IIP-42: ETH2x-FLI Parameter Update #6

Governance Proposal
1

iip: 42
title: ETH2x-FLI Parameter Update #6
status: Proposed
author: Allan Gulley (@allan.g)
created: May 17, 2021

Simple Summary

Raise the supply cap of the ETH2x-FLI from 400,000 units to 600,000 units.

Abstract

Adjust the following parameters on the ETH2x-FLI:

  1. Raise the supply cap to 600,000 units.

Motivation

The initial ETH2x-FLI launch employed a guarded roll-out to ensure stability because it is a riskier leveraged product. The initial supply cap was at 50,000 units and it has been raised on three separate occasions as the system has been validated:

  • IIP-20: increase supply cap from 50,000 to 100,000 units
  • IIP-23: increase supply cap from 100,000 to 200,000 units
  • IIP-30: increase supply cap from 200,000 to 400,000 units

At time of writing (05/17/21 @ 5:00pm US EST), the total unit supply of ETH2x-FLI is ~392,000, which represents ~98% of the current supply cap. For this reason, we recommend raising the supply cap to 600,000 units.

Poll

Though polling is not required for FLI parameter updates, we would like to use a poll to gauge community sentiment before moving to snapshot voting. This poll will be closed on Thursday, May 20th at 7:00 pm US EST.

FOR

  • Increase the supply cap to 600k

AGAINST

  • Do not increase the supply cap to 600k (leave at 400k)
  • FOR (increase supply cap to 600k)
  • AGAINST (do not increase supply cap to 600k)

0 voters

UPDATE (05.19 @ 12:00pm US EST):

At the request of the engineering team, we have withdrawn this proposal temporarily so that we can review the performance of the relevant smart contracts over the last 48 hours and their responsiveness to adverse market conditions.

This proposal will be revisited and the sentiment poll will be reopened as soon as this review and any resulting actions are complete.

UPDATE (05.19 @ 6:32pm US PST) [Punia]:

This proposal is back on and will continue voting. The “Option to Extend” has been removed since it was not a part of the original proposal.

2 Likes
2

Great work @allan.g , I don’t see many votes against this change.

1 Like
4

+1. I imagine the recent market movements would only increase demand for ETH2x-FLI so it’d be good to raise the caps as soon as possible

5

This IIP is queued for voting here:
https://snapshot.org/#/index/proposal/QmNoXZ43yDiqDz6PjwSP3LgbhcJgtxLdrXkZaoFRK6JSBh

1 Like
6

This parameter update for ETH2x-FLI has been temporarily withdrawn so that the engineering team can review the performance of the relevant smart contracts over the last 48 hours and their responsiveness to adverse market conditions.

5 Likes
7

IIP-42 to increase the ETH2x-FLI supply cap from 400k to 600k is back on. If this IIP passes, the supply cap will be increased on Sunday, 4/23.

Check out the snapshot here: Snapshot

Our engineering team has reviewed how the product behaved during the most recent market crash and feel confident on the robustness of the system to handle more capital.

2 Likes