SCCP-235: Update Atomic Swap Parameters
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Ethereum |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2022-09-13 |
Simple Summary
Given the need to temporarily lower the atomic volume per block ahead of the POS, this SCCP proposes to experiment with lower the atomicExchangeFeeRate on trades into sETH, which are proposed to be lowered to 10 bp.
Abstract
The atomicExchangeFeeRate is the fee levied on trades into a synths atomically.
Motivation
The average fee on trades into ETH on chain is around 10 bp, whether on uniswap or curve. Lowering the fee to 10 bp while maintaining the upper bound on maxAtomicVolumePerBlock allows the protocol to capture more of the organic on-chain volume through partner aggregator integrations. The frequency of latency arbitrages would increase as a result of the decrease in fees, however, the low maxAtomicVolumePerBlock constrains the profitability of latency arbitrage bots considerably.
The volume would be assessed and more SCCP's would be proposed based on the observed nature of the volume taking place on chain.
Copyright
Copyright and related rights waived via CC0.