SCCP-199: Lower C-Ratio and adjust parameters for SIP-148
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Ethereum & Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2022-05-13 |
Simple Summary
The active network ratio is currently low enough that the introduction of SIP-148 poses potential risks to the network if a majority of holders elect to utilise self liquidation rather than repaying their debt. This SCCP adjusts the initial paramters and the C-ratio to reduce the risk to the network upon the introduction of SIP-148. By reducing the delta between the current active ratio and the target ratio less collateral and debt will need to be transferred between stakers. This will allow for a more orderly distribution of debt within the network once SIP-148 is implemented.
Abstract
collateralisationRatio: 300%
liquidationEscrowDuration: 1 year
liquidationDelay: 12 hours
liquidationRatio: 150%
liquidationPenalty: 30%
selfLiquidationPenalty: 20%
flagReward (L1): 10 SNX
flagReward (L2): 1 SNX
liquidateReward (L1): 20 SNX
liquidateReward (L2): 2 SNX
Motivation
Lowering the c-ratio will reduce the impact of self-liquidation once SIP-148 is introduced. Once the active ratio approaches 300% again the c-ratio should be incrementally moved up towards 400%
Copyright
Copyright and related rights waived via CC0.