The three-month Ether collateral trial is now complete! This trial was intended to test demand for ETH as an onramp into Synthetix.Exchange, allowing traders to borrow sETH against their ETH at a collateralisation ratio of 150%. One month into the trial there was a bug disclosure that, while it didn’t threaten funds, was still sufficient reason to pause the creation of new loans. This post will outline withdrawal details as well as the next step, which will be launching another trial.
Closing your ETH loan
From now, we will offer a one-week grace period for borrowers to exit the contract and receive their ETH back at the initial APR of 5%. After the one-week period is complete, we will raise the APR to 10%. If that is still insufficient incentive for people to close their loans, we will announce the next steps. Closing a loan is as simple as heading here to Synthetix.Exchange, connecting your wallet, and following the “Close Loan” prompts on the right hand side of the screen.
The second Ether collateral trial
Due to the bug disclosure, we were not able to accurately gauge demand for ETH loans as an onramp into Synthetix.Exchange, so we will run another trial. After the first trial is complete (i.e. when all the Ether has been withdrawn from the contract), we will deploy a new version of the Ether collateral for another 3 month trial to gain more data in preparation for Ether collateral v2.
If you have any further questions, please reach out in the Synthetix Discord.