Simple Summary

This SCCP proposes to decrease the SNX reward paid to LP stakers on Curve to 6k SNX from 8k SNX per week.

Abstract

Given the relative stability sUSD peg and the availability of an on-ramp with deep frictionless liquidity (wrappr), snx inflation paid to the sUSD pool on curve can be decreased with no consequence on the state of the peg.

Motivation

SNX incentives paid to Curve LP providers can be significantly decreased because of the following reasons:

  • Trading fees and CRV Governance inflation are more than enough to incentivize stakers to continue provide to curve.
  • Users can now unlock an unlimited supply of synths with the least amount of friction possible all the while reducing the skew on minters with wrappr.
  • The sUSD peg will remain, despite the small decrease in snx inflationary rewards, due to the arbitrage possible with the ETH locked in the wrappr contract.

However, it is worth mentioning, given the close relationship between the Synthetix and Curve protocols, this sccp proposes to only cut the rewards marginally.

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