SCCP 19: Cancel ArbRewarder's SNX Rewards Source

AuthorClinton Ennis
Discussions-Tohttps://discord.gg/kPPKsPb
StatusImplemented
Created2020-04-30

Simple Summary

Cancel the ArbRewarder’s current 64K distribution of the weekly Inflationary Supply.

Abstract

This configuration change proposes to delete the ArbRewarder entry from the RewardsDistribution contract. This reduction will increase the amount sent to the Staking Rewards contract distributed weekly to SNX stakers.

Motivation

The ArbRewarder’s purpose was to fix the sETH/ETH uniswap pools peg. Since then a new sUSD curve pool has been created to create a stable synth liquidity pool that keeps the stakers debt pool more netural.

Since the ArbRewarder was found to be manipulated it was paused then deprecated, but it has now acumulated 1M SNX tokens which will be used to help maintain the peg in the future. The SNX will be withdrawn to the Synthetix DAO and used for the eSNX mechanism to build up an emergency ETH fund to defend the peg against future deviations.

Copyright and related rights waived via CC0.