sccp-2088.md

sccp	network	title	author	status	created	proposal	type
2088	Optimism	Update ETH Wrapper Parameters	Kaleb (@kaleb-keny)	Implemented	2024-03-05	https://snapshot.org/#/snxgov.eth/proposal/0x709f732ae3b0c0eebae2d71671b52e8d7d05d6b693d2c4b993c0bb588f1e84a1	Governance

Simple Summary

This SCCP proposes to update the ETH wrapper parameter on Optimism to the following:

• maxTokenAmount: 2,000
• mintFeeRate: 0 bp
• burnFeeRate: 100 bp

Abstract

• The burnFeeRate is a parameter that determines the fee to be paid in order to release the underlying, when a synth is burned
• The mintFeeRate is the rate that paid for locking up a certain underlying to mint it's respective synth equivalent.
• The maxTokenAmount is the max amount allowed to be used to issue a synth with a underlying specified in the wrapper contract, in this case it's LUSD.

Motivation

The main motivation is to encourage more on-ramp of synth via the ETH wrapper in order to lean on the debt pool skew.

Copyright

Copyright and related rights waived via CC0.