Simple Summary

Raise exchange fees of trades into iBTC by 25 bp to 0.75% and trades into sBTC by 20 bp to 0.50%.

Abstract

Increasing fees by 25 bp and 20 bp, respectively on iBTC and sBTC, should narrow down the front-running gap which remained possible after today’s rate increase.

Motivation

Analysis of on-chain data showed that front-running continued to be possible on the iBTC and sBTC pair. This is mostly due to chainlink delayed price push threshold. It is worth mentioning that the current rate increases are short-term and other solutions can be explored in the future to close the gap without raising fees on traders.

Copyright and related rights waived via CC0.