SCCP-151: Wrappr Parameter Changes (L1)

Author
StatusApproved
TypeGovernance
ImplementorTBD
ReleaseTBD
ProposalLoading status...
Discussions-Tohttps://discord.gg/EWmYsH7X
Created2021-11-22

Simple Summary

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

Abstract

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.

Motivation

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)

Copyright and related rights waived via CC0.