Simple Summary

Analysis of on-chain data showed that it is possible to lower rates on several synths, as the risk of front-running has reduced significantly with the recent implementation of SCCP-68.

Abstract

The fee levied on trade into a certain synth is usually set based on the chainlink push frequency (adjusted for leverage). Analysis of on-chain data revealed that it is possible to further lower rates on certain low-vol synths.

Motivation

Analysis of on-chain data showed that lowering fees as per the below table is possible and does not expose minters to the risk of front-running. That said, trades will be monitored and if front-running is seen, the current fee structure will be revisited. I should mention that fees could potentially pushed further lower, on the synths proposed below and others (such as forex synths and commodity synths) based on further review of incoming data.

CCY Previous Rate New Rate Rate Decrease
sETH 30 25 5
iETH 70 40 30
sXTZ 100 85 15
iXTZ 100 85 15
sEOS 100 85 15
iEOS 100 90 10
sETC 100 85 15
sLINK 100 85 15
sDASH 100 90 10
iDASH 100 90 10
sXRP 100 90 10

I’d like to thank every member of the synthetix community for their continued unrelenting support and trust through out 2020. I look forward to a period where we have consistent healthy robust exchange volume, with fees and fee-adjustment period lowered to the minimum on L1 (in future work).

Copyright and related rights waived via CC0.