IIP-42: ETH2x-FLI Parameter Update #6

IIP: 42 Title: ETH2x-FLI Parameter Update #6 Status: Proposed Author: Allan Gulley (@allan.g) Discussions-to: https://gov.indexcoop.com/t/iip-42-eth2x-fli-parameter-update-6/1536 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.

Copyright and related rights waived via CC0.