This SCCP proposes to update the synth loan parameters as follows::
\nissueFeeRate to 1% from nearly 0%baseBorrowRate to 30% per year from 1 bp (on ethereum) and 25 bp on optimismBelow is a description of the parameter changes proposed in the SCCP:
\nissueFeeRate is the rate charged on drawing down on existing loansbaseBorrowRate is the interest rate charged on existing loans, it would be configured under loan settings to 9506629384 being the rate per second with 18 decimal point precisionDespite new loans having been disabled for over a year now, users have still not repaid their existing loans. The proposed parameters changes aims at aligning synthetix's synth loan interest rate with those seen in other lending/borrowing providers and discourage new loans from being drawn out in order to alleviate the pressure on the peg
\nThe current list of loans and high level data can be found under here\nThe issueFeeRate would be raised immediately following the governance sign-off, but the baseBorrowRate would only be raised on the 1st of March giving ample time for borrowers to repay existing loans without causing undue peg volatility and avoid the funding rate increase.\nNote that the increase in funding rates would affect all borrowers, whether borrowing sETH against ETH or sUSD against ETH.\nIt should be mentioned that should borrowers become under-collateralized because of the interest rates increase they would be liquidated by liquidators that repay settle their borrowings.
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