SCCP 59: Reduce the target Collateralisation Ratio for SNX stakers to 500% Source

AuthorAkin Sawyerr
Discussions-Tohttps://research.synthetix.io/t/sccp-58-reduce-target-collateralisation-ratio-to-500/225
StatusProposed
Created2020-11-11

Simple Summary

Decrease the target Collateralisation Ratio for SNX stakers to 500%

Abstract

The system is much more stable with the first successful set of liquidations executing without a hitch. Its a good time to further lower C-Ratios to increase the opportunity to mint more debt and increase returns for synth holders and traders

Motivation

  • Liquidation process in place and working
  • Network and Active C-Ratio are a very health 783% and 635% respectfully, even with recent drop in SNX price
  • Increased liquidity will support increased use of the exchange(s) and transaction fees
  • Capital Efficiency
  • Increased demand for Synths will drive more integrations with other DeFi platforms

Copyright and related rights waived via CC0.