SCCP 14: Increase Collateralisation Ratio to 800% Source

AuthorGarth Travers
Discussions-ToDiscord
StatusImplemented
Created2020-03-04

Simple Summary

Increase the target Collateralisation Ratio for SNX stakers to 800%.

Abstract

There is currently a surplus of Synths (relative to demand) in the Synthetix ecosystem. Increasing the target Collateralisation Ratio will cause some SNX stakers to purchase Synths off the market to burn before they can claim any more staking rewards.

Motivation

The Synth pegs (both sETH on Uniswap and sUSD on CEX’s) are off-peg. This means demand for Synths is low. There are currently other levers in the works that should contribute to tightening these pegs, but one such lever is the Collateralisation Ratio, which a majority of Discord pollers supported increasing to 800% to contribute to increased demand from SNX stakers looking to burn.

Copyright and related rights waived via CC0.