SCCP-206: Update LUSD Wrapper Parameters
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2022-07-04 |
Simple Summary
Implement the following:
- Increase the LUSD
BurnFeeRatefrom 0% to 2%
Abstract
The burnFeeRate is the fee paid to release the locked token by burning synth equivalent.
Motivation
The main motivation is the recent premium seen on the sUSD peg, increasing the LUSD burnFeeRate will reduce the amount of sUSD that is being burned in order to release the locked LUSD. the burnFeeRate was originally set to zero, as to encourage arbitrages and sending the LUSD back to L1 where it's needed for liquidations. Originally 50m$ worth of LUSD was locked in the LUSD wrappr making up over 40% of all the LUSD ever minted, that amount has steadily decreased in the last few weeks as can be seen here.
Copyright
Copyright and related rights waived via CC0.