{"componentChunkName":"component---src-pages-sccp-sccp-markdown-remark-frontmatter-sccp-tsx","path":"/sccp/sccp-162/","result":{"data":{"markdownRemark":{"fileAbsolutePath":"/vercel/path0/content/sccp/sccp-162.md","frontmatter":{"sip":null,"sccp":162,"title":"Update Parameters of Atomic Swap","network":"Ethereum","author":"Kaleb (@kaleb-keny)","type":"Governance","proposal":"https://snapshot.org/#/snxgov.eth/proposal/QmXBkGdsVPjFErHfucMR9KJ6XzgCySFni73CD3ytdYUYSi","implementor":null,"release":null,"created":"2022-02-22T00:00:00.000Z","updated":null,"status":"Implemented"},"html":"<h2 id=\"simple-summary\" style=\"position:relative;\"><a href=\"#simple-summary\" aria-label=\"simple summary permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Simple Summary</h2>\n<!--\"If you can't explain it simply, you don't understand it well enough.\" Provide a simplified and layman-accessible explanation of the SCCP.-->\n<p>This SCCP proposes the following updates to Atomic Exchange Contracts:</p>\n<ul>\n<li>Reduce <code>atomicPriceBuffer</code> on trades pertaining to <code>ETH</code> and <code>BTC</code> to zero</li>\n<li>Reduce <code>atomicExchangeFee</code> on trades into of <code>EUR</code> to 20 bp</li>\n<li>Increase <code>atomicMaxVolumePerBlock</code> from sUSD 5 million to sUSD 15 million</li>\n</ul>\n<h2 id=\"abstract\" style=\"position:relative;\"><a href=\"#abstract\" aria-label=\"abstract permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Abstract</h2>\n<!--A short (~200 word) description of the variable change proposed.-->\n<p>The parameters being updated as are as follows</p>\n<ul>\n<li>The <code>atomicPriceBuffer</code> is a parameter that worsens the chainlink price in the calculation of atomic exchange prices</li>\n<li>The <code>atomicExchangeFee</code> is the fee applied on trades into a certain synth</li>\n<li>The <code>atomicMaxVolumePerBlock</code> is the max volume allowed for trading per block</li>\n</ul>\n<h2 id=\"motivation\" style=\"position:relative;\"><a href=\"#motivation\" aria-label=\"motivation permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Motivation</h2>\n<!--The motivation is critical for SCCPs that want to update variables within Synthetix. It should clearly explain why the existing variable is not incentive aligned. SCCP submissions without sufficient motivation may be rejected outright.-->\n<p>This SCCP aims at improving the configuration of the atomic exchange function as to promote more exchange volume and integrations. Below are the main motiviations behind these parameters changes:</p>\n<ul>\n<li>To calibrate the <code>atomicExchangeBuffer</code>, we can see from the <a href=\"https://ibb.co/ZmP1yKL\">BTC</a> and <a href=\"https://ibb.co/SfY5FMX\">ETH</a> price charts that a 30 bp fee is more than enough to cover 90% of the delta observed between the AMM price and the cex price. It should be mentioned, that toxic flow in the form of oracle front-running is considerably harder with atomic exchanges, due to the round trip of 60 bp.</li>\n<li>To calibrate the fee applied on exchanges into <code>EUR</code>, we can look at the delta between the price observed purely from <a href=\"https://ibb.co/YhbgWX5\">chainlink against prices seen on cex</a> which reveals that a 20 bp fee covers most of the delta.</li>\n<li>Finally on the <code>atomicMaxVolumePerBlock</code> parameter, given the liquidity on <code>ETH</code> and <code>BTC</code> in uni-v3 pools and the large number of trades that occur throughout the day, it becomes too costly to take manipulate the pools in order to move the price due to the TWAP and chainlink protection.</li>\n</ul>\n<h2 id=\"copyright\" style=\"position:relative;\"><a href=\"#copyright\" aria-label=\"copyright permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Copyright</h2>\n<p>Copyright and related rights waived via <a href=\"https://creativecommons.org/publicdomain/zero/1.0/\">CC0</a>.</p>"}},"pageContext":{"id":"4c2e73cf-886b-591a-be89-3fae43648d0a","frontmatter__sccp":162,"__params":{"frontmatter__sccp":"162"}}},"staticQueryHashes":[]}