SCCP-2113: Update Dynamic Redeemer Discount Rate - Moderate Decay
| Author | |
|---|---|
| Status | Rejected |
| Type | Governance |
| Network | Ethereum |
| Implementor | TBD |
| Release | TBD |
| Created | 2024-07-05 |
Simple Summary
This SCCP proposes to decrease the Discount Rate (DR) from its current 48% to 35% immediately, and then in 5% increments per month.
Abstract
discountRate as per SIP-2059, is used to compute the value of the debt pool. It also determines the price at which a user can redeem outstanding spot synths, such as sETH and sBTC. Accelerating the DR more quickly deprecates the role of spot synths in preparation for migration to V3.
Motivation
The intentions of SIP-2059 is to lean on the debt pool skew by providing users with an incentive to move their synths into sUSD. However, as was done in SCCP-2110, users may request redemption at parity from synthetix governance, which may choose to do so at its discretion. The latter is implemented by bumping the DR, enacting the redemption at parity and decreasing the DR to the level that offsets an impact on the size of the debt pool. Accelerating
Copyright
Copyright and related rights waived via CC0.