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. 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 should materialize.
Copyright
Copyright and related rights waived via CC0.