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The Protocol Scope regulates the maintenance and development of the core Sky Protocol and its critical, non-collateral components. The Protocol Scope defines all rules for protocol engineering.
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This Article manages the Activation and Sealing Mechanisms that grant rewards on SKY and Star tokens. Activation and Sealing Mechanisms are designed to incentivize governance participation and long-term commitment to the Sky Ecosystem.
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Sealing is available both for SKY and MKR holders, with 1 MKR counting as 24,000 SKY. Sealing seals the principal tokens behind an Exit Fee. Sealing provides USDS Rewards or Star Token Rewards. Sealing users can also generate USDS using the USDS content of the Smart Burn Engine as collateral. Users’ ability to generate USDS is based on the equivalent quantity they hold of sealed SKY. The Sealing mechanism is governed by the Stability Scope.
The current LSE-MKR-A & Liquidation parameters are:• Cut: 0.99• Step: 60 seconds• Buf: 1.20• Cusp: 0.40• Tail: 6,000 seconds• Chip: 0.1%• Tip: 300 DAI• Calc: StairstepExponentialDecrease• Ilk.chop: 8%• Tolerance: 0.5• Dust: 30,000 DAI• Ilk.hole: 3M DAI• Stability Fee: 12%• spotter[ilk].mat (Liquidation Ratio): 200%• DC-IAM line: Initially, the parameter is set to 20 million. After launch of the Seal Engine the DC-IAM line parameter must be dynamically set, through executive votes at regular intervals, to be equivalent to the amount of USDS in the Surplus Buffer minus 20 million, OR if the USDS contents of the Smart Burn Engine fall below 30 million it must be set to 0.• DC-IAM gap: 5M• DC-IAM ttl: 16h• Add Seal Module to LineMom GSM ExceptionOther Seal Module Params:• farms (Whitelisted set of farms to choose from): LsMkrUsdsFarm• fee - (Exit Fee): 5%StakingRewards:• rewardsDistribution: Set to the Splitter• rewardsDuration: 15,649 seconds