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.

FOR

• Increase the supply cap to 600k

AGAINST

• Do not increase the supply cap to 600k (leave at 400k)