SCCP-275: Update Wrapper Parameters

Author
StatusImplemented
TypeGovernance
NetworkEthereum & Optimism
ImplementorTBD
ReleaseTBD
ProposalLoading status...
Created2023-01-26

Simple Summary

This SCCP proposes to implement the following:

  • Increase the WETH wrapper burnFeeRate to 50 bp from 10 bp
  • Lower the the DAI wrapper burnFeeRate to 5 bp from 10 bp

Abstract

The burnFeeRate is a parameter that determines the fee to be paid in order to release the underlying, when a synth is burned.

Motivation

The main motivation is to lean against the increasing ETH skew in the debt pool, by increasing the chance that arbitrage bots would reverse sUSD to sETH trade flow imbalance in the curve pools with synth exchanges, rather than using the ETH wrapper.

Copyright

Copyright and related rights waived via CC0.