This SCCP proposes to lower the
exchangeFeeRate on sETH synth exchanges with fee reclamation on L1 from 35 bp to 5 bp.
exchangeFeeRate is the fee rate applied on the amount being exchanged via conventional synth exchanges with fee reclamation.
The proposed parameter changes are meant to facilitate arbitrage of the peg on L1, with arbitrages taking place by:
- buying cheap sUSD on L2
- bridging it to L1
- swapping to sETH at 5 bp
- unwrapping it to ETH
- Swapping the ETH to USDC
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