|Network||Ethereum & Optimism|
The active network ratio is currently low enough that the introduction of SIP-148 poses potential risks to the network if a majority of holders elect to utilise self liquidation rather than repaying their debt. This SCCP adjusts the initial paramters and the C-ratio to reduce the risk to the network upon the introduction of SIP-148. By reducing the delta between the current active ratio and the target ratio less collateral and debt will need to be transferred between stakers. This will allow for a more orderly distribution of debt within the network once SIP-148 is implemented.
liquidationEscrowDuration: 1 year
liquidationDelay: 12 hours
flagReward (L1): 10 SNX
flagReward (L2): 1 SNX
liquidateReward (L1): 20 SNX
liquidateReward (L2): 2 SNX
Lowering the c-ratio will reduce the impact of self-liquidation once SIP-148 is introduced. Once the active ratio approaches 300% again the c-ratio should be incrementally moved up towards 400%
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