This SCCP proposes to implement the following:
Decrease cap on ETH Wrappr to 75k ETH from 175k ETH
Increase cap on the LUSD Wrappr to 50 million sUSD
Decrease LUSD minting fee to 0 bp
Decrease ETH Wrappr Burning Fee to 0 bp
This SCCP parameterizes the wrappr contracts as to allow the process of unwinding away some of the ETH locked in the ETH Wrappr, which resulted in a negative skew on the debt pool on L1, and enable external collateral cross-asset swaps on synthetix with the help of wrapprs.
Once these parameters are set, traders will be able to trade from ETH to LUSD on aggregators with the following route:
- Trade stables into LUSD (on 1inch)
- Trade LUSD to sUSD (with LUSD wrappr at 0 fee)
- Trade sUSD to sETH (with SNX Atomic contract at 25 bp fee)
- Trade sETH to ETH (unwrapping ETH at 0 fee)
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