SCCP-190: Update Fees & Atomic Volatility Circuit Breakers Parameters
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Ethereum & Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Closed – 7 vote(s) sYES - 7 |
| Created | 2022-04-25 |
Simple Summary
This SCCP proposes to update the parameters for the atomic and non-atomic exchanges in light of the release of SIP-198 and SIP-222.
Atomic Exchanges on Ethereum
Base Fees
| Ticker | Proposed Fees | Current Fees |
|---|---|---|
| ETH | 25 | 30 |
| BTC | 25 | 30 |
| USD | 0 | 30 |
| EUR | 15 | NA |
| CHF | 15 | NA |
| JPY | 15 | NA |
| AUD | 15 | NA |
| GBP | 15 | NA |
| KRW | 15 | NA |
Ethereum Atomic Exchange Circuit Breakers
| Ticker | Proposed Circuit Breakers Parameters | Existing Circuit Breaker Parameters |
|---|---|---|
| ETH | 3 Answers / 10 Minutes | 3 Answers / 10 Minutes |
| BTC | 3 Answers / 10 Minutes | 3 Answers / 10 Minutes |
| USD | NA | NA |
| EUR | 2 Answers / 10 Minutes | NA |
| CHF | 2 Answers / 10 Minutes | NA |
| JPY | 2 Answers / 10 Minutes | NA |
| GBP | 2 Answers / 10 Minutes | NA |
| KRW | 2 Answers / 10 Minutes | NA |
| AUD | 2 Answers / 10 Minutes | NA |
Other Parameters
- The max volume per block would remaind at 15m$ per block
- USD, ETH and BTC would be using 'USDC', wETH and wBTC as their respective uniswap-v3 equivalents.
- The rest of the feeds, being EUR, CHF, JPY, GBP, AUD and KRW, would trade at the pure chainlink price.
- The
CL_BUFFERwill be set to zero on all assets.
Non-Atomic Exchanges on Ethereum
Base Exchange Fee
| Ticker | Proposed Fees | Previous Fees |
|---|---|---|
| ETH | 25 | 25 |
| BTC | 25 | 30 |
| USD | 0 | 30 |
| EUR | 5 | 25 |
| CHF | 5 | 25 |
| AUD | 5 | 25 |
| JPY | 5 | 25 |
| GBP | 5 | 25 |
| KRW | 5 | 25 |
| AAVE | 70 | 100 |
| DOT | 70 | 100 |
| DEFI | 70 | 100 |
| LINK | 50 | 85 |
Atomic Exchanges on Optimism
Base Exchange Fee
| Ticker | Proposed Fees | Previous Fees |
|---|---|---|
| ETH | 25 | 25 |
| BTC | 25 | 25 |
| USD | 0 | 25 |
| LINK | 35 | 35 |
| EUR | 5 | 25 |
| AAVE | 55 | 70 |
| SOL | 55 | 70 |
| AVAX | 55 | 70 |
| MATIC | 55 | 70 |
| UNI | 55 | 70 |
Abstract
The parameters are as follows:
feeRateForExchangeis the fee that is paid by traders computed by adding thebaseFeeof the source and destination currencies after SIP-222. Previously that fee is based purely on the destination currency.atomicMaxVolumePerBlockis the max volume in sUSD per block.- The
atomicVolatilityConsiderationWindowis the the time window to evaluate whether a synth is too volatile to atomically exchange, specified in number of seconds - The
atomicVolatilityUpdateThresholdis the maximum number of Chainlink updates in the consideration window before a synth is deemed too volatile to atomically exchange, specified in number of updates.
Motivation
The base fees were primarily calibrated by considering the historical volatility of the assets as to limit the latency arbitrage. The atomic exchange circuit breakers were set by looking at the number of historical oracle prices pushes during different time intervals under different volatility environments with the aim of limiting trading disruption.
Copyright
Copyright and related rights waived via CC0.