Simple Summary

Decrease the target Collateralisation Ratio for SNX stakers to 450%.

Abstract

Given the state of the peg, this sccp proposes to decrease the target collateralization ratio of SNX stakers to 450% from 500% currently.

Motivation

The peg is increasingly pressured as can be seen here, this is mostly due to the following reasons:

  • The decrease in the capatlalization of synthetix due to the market downtrend.
  • The on-going liquidations that are resulting in further snx price pressure and peg premiums.

This SCCP proposes to provide minters who are close to liquidation some breathing room by allowing them to acquire synths more cheaply and having them need to burn less sUSD in order to start claiming again. That said, more longer-term solutions are being evaluated whether by putting in place structures for liquidations or having stable backed synths (stable-wrapper).

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