Allow each synth to have its own maximum supply cap, above which no more of that synth may be minted.
\nThe SIP will add a check on exchanges that will check to see if a given trade will mint synths such that its total supply exceeds the supply cap for that synth (as set by SCCP). If the trade will result in synths being minted above the supply cap, the trade will fail. Otherwise, the trade will proceed as usual.
\nWe have been expanding the total supply of synths and also steadily expanding our offerings of possible synths. This presents a variety of possible attacks and risk factors for the system and for SNX stakers.
\nOne issue of particular concern is the ability for actors to acquire large amounts of synths relative to the total market cap or trading volume of that synth. For example, it would be quite possible for someone to acquire $100m of sREN in 6 minutes, while REN the underlying is an asset with 500m fully diluted valuation and daily trading volumes on CEX of far below $100m. This presents opportunities for manipulators to attack the system by manipulating price of these less liquid synths after establishing a huge position in them.
\nEven without this possibility of manipulation, allowing these massive positions that are far beyond what any reasonable staker could hedge on the open market poses an unacceptable risk to stakers, who are exposed to potentially large swings in debt.
\nTherefore, it is desirable that each synth have a parameter, set by SCCP, that governs how much of that synth may exist at any time. This means that we can more easily regulate the change in the debt pool and, at a minimum, prevent massive positions from being acquired near instantly. While I do propose that all synths have this feature enabled, its likely that most synths can remain at a very large cap.
\nTBD
\nTBD
\nTBD
\nEach synth has its own supply cap, modifiable by SCCP.
\nBroadly speaking, I recommend classifying synths into the following categories:
\nSo some rough suggestions (unless otherwise mentioned, assume iSynth caps if applicable are the same as the sSynth):
\nCopyright and related rights waived via CC0.
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