SCCP-2122: Reduce target staking ratio to 300%
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Ethereum & Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2024-07-05 |
Simple Summary
Lower the target c-ratio to 300%
Abstract
This SCCP changes the target c-ratio from 500% to 300%, and reduces the cost to recover a flagged account from liquidation by up to 31%.
Motivation
The target c-ratio was increased to 500% by https://sips.synthetix.io/sccp/sccp-285. With the SNX price below $2, a c-ratio of 500% puts undue pressure on stakers, and inhibits their ability to burn back to target to remove a liquidation flag. This SCCP reduces the target c-ratio back to 300% where it should remain until price volatility has decreased, and the price of SNX is above $3 for at least several weeks. Stability of the c-ratio is critical for stakers to make informed decisions about their staking strategy. This SCCP should provide confidence to stakers that the ratio will remain at 300% until SNX recovers and price volatility declines.
Copyright
Copyright and related rights waived via CC0.