Simple Summary

Raise exchange fees on inverses based on the leverage stemming from the token price.

Abstract

Increasing fees on inverse tokens who’s price has decreased considerably relative to the synth price should close up front-running opportunities that were noticed recently.

Motivation

Analysis of on-chain data showed that front-running is possible on the below listed synths, as the chainlink rate push frequency is calibrated for price changes of the synths and not those of inverses, opening up a front-running gap. Raising fees as per the below configuration and continuing to monitor the change leverage would help ensure that minters debt are not exploited.

  iRate sRate Leverage Fee Proposed Fee Previously
iADA 0.083777 0.1822 2.17 150 100
iDEFI 1883.947 3,569.81 1.89 150 100
iETH 444.91 711 1.60 80 30

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