|Network||Ethereum & Optimism|
Debt migration allows stakers to migrate their SNX collateral and debt position from Ethereum to Optimism without burning sUSD to clear their debt.
This SIP introduces a new function to migrate debt from Ethereum to Optimism. It relies on the fungibility of Synths across both networks to remove the need to burn debt before migrating SNX collateral to optimism. The new function will migrate all vesting entries and staked SNX from Ethereum to Optimism in a single transaction.
Prior to the debt Synthesis it is not possible to migrate a stakers position from Ethereum to Optimism without burning all of their debt first. This makes it difficult for large stakers to source sufficient sUSD liquidity to unwind their entire debt position. This new function will allow for a much faster transition to Optimism staking and will allow all inflation to be transitioned to the new network.
This SIP will allow a staker to migrate their debt position by debiting their debt shares on L1 and minting them on Optimism, it will also transfer all SNX collateral to Optimism in the same transaction.
Requiring stakers to burn all debt before migrating to Optimism puts uneccesary stress on the network, particularly sUSD liquidity. After the deployment of Debt Shares and the Debt Synthesis it is possible to update the debt shares position for each staker directly, this is a much better process for stakers than forcing them to exit the debt pool, thus clearing their debt register position then requiring them to mint on Optimism to reenter the debt pool after migrating.
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