The SIP proposes deprecating classic exchanges (and atomic exchanges) of all non sUSD synths, in favor of a new redeemer contract that redeems users at the Chainlink price multiplied by a discountRate. This discountRate would start at 1 and could decrease gradually according to a pre-approved schedule that can be voted on by governance with an SCCP.
\nAfter this SIP is implemented, users holding synths will only be able to redeem them to sUSD at the Chainlink price multiplied by the specified discount factor.
\nThe legacy spot synths are overutilized relative to their value to stakers; they generate minimal revenue and incur significant hedging costs for stakers. Spot synths in V3 have been redesigned to be more aligned with the interests of stakers. This proposal will immediately begin to reduce the debt pool skew and the costs associated with stakers managing their debt hedging due to changes in the composition of outstanding synths. It also prepares for the migration of debt to V3 later in the year as new products are launched, including the upcoming L1 ETH perp.
\nSuspend existing exchange functionality via SystemStatus.suspendSynthsExchange.
Create a new redeemer contract DynamicSynthRedeemer that allows users to redeem synths for chainlink price * discountRate. The contract adjusts redemption prices based on Chainlink price data at the time of execution (as opposed to SIP-174: Synth Redeemer, which does so at a fixed rate).
Update DebtCache to take the discountRate into account for its issued synth reporting:
function _issuedSynthValues(\n bytes32[] memory currencyKeys,\n uint[] memory rates\n ) internal view returns (uint[] memory values) {\n uint numValues = currencyKeys.length;\n values = new uint[](numValues);\n ISynth[] memory synths = issuer().getSynths(currencyKeys);\n\n for (uint i = 0; i < numValues; i++) {\n address synthAddress = address(synths[i]);\n require(synthAddress != address(0), \"Synth does not exist\");\n uint supply = IERC20(synthAddress).totalSupply();\n uint value = supply.multiplyDecimalRound(rates[i]);\n values[i] = value.multiplyDecimalRound(dynamicSynthRedeemer().discountRate());\n }\n\n return (values);\n }\nFor DynamicSynthRedeemer:
A integration test to cover the dynamic redemptions.
\nSynthRedeemed event with the expected values.The discountRate that allows configuration of the funding rate imposed on holding volatile synths on L1.
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