Simple Summary

This SCCP proposes to implement the following:

• Lower the default atomicTwapWindow from 600 seconds to 60 seconds.
• Lower the default considerationWindow from 600 seconds to 0 seconds on both sETH and sBTC.

Abstract

The parameters are described as follows:

• The atomicTwapWindow represents the length of time, during which the relevant uniswap average price is computed.
• The considerationWindow is the length of time, during which chainlink price updates are counted in order to determine whether the volatility circuit breaker is broken.

Motivation

Pertaining to the first parameter change, currently the atomic price is quoted using the worse price between chainlink, uniswap-twap and uniswap-spot. Hence, lowering the atomicTwapWindow would result in better execution for traders overall.

While atomicVolatilityUpdateThreshold, was originally set to 10 minutes, as a precautionary measure in order to lean against extreme market volatility and latency. However given the emerging use case for atomic swaps, that builds on top of cowswap and 1inch-fusion offerings, this precautionary measure can be disabled.

The impact of both these changes leads to a significant saving in gas and allows smaller sized trades to be priced-in.

Copyright

Copyright and related rights waived via CC0.