Simple Summary

Adjust fees on trades into iETH from 30 bp to 70 bp.

Abstract

Proposing to adjust fees on trades into iETH to 70 bp as the higher gas prices as well as the run-up in ETH prices are opening up a front-running gap.

Motivation

iETH fees were set at 30 bp after reset, given that historically matching the link push frequency would not open any front-running gap. However, given the contiued pressure on gas prices, which are causing delays in terms oracle price push, as well as the current and continued increase in ETH price, I propose to increase fees on iETH to 70 bp. The leverage on iETH will be monitored and if the front-running gap were to recede, I would propose to lower fees back down.

Copyright and related rights waived via CC0.