SCCP-84: Lower Fees on iETH

Author
StatusImplemented
TypeGovernance
NetworkEthereum
ImplementorTBD
ReleaseTBD
Created2021-02-03

Simple Summary

Given the reset of iETH, this sccp proposes to lower fees on trades into iETH to 40 bp from 70 bp currently.

Abstract

The fee can be decrease to 40 bp without exposing inefficiencies in the oracle price updates due to the abscence of leverage.

Motivation

The fee were originally levied this high in order to counter a front-running gap. However with the price-adjustment waiting period increase to 6 minutes, the fees can be lowered safely without exposing minters to the risk of front-running. However, incoming data will be reviewed, and action will be taken by the council if front-running pockets were found. Note that this sccp supercedes sccp-80 on the iETH rate.

Copyright and related rights waived via CC0.