SCCP-218: Update ETH Wrapper Parameters
| Author | |
|---|---|
| Status | Rejected |
| Type | Governance |
| Network | Ethereum |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2022-07-19 |
Simple Summary
Implement the following:
- Increase the ETH wrappr
maxTokenAmountfrom 5000 ETH to 7500 ETH - Increase the ETH wrappr
mintFeeRatefrom 5 bp to 50 bp
Abstract
The maxTokenAmount is the maximum amount of ETH that can be wrapped to mint sETH.
The mintFeeRate is the fee levied when minting sETH with ETH.
Motivation
The motivation is the low liquidity of synths, and the debt increase incurred by stakers due to short exposure to ETH. Currently the debt pool is $31.9MM long ETH. Increasing the wrapper capacity by 2k ETH should lead to a decrease in this skew by an equivalent amount, as the sETH is sent over to sUSD, allowing synth liquidity to diffuse accross L1 and L2, and reducing the impact of ETH price movements on stakers debt.
Copyright
Copyright and related rights waived via CC0.