{"componentChunkName":"component---src-pages-sccp-sccp-markdown-remark-frontmatter-sccp-tsx","path":"/sccp/sccp-296/","result":{"data":{"markdownRemark":{"fileAbsolutePath":"/vercel/path0/content/sccp/sccp-296.md","frontmatter":{"sip":null,"sccp":296,"title":"Lower Max Liquidation Fee","network":"Optimism","author":"Kaleb (@kaleb-keny)","type":"Governance","proposal":"https://snapshot.org/#/snxgov.eth/proposal/0x174375e209eb511990d2d727ae7ebdb48935292f864f6c3071a04dba953808ed","implementor":null,"release":null,"created":"2023-04-24T00:00:00.000Z","updated":null,"status":"Implemented"},"html":"

Simple Summary

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This SCCP proposes to decrease the max liquidation fee to 100 sUSD from 1,000 sUSD.

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Abstract

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The maxLiquidationFee is the cap on the reward paid to a keeper for triggering a flag. The liquidation fee is variable based on the size of the position liquidated (currently 35 bp) with a floor of 2 sUSD and a cap of 1,000 sUSD.

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Motivation

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The fee is excessively high, resulting in keepers spamming optimism in order to earn the 1,000 sUSD for transactions that cost less than a dollar to execute. Hence, lowering that fee would balance out the need to continue to incentivize keepers for triggering liquidations and snx stakers earning the bulk of the liquidation reward.

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Copyright

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Copyright and related rights waived via CC0.

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