SCCP-8: Increase exchange fee back to 50 basis points
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Ethereum |
| Implementor | TBD |
| Release | TBD |
| Created | 2019-12-02 |
Simple Summary
I propose increasing the exchange fee back up to 50 basis points to counter the frontrunning bots.
Abstract
Exchange fees are charged each time a Synth is converted, and this fee is currently set to 30bps as a two-week trial to increase trading volume. But the trading volume has shot up dramatically due to bots, and their trades are very profitable. Increasing it back up to 50 basis points will reduce their profitability while we work on alternative solutions to counter the bots.
Motivation
The existing exchange fee of 30 basis points was implemented as a trial to test if the front-running risk from trading bots was sufficiently reduced. The extremely high trading volumes and considerable profitabiliity suggests that the risk is still too high. I propose increasing the fee back up to 50 basis points indefinitely until another solution is implemented.
Copyright
Copyright and related rights waived via CC0.