SCCP-2095: Deprecate V2 Legacy Loans / Wrappers

Author
StatusApproved
TypeGovernance
NetworkEthereum
ImplementorTBD
ReleaseTBD
ProposalLoading status...
Created2024-03-20

Simple Summary

This SCCP proposes to deprecate loans and wrappers on the ethereum network.

Abstract

Deprecation would take place by setting up a module that would increase the minCratio to a level that leads to the loans being liquidated, executing the liquidation and restoring minCratio back to previous levels after the transaction is complete. The additional ETH obtained from executing this transaction would be sent to the Treasury Council until the time when users claim those funds.

ETH backed loans, ERC backed loans, shorts and the ETH Legacy Wrapper would then be removed from the calculation of the debt pool and deprecated.

Motivation

The proposed changes in this SCCP is part of a suite of pre-requisite changes done, in order to facilitate migration of spot synths on L1 as specified in SIP-2059 and unwinding of the debt pool skew.

Copyright

Copyright and related rights waived via CC0.