SCCP-2035: Expand LUSD Wrapper

Simple Summary

This SCCP proposes the following parameters for the LUSD wrapper on Optimism:

• Set the burnFeeRateto 5%.
• Set the mintFeeRate to 5bp,
• Set the maxTokenAmount to $10m.

Abstract

The maxTokenAmount is the max amount allowed to be used to issue a synth with a underlying specified in the wrapper contract, in this case it's LUSD. The burnFeeRate determines the fee that is paid when burning sUSD to release the wrapped underlying. The mintFeerate determines the fee that is paid when minting sUSD by wrapping the underlying.

Motivation

Although the LUSD wrapper was originally unwrapped due to persistent peg issues and to prepare for the transition to v3, some large traders have expressed interest in using our perps product and suggested that they are unable to onboard due to slippage incurred on sUSD. With LUSD more tightly pegged in recent months and still several months likely until the launch of Perps v3 to mainnet, a wrapper expansion would provide an alternative route for these traders to try Synthetix Perps. $10m capacity should be sufficient for at least one large trader to onboard using LUSD and could be expanded again if capacity filled quickly.

Copyright

Copyright and related rights waived via CC0.