Simple Summary

This SCCP proposes to increase the cap on the wrappr contract to 50k ETH from 15k ETH.

Abstract

Increasing the cap to 50k ETH will allow arbitragers to futher tighten the sETH price to a premium of at most 1%.

Motivation

The cap increase will allow arbers to take advantage of the wrappr contract in order to mint sETH with ETH and swap the resulting sETH on curve for ETH. This helps align the pegs on different curve pools as well, and reinforces the pegs across the synth eco-system.

Copyright and related rights waived via CC0.