Deploy ETH Collateral sUSD loans onto L2 and allow users to borrow synthetic assets against ETH.
Deploy Multi Collateral ETH loans to Optimism to borrow sUSD. After the Optimism regenesis, ETH is now a "native" currency for L2 which enables the
CollateralETH contract to be deployed which accepts ETH as a collateral.
Initially, the system will support borrowing sUSD against ETH on Optimism L2.
The supply of sUSD on Optimism L2 is not able to meet the demand for sUSD required for traders and future DeFi ecosystem integrations. Without a large influx of SNX onto L2 Optimism, the sUSD in circulation would not meet the demand resulting in the sUSD peg to be above > $1.0 and affecting traders and other protocols integrating with Synthetix.
- Support the sUSD peg by increasing the amount of sUSD in circulation on L2.
- Improve the supply of sUSD for traders and other partner integrations such as LYRA, dHEDGE and Uniswap by allowing sUSD to be minted with ETH collateral.
We can increase the supply of sUSD safely by introducing Ether collateral backed loans along with SNX staking on L2. This will also increase the fees generated via the interests collected from the loans to stakers.
With much lower gas costs for execution on L2 Optimism, we can reduce the minimum collateral and the min c-ratio for ETH collateral loans.
The cost for liquidation keepers to maintain the health of loans would be less so the min ETH collateral can be lower as well and the buffer between liquidation can be reduced.
CollateralETHcontract to L2 OVM
- Ensure the collateral values are properly set
synthsthe synths which can be borrowed against the collateral. (Default:
minCratiothe minimum collateralisation ratio before becoming eligible for liquidation. (Default:
minCollateralthe minimum collateral required to open a loan. (Default:
issueFeeRatethe fee for opening a loan. (Default:
utilisationMultiplierthe factor that will scale the utilisation ratio. (Default:
baseBorrowRatethe base interest rate applied to all borrows. (Default:
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