From 0d9406e348887e901898c4d565f67d26c1a184e1 Mon Sep 17 00:00:00 2001
From: cavalier_eth <91091124+cavalier-eth@users.noreply.github.com>
Date: Mon, 5 Aug 2024 15:20:14 +1000
Subject: [PATCH 1/3] Create sccp-346

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 content/sccp/sccp-346 | 31 +++++++++++++++++++++++++++++++
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 create mode 100644 content/sccp/sccp-346

diff --git a/content/sccp/sccp-346 b/content/sccp/sccp-346
new file mode 100644
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+---
+sccp: 346
+network: Ethereum
+title: Update Liquidation Ratio
+author: Cavalier, Kaleb
+status: Draft
+created: 2024-08-05
+type: Governance
+---
+
+## Simple Summary
+
+<!--"If you can't explain it simply, you don't understand it well enough." Provide a simplified and layman-accessible explanation of the SCCP.-->
+
+This SCCP proposes to decrease the SNX `liquidationRatio` from 120% to 105% on the ethereum network.
+
+## Abstract
+
+<!--A short (~200 word) description of the variable change proposed.-->
+
+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 only staker on v3 is the Treasury Council, who is comfortable with the change.
+
+## 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.-->
+
+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 187baf790db340c8f9025a261fceaef52fd55db8 Mon Sep 17 00:00:00 2001
From: kaleb <62237347+kaleb-keny@users.noreply.github.com>
Date: Mon, 5 Aug 2024 11:51:35 +0200
Subject: [PATCH 2/3] Update sccp-346

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 content/sccp/sccp-346 | 2 +-
 1 file changed, 1 insertion(+), 1 deletion(-)

diff --git a/content/sccp/sccp-346 b/content/sccp/sccp-346
index 3756822ca..335820534 100644
--- a/content/sccp/sccp-346
+++ b/content/sccp/sccp-346
@@ -2,7 +2,7 @@
 sccp: 346
 network: Ethereum
 title: Update Liquidation Ratio
-author: Cavalier, Kaleb
+author: Cavalier
 status: Draft
 created: 2024-08-05
 type: Governance

From b8b57e5511d4771e57d1ecdb2cd7155d51a6b68f Mon Sep 17 00:00:00 2001
From: kaleb <62237347+kaleb-keny@users.noreply.github.com>
Date: Mon, 5 Aug 2024 11:52:16 +0200
Subject: [PATCH 3/3] Rename sccp-346 to sccp-346.md

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 content/sccp/{sccp-346 => sccp-346.md} | 0
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diff --git a/content/sccp/sccp-346 b/content/sccp/sccp-346.md
similarity index 100%
rename from content/sccp/sccp-346
rename to content/sccp/sccp-346.md