SIP-330: Minimum collateral capacity view function and event

content/sips/sip-330.md

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+---
+sip: 330
+title: Minimum credit capacity view function and event
+network: Ethereum & Optimism
+status: Draft
+type: Governance
+author: Noisekit
+implementor: TBD
+created: 2023-06-28
+---
+
+## Simple Summary
+
+This proposal suggests the addition of a view function that provides the minimum credit capacity of a market, required to maintain market liquidity, and an event that is emitted when capacity changes.
+
+## Abstract
+
+A `getMinimumCreditCapacity(uint128 marketId)` function would return the minimum collateral needed for a given market to avoid getting locked due to insufficient collateral. In addition, a `MinimumCreditCapacityChanged(uint128 marketId, uint128 oldCreditCapacity, uint128 newCreditCapacity)` event would be emitted whenever the minimum collateral capacity changes.
+
+## Motivation
+
+The proposed additions will improve the user experience on the frontend by allowing users to understand how much collateral they can withdraw without causing a transaction revert due to a market getting into a locked collateral state.
+
+For example, if a user wanted to decrease delegated collateral amount, the application could call `getMinimumCreditCapacity` to calculate the maximum amount the user could withdraw without causing a revert (losing user's money for gas fees)
+
+In addition, the event would enable the creation of a historical data chart or dashboard to track changes in market liquidity requirements over time.
+
+## Specification
+
+### Overview
+
+These additions would use existing data structures in the Synthetix V3 core system and should not introduce substantial risk to the system.
+
+### Rationale
+
+Providing visibility into minimum collateral requirements and changes to them helps users make informed decisions about their participation in the Synthetix Protocol.
+
+### Technical Specification
+
+The `getMinimumCreditCapacity` function could be implemented as follows:
+
+```solidity
+    function getMinimumCreditCapacity(
+        uint128 marketId
+    )
+        external
+        view
+        returns (uint128 minCreditCapacity)
+    {
+        // Implementation to calculate and return the minimum collateral requirement
+    }
+```
+
+The `MinimumCreditCapacityChanged` event could be emitted as follows:
+
+```solidity
+    event MinimumCreditCapacityChanged(
+        uint128 indexed marketId,
+        uint128 oldCreditCapacity,
+        uint128 newCreditCapacity
+    );
+    
+    // This could be emitted wherever the minimum collateral requirement for a market changes in the system
+```
+
+## Test Case
+Applications could call the `getMinimumCreditCapacity` function to display the minimum collateral needed to maintain liquidity for a given market.
+
+Application could listen for the `MinimumCreditCapacityChanged` event being emitted when collateral delegation changes for a given market or market configuration changes.
+
+## Configurable Values (Via SCCP)
+N/A
+
+## Copyright
+Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).