SCCP-355: Update Leverage on Spot Synths
| Author | Kaleb |
|---|---|
| Status | Draft |
| Type | Governance |
| Network | Arbitrum |
| Implementor | TBD |
| Release | TBD |
| Created | 2024-10-03 |
Simple Summary
This SCCP proposes to increase the leverage on Spot Synths to 10.
Abstract
The collateralLeverage is the number that constrains the ability of liquidity providers to withdraw assets, depending on the size of the open interest of spot market synths.
Motivation
The parameters were originally configured to be at 1 on all spot markets (i.e. sUSDC, swSOL, stBTC, sETH). Given that these synths would only be either stable coins backed or would be constrained to be only wrappable, the leverage number can be relaxed as the credit capacity would be catered for on the perp market by configuring the lockedOiRatio.
Copyright
Copyright and related rights waived via CC0.