SCCP-296: Lower Max Liquidation Fee
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2023-04-24 |
Simple Summary
This SCCP proposes to decrease the max liquidation fee to 100 sUSD from 1,000 sUSD.
Abstract
The maxLiquidationFee is the cap on the reward paid to a keeper for triggering a flag. The liquidation fee is variable based on the size of the position liquidated (currently 35 bp) with a floor of 2 sUSD and a cap of 1,000 sUSD.
Motivation
The fee is excessively high, resulting in keepers spamming optimism in order to earn the 1,000 sUSD for transactions that cost less than a dollar to execute. Hence, lowering that fee would balance out the need to continue to incentivize keepers for triggering liquidations and snx stakers earning the bulk of the liquidation reward.
Copyright
Copyright and related rights waived via CC0.