SCCP-2124: Update discountRate to enable L1 SNX migration to V3
| Author | |
|---|---|
| Status | Deprecated |
| Type | Governance |
| Network | Ethereum |
| Implementor | TBD |
| Release | TBD |
| Created | 2024-07-08 |
Simple Summary
This SCCP proposes to decrease the discountRate from its current 48% to 0%, so that volatile synths on L1 are deprecated, and the L1 SNX migration to V3 can commence.
Abstract
To complete the preparation for migration of SNX on L1 to V3, this proposal reduces the discountRate from 48% to 0%, as outlined in SIP-2059. This change is essential for the deprecation of L1 volatile synths, including sETH and sBTC. It is important to note that the discountRate adjustment does not impact the value of sUSD or any synths on L2.
Motivation
The V3 migration is now ready for release on L1, following the three-month notice period since the synth deprecation announcement. Deprecating volatile synths on L1 is a crucial step in this migration process, imeplemented by SIP-2059 that incentivized users to convert volatile synths into sUSD. As with SCCP-2110, users may request redemption from the Treasury Council within a reasonable timeframe, which the Council may grant at its discretion.
Copyright
Copyright and related rights waived via CC0.