diff --git a/tasks/sips/args/sipArgs.ts b/tasks/sips/args/sipArgs.ts index 2c1dbbc..a5d04ae 100644 --- a/tasks/sips/args/sipArgs.ts +++ b/tasks/sips/args/sipArgs.ts @@ -402,6 +402,71 @@ const sip0071 = async (hre: HardhatRuntimeEnvironment): Promise => }; }; +const sip0075 = async (hre: HardhatRuntimeEnvironment): Promise => { + const { ethers, deployments } = hre; + + const zeroBaseParamsContract = await deployments.get("LiquityBaseParams"); + const newBorrowingFeeFloor = ethers.parseEther("0.08"); + const encodedNewBorrowingFeeFloor = ethers.AbiCoder.defaultAbiCoder().encode( + ["uint256"], + [newBorrowingFeeFloor] + ); + const title = "SIP-0075: Reduce Zero Origination Fee"; + const link = "https://forum.sovryn.com/t/sip-0075-reduce-zero-origination-fee"; + const summary = "Reduce Zero Origination Fee Floor to 8%"; + const text = ` + ## Summary + + If approved, this proposal will reduce ZUSD origination fee floor in the Sovryn Zero protocol from 13% to 8%. + + ## Background + + Six months ago, the origination fee floor of Zero Protocol was raised to 99% with SIP-0066. + Essentially, Bitocracy paused the minting of ZUSD by setting extremely high fees to maintain the DLLR peg. + Two months ago, Zero was "reopened" by setting the origination fee to 13% with SIP-0071. This fee was deliberately set quite high in order to cautiously ramp up the system again and achieve the assumed balance between supply and demand for $DLLR. + + Since then several key observations were made: + • The total supply of ZUSD decreased from approximately 6.69 million (start SIP-0066) to 4.58 million (start SIP-0071) to 3.85 million (now). + • Numbers of LoC’s declined from 150 (start SIP-0066) to 88 (start SIP-0071) to 83 (now). + • The total collateral ratio increased from around 372% (SIP-0066) to 530% (SIP-0071) to 604% (now). + • From SIP-0066 to SIP-0071 (8/23-12/23), Zero fee revenue was 15k USD. Since SIP-0071 (01/24) (total Zero fee revenue is 34k USD). + + ## Motivation + + Despite reopening Zero, we can still see a decline in the metrics shown above. + Large parts of the excess ZUSD supply has been removed. + The current 10% interest rate of DLLR lending pool also indicates strong demand. + Therefore, we believe it is a good time to make Zero more accessible and to increase protocol revenue. + Individual users should make sure they understand the system and specifically, redemptions. + If significantly more redemptions occur than expected, Sovryn can also use the increased revenue as a safety mechanism to incentivize the holding of $DLLR via $SOV rewards. + + ## Proposed changes + + If approved, the origination fee will fluctuate between 8% and 100%. + The following change will be made to the Zero Protocol base parameters: + + - Updating "BORROWING_FEE_FLOOR" from 13% to 8% by calling \`setBorrowingFeeFloor(uint256)\` + on the \`0xf8B04A36c36d5DbD1a9Fe7B74897c609d6A17aa2\` contract + with the encoded data \`0x000000000000000000000000000000000000000000000000011c37937e080000\`. + + ## License + + Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). + + `; + const description: string = `${title}\n${link}\n${summary}\n---\n${text}`; + return { + args: { + targets: [zeroBaseParamsContract.address], + values: [0], + signatures: ["setBorrowingFeeFloor(uint256)"], + data: [encodedNewBorrowingFeeFloor], + description: description, + }, + governor: "GovernorOwner", + }; +}; + const sipSOV3564 = async (hre: HardhatRuntimeEnvironment): Promise => { const { ethers, @@ -474,7 +539,6 @@ const sipSOV3564 = async (hre: HardhatRuntimeEnvironment): Promise return args; }; - const sipArgs = { zeroMyntIntegrationSIP, zeroFeesUpdate, @@ -484,6 +548,7 @@ const sipArgs = { sip0062, zeroFeesUpdateSip0066, sip0071, + sip0075, sipSOV3564, };