SCCP-69: Increase Fees on Leveraged Inverse Synths
| Author | Kaleb, Spreek, Danijel, farmwell |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Ethereum |
| Implementor | TBD |
| Release | TBD |
| Created | 2020-12-29 |
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 |
Copyright
Copyright and related rights waived via CC0.