SCCP-2126: Increase C-rAtio to 300%
| Author | |
|---|---|
| Status | Draft |
| Type | Governance |
| Network | Ethereum & Optimism |
| Implementor | TBD |
| Release | TBD |
| Created | 2024-07-15 |
Simple Summary
This SCCP proposes to increase the min collateralization ratio back to 500% (or 20% in issuanceRatio terms).
Abstract
The issuance ratio is the ratio that determines the maximum amount of sUSD that can be minted for a staked amount of snx collateral.
Motivation
The min c-ratio was recently lowered via an emergency decision as per SCCP-2122. The author of this sccp continues to question the effectiveness of that SCCP in safeguarding the system, especially during times of snx price pressure, given the moral hazard it insinuates in the behavior of stakers with significant debt. This SCCP proposes to undo SCCP-2122 by setting the min cratio back to previous levels, given that the risks to the stability of the protocol are asymmetrically more pronounced if a price recovery materializes.
Copyright
Copyright and related rights waived via CC0.