Raise exchange fees of trades into
iETHby 25 bp to
0.75% and on
sETH by 20 bp to ‘0.50%’.
Increasing fees by 20 bp on
sETH and by 25 bp on
iETH should narrow down the front-running gap which remained possible after yesterday’s rate increase.
Analysis of on-chain data showed that front-running continued to be possible on iETH, as the synth is close to it’s lower limit. Furthermore, due to the chainlink push threshold of 0.50%, fees on sETH should be raised to match the push frequency and close up the front-running window completely. It should be mentioned that I will be advocating for lowering fees on iETH back to previous levels (and will write the needed SCCP), after the synth is frozen and the leverage is reset.
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