Proposal to lock the burnsynths function for a configurable period after minting to prevent \"frontminting\" a form of oracle fruntrunning.
\nAn SNX staker can mint sUSD continuously until reaching the C-Ratio target. Once reached burning will not be possible until the minimumStakeTime has passed.\nIf a user needs to burn to claim a new function will be available to \"burnToTarget\" to allow undercollateralized accounts to burn to the taret C-Ratio to claim fees.\nIf an SNX staker wants to burn all debt they must wait until the minimumStakeTime has elapsed.
\nThe exploit involves frontrunning a drop in the ETH price by staking SNX and minting sUSD. Once the sETH price does drop, and the Synthetix system's total debt deflates, that staker's debt has deflated too (but not their sUSD balance). The staker then burns enough sUSD to unstake their SNX, leaving them with a small sUSD profit.
\nA wallet has recently started executing this exploit since the launch of fee reclamation. If it goes unresolved, this issue could lead to further debt for SNX stakers. Closing this loophole protects SNX stakers.
\nThis solution has the fewest trade-offs of the available solutions, as it still allows stakers to burn to claim rewards.
\nCopyright and related rights waived via CC0.
"}},"pageContext":{"id":"b454b02d-888d-5940-b8b2-a9eebd3bb4ff","frontmatter__sip":40,"__params":{"frontmatter__sip":"40"}}},"staticQueryHashes":[]}