Simple Summary

This SCCP proposes to increase the cap on the wrappr contract from 5k ETH to 15k wETH.

Abstract

With the contract currently being saturated with eth, this sccp proposes to increase the cap by 10k wETH.

Motivation

The cap increase is to allow for arbers to take advantage of the wrappr contract in order to mint sETH with ETH. However, the cap is being increased in incremental steps because of the following reasons:

  • Minimizing peg volatility, as a large influx of synths will result in shocks of synth supply, which might cause more harm than good.

  • Given that it is a new contract, having a gradually increasing cap in incremental steps adds another level of protection.

That said, we expect the cap to be raised significantly over the coming weeks and fees lowered to the minimum of 5 bp in order to ensure that arbers take advantage of the contract and fix the peg with the least amount of friction possible in the smallest delay possible.

Copyright and related rights waived via CC0.