least several weeks. Stability of the c-ratio is critical for stakers to make informed decisions about their staking strategy. This SCCP should provide confidence to stakers that the ratio will remain at 300% until SNX recovers and price volatility declines.
With the SNX price below $2, a c-ratio of 500% puts undue pressure on stakers, and inhibits their ability to burn back to target to remove a liquidation flag. This SCCP reduces the target c-ratio back to 250% where it should remain until price volatility has decreased, and the price of SNX is above $3 for at least several weeks. Stability of the c-ratio is critical for stakers to make informed decisions about their staking strategy. This SCCP should provide confidence to stakers that the ratio will remain at 250% until SNX recovers and price volatility declines.

## Copyright

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