SCCP 2: Change C Ratio to 750% Source

Author Kain Warwick https://discord.gg/CDTvjHY Implemented 2019-06-17 SIP-2

Simple Summary

The current C-ratio of 500% has resulted in an oversupply of Synths due to the resent rise in price of the SNX token. In order to reduce the supply of Synths it is proposed that the c ratio be raised to 750%.

Abstract

The c ratio limits the issuance of Synths, based on the current price of SNX there is ~$6m USD worth of issuable synths. This has lead to a supply glut and the sUSD peg deviating from$1 by up to 10%. Raising the C Ratio will force users who have sold sUSD below the peg to purchase it back off market in order to claim fees. This should help to restore the peg will demand for Synths grows to meet supply.

Motivation

The propose of this change is to reduce supply of Synths and restore the peg, should the increase in C Ratio from 500% to 750% prove effective but insufficient there may be a need to increase the C Ratio further after an observation period. The C Ratio is the strongest lever available to reduce the outstanding supply, and is preferred to other methods like non-discretionary issuance as it is likely to have the least impact on sX trading volume.

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