From fd7b2c6f545fbfaa264609aadd6e044aa5e67cc8 Mon Sep 17 00:00:00 2001
From: MattLosquadro <96675101+MattLosquadro@users.noreply.github.com>
Date: Tue, 11 Jun 2024 12:59:10 -0400
Subject: [PATCH] Create sip-392.md

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+---
+sip: 392
+title: Support Ethena USDe as LP & Perps margin collateral
+network: Arbitrum
+status: Draft
+type: Governance
+author:  Matt, DSacks
+---
+## Simple Summary
+
+This SIP proposes to add Ethena's USDe as LP & perps margin collateral to Synthetix V3 on Arbitrum.
+
+Additionally, this SIP proposes to add Ethena USDe as perps margin collateral to Synthetix V3 on Arbitrum.
+
+## Abstract
+
+Add USDe as a supported collateral type for Arbitrum V3 deployment with minting at 125% C-ratio and a maximum LP cap of $25M.
+
+Also support 25m USDe in wrapper capacity to allow users to exchange USDe  synthetic USDe. Synthetic USDe can then be swapped to the synthetix arbitrum stablecoin at the pyth oracle price.
+
+Utilizing a wrapper is a temporary measure to support USDe as perps margin before launching multi collateral on perps v3.
+
+## Motivation
+
+Ethena imports basis yield from centralized exchanges by holding ETH and LST's with offsetting short positions in ETH perpetual futures market, with the bulk of the yield distributed to sUSDe holders (currently earning ~30%+ APR so far this year). Yield bearing collateral can drastically improve the capital efficiency of providing liquidity to markets on Synthetix V3 and sUSDe presents an attractive option to fulfill this need.
+USDe holders do not receive any of the yield, but do receive points via a sats campaign. This entitles users to receive ENA tokens. It is important that Synthetix supports both programs so users are given optionality while we can increase capital efficiency of providing liquidity to markets on Synthetix Perps and scale the LP collateral.
+
+A discussion on the various risk factors and considerations associated with Ethena and USDe can be found [here]([url](https://forum.makerdao.com/t/morpho-spark-dai-vault-update-1-april-2024/24006#performance-and-pool-selection-1)).
+
+### Technical Specification
+
+Implementation of this SIP will be contingent on the availability of a USDe price oracle on Arbitrum via Pyth Network
+
+### Configurable Values (Via SCCP)
+
+**USDE LP Values**
+- Maximum LP amount: $25M
+- Issuance Ratio: 125%
+- Liquidation Ratio: 105%
+
+**USDe Wrapper Values**
+
+- Maximum Wrapped Amount: 25m
+- Use Oracle from Pyth to price USDe and exchange to synthetix arbitrum stablecoin
+
+## Copyright
+
+Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).