From 039bbf9d4d9ddb03a0d0496f8ba24630f940cedf Mon Sep 17 00:00:00 2001 From: capitalist42 Date: Sat, 27 Jan 2024 22:57:31 +0900 Subject: [PATCH 1/3] add SIP-0075: Reduce Zero Origination Fee --- tasks/sips/args/sipArgs.ts | 62 ++++++++++++++++++++++++++++++++++++++ 1 file changed, 62 insertions(+) diff --git a/tasks/sips/args/sipArgs.ts b/tasks/sips/args/sipArgs.ts index e257d2b..747c185 100644 --- a/tasks/sips/args/sipArgs.ts +++ b/tasks/sips/args/sipArgs.ts @@ -402,6 +402,67 @@ 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 flor 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 sipArgs = { zeroMyntIntegrationSIP, @@ -412,6 +473,7 @@ const sipArgs = { sip0062, zeroFeesUpdateSip0066, sip0071, + sip0075 }; export default sipArgs; From 5e6faa25c3d17cb13532b92936c43d36e19f5183 Mon Sep 17 00:00:00 2001 From: capitalist42 Date: Tue, 30 Jan 2024 22:55:19 +0900 Subject: [PATCH 2/3] text format --- tasks/sips/args/sipArgs.ts | 19 +++++++++++-------- 1 file changed, 11 insertions(+), 8 deletions(-) diff --git a/tasks/sips/args/sipArgs.ts b/tasks/sips/args/sipArgs.ts index 747c185..ee4deec 100644 --- a/tasks/sips/args/sipArgs.ts +++ b/tasks/sips/args/sipArgs.ts @@ -417,23 +417,23 @@ const sip0075 = async (hre: HardhatRuntimeEnvironment): Promise => const text = ` ## Summary - If approved, this proposal will reduce ZUSD origination fee flor in the Sovryn Zero protocol from 13% to 8%. + If approved, this proposal will reduce ZUSD origination fee flor 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. + 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). + • 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. + 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. @@ -441,15 +441,18 @@ const sip0075 = async (hre: HardhatRuntimeEnvironment): Promise => 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 $SOV rewards. ## Proposed changes + If approved, the origination fee will fluctuate between 8% and 100%. The following change will be made to the Zero Protocol base parameters: - • Updating “BORROWING_FEE_FLOOR” from 13% to 8% by calling \`setBorrowingFeeFloor(uint256)\` + + - Updating "BORROWING_FEE_FLOOR" from 13% to 8% by calling \`setBorrowingFeeFloor(uint256)\` on the \`0xf8B04A36c36d5DbD1a9Fe7B74897c609d6A17aa2\` contract with the encoded data \`0x000000000000000000000000000000000000000000000000011c37937e080000\`. ## License Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). + `; const description: string = `${title}\n${link}\n${summary}\n---\n${text}`; return { From 70d0b47a956486380e813c739061f88058122c24 Mon Sep 17 00:00:00 2001 From: capitalist42 Date: Mon, 5 Feb 2024 15:16:34 +0800 Subject: [PATCH 3/3] fix typo --- tasks/sips/args/sipArgs.ts | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/tasks/sips/args/sipArgs.ts b/tasks/sips/args/sipArgs.ts index ee4deec..7a897fa 100644 --- a/tasks/sips/args/sipArgs.ts +++ b/tasks/sips/args/sipArgs.ts @@ -417,7 +417,7 @@ const sip0075 = async (hre: HardhatRuntimeEnvironment): Promise => const text = ` ## Summary - If approved, this proposal will reduce ZUSD origination fee flor in the Sovryn Zero protocol from 13% to 8%. + If approved, this proposal will reduce ZUSD origination fee floor in the Sovryn Zero protocol from 13% to 8%. ## Background