SIP-2059: Legacy Spot Synth Migration
| Author | |
|---|---|
| Status | Draft |
| Type | Governance |
| Network | Ethereum |
| Implementor | TBD |
| Release | TBD |
Simple Summary
The sip proposes to deprecate classic exchanges (and atomic exchanges) of sETHBTC, sETH and sBTC with a new redeemer contract that redeems users at the chainlink price multiplied by a discountRate. This discountRate would start at 1 and decrease gradually as per a pre-approved schedule that can be voted on by governance with an SCCP.
Abstract
After this sip is implemented, users holding sETH, sBTC or sETHBTC can only redeem their synths to sUSD at the chainlink price multiplied by the specified discount factor.
Motivation
The legacy spot synths are overutilsed relative to their value to stakers, they produce minimal revenue and incur significant hedging costs for stakers. Spot synths in V3 have been redesigned to be more aligned with the interests of stakers, this proposal will immediately begin to reduce the debt pool skew, and the costs associated with stakers managing their debt hedging due to changes in the composition of outstanding synths. It also prepares for the migration of debt to V3 later in the year as new products are launched, including the upcoming L1 ETH perp.
Specification
Pending.
Test Cases
Pending
Configurable Values (Via SCCP)
The discountFactor that allows configuration of the funding rate imposed on holding volatile synths on L1.
Copyright
Copyright and related rights waived via CC0.