SCCP-205: Raising the target staking ratio to 400%

Author
kaleb
StatusDraft
TypeGovernance
NetworkEthereum & Optimism
ImplementorTBD
ReleaseTBD
Created2022-06-20

Simple Summary

Increase the target staking ratio to 400% for snx stakers on ethereum and optimism.

Abstract

The target staking ratio, is the minimum collateralization ratio required for stakers to claim rewards. It also represents the maximum amount of debt a staker can inccur when minting sUSD.

Motivation

The main motivation is the recent snx price action which is accompanied by the increase in snx price volatility. In order to protect the system from potentially significant liquidation when stakers mint max, a higher minimum staking ratio is needed. Over the long run, the target staking ratio should be stable as the snx price stabalizes at around a certain equilibrium market price.

Copyright and related rights waived via CC0.