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Simple Summary

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This SCCP proposes to update the following parameters on the LUSD wrappr on Ethereum:

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Abstract

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The LUSD maxTokenAmount is the maximum amount of sUSD that can be minted by the LUSD wrappr, the burnFeeRate specifies the fee levied in order to release the LUSD from the wrappr.

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Motivation

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Given recent events where OlympusDAO is rebalancing the LUSD CRV pool, we should expect the LUSD supply to increase in the coming weeks. In order to take advantage of this, and ramp up the available supply of sUSD on Ethereum as much as possible, this SCCP proposes to increase the maxTokenAmount to 100m sUSD and raise the burnFeeRate to 5%.\nThis will allow up to gradually unwind the LUSD wrappr on L2, in favor of a wrappr on L1 which doesn't hamper the liquidation process of liquity. As a positive side-effect, the increase in sUSD supply, will help incentivize trades from sUSD to sETH, which helps lower the negative ETH skew on L1.

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Copyright

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Copyright and related rights waived via CC0.

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