SCCP-2113: Update Dynamic Redeemer Discount Rate - Slow Decay
| Author | |
|---|---|
| Status | Approved |
| Type | Governance |
| Network | Ethereum |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2024-05-23 |
Simple Summary
This SCCP proposes to decrease the discount rate from 50% to 0% in 2% increments per month, with the first decreased done in June-2024.
Abstract
discountRate as per SIP-2059, is used to compute the value of the debt pool. It also determines the price at which a user can redeem his outstanding spot synths.
Motivation
The intentions of SIP-2059 is to lean on the debt pool skew by providing users with an incentive to move their synths into sUSD. However, as was done in SCCP-2110, users can request redemption at parity from synthetix governance. The latter is implemented by bumping the DR, enacting the redemption at parity and decreasing the DR to the level that offsets an impact on the size of the debt pool. Therefore, the 50% DR and slow decay would permit users over the coming two years to come forward with similar requests to synthetix governance.
Copyright
Copyright and related rights waived via CC0.