diff --git a/content/sccp/sccp-355.md b/content/sccp/sccp-355.md index b18f9b231..05b3ffa27 100644 --- a/content/sccp/sccp-355.md +++ b/content/sccp/sccp-355.md @@ -12,15 +12,13 @@ author: Kaleb This SCCP proposes to increase the leverage on Spot Synths to 10. - # Abstract -The `collateralLeverage` is the number that helps determine market capacity - +The `collateralLeverage` is the number that constrains the ability of liquidity providers to withdraw assets, depending on the size of the open interest of spot market synths. # Motivation -The parameters were originally configured to be at 1, but given that synths are only used for wrapping underlying and for margining to perps markets. the leverage number can be relaxed at the capacity is handled by the `oiCreditCapacity` multiplier number on the `PerpsMarketProxy`. +The parameters were originally configured to be at `1` on all spot markets (i.e. sUSDC, swSOL, stBTC, sETH). Given that these synths would only be either stable coins backed or would be constrained to be only wrappable, the leverage number can be relaxed as the credit capacity would be catered for on the perp market by configuring the `lockedOiRatio`. # Copyright