SCCP-62: Increase fees on iETH to 0.75% and sETH to 0.50%
| Author | |
|---|---|
| Discussions-To | governance |
| Status | Implemented |
| Created | 2020-11-21 |
Simple Summary
Raise exchange fees of trades into iETHby 25 bp to 0.75% and on sETH by 20 bp to '0.50%'.
Abstract
Increasing fees by 20 bp on sETH and by 25 bp on iETH should narrow down the front-running gap which remained possible after yesterday's rate increase.
Motivation
Analysis of on-chain data showed that front-running continued to be possible on iETH, as the synth is close to it's lower limit. Furthermore, due to the chainlink push threshold of 0.50%, fees on sETH should be raised to match the push frequency and close up the front-running window completely. It should be mentioned that I will be advocating for lowering fees on iETH back to previous levels (and will write the needed SCCP), after the synth is frozen and the leverage is reset.
Copyright
Copyright and related rights waived via CC0.