SCCP-199: Lower C-Ratio and adjust parameters for SIP-148

Author
StatusDraft
TypeGovernance
NetworkEthereum & Optimism
ImplementorTBD
ReleaseTBD
Created2022-05-13

Simple Summary

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.

Abstract

collateralisationRatio: 300%

liquidationEscrowDuration: 1 year

liquidationDelay: 12 hours

liquidationRatio: 150%

liquidationPenalty: 30%

selfLiquidationRatio: 250%

selfLiquidationPenalty: 20%

flagReward (L1): 10 SNX

flagReward (L2): 1 SNX

liquidateReward (L1): 20 SNX

liquidateReward (L2): 2 SNX

Motivation

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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