SCCP-403: Update Liquidation Ratio Schedule
| Author | Kaleb |
|---|---|
| Status | Approved |
| Type | Governance |
| Network | Ethereum & Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2025-04-09 |
Simple Summary
This sccp proposes to increase the liquidation ratio as per the below schedule:
- 11-Apr-2025: 250%
- 18-Apr-2025: 500%
- 21-Apr-2025: High enough to deprecate solo snx staking
Abstract
The liquidation ratio is the ratio at which accounts on v3 ethereum and optimism are liquidated. The SNX and debt are allocated to treasury when a liquidation is enacted.
Motivation
The motivation is to deprecate solo staking in favor of 420 POL staking. Note that solo stakers having a collateralization ratios well above 160% are able to claim back their SNX and debt from Treasury within a 6 months period after the date of their liquidations `(i.e. before 21-Oct-2025). However the accounts' collateralization ratio needs to remain above the 160% during the grace period in order to be eligible. If the ratio dips below 160% during the grace period, the accounts' SNX is considered to be forfeited, as per the standard liquidation rules outlines in SCCP-401. Users who are liquidated are encouraged to open tickets in Synthetix Discord in order to claim back that liquidated SNX.
Copyright
Copyright and related rights waived via CC0.