Back in January we changed Minimum Bid Increase (
beg) to 4% and Bid Duration (
ttl) to 60 minutes. @dmitri.z and I have been watching and participating in the flap auctions casually and observed and experienced a small downside on the current configuration we would like to fix with this Signal Request.
ttl is the amount of time an auction runs after the last bet, so having it set to 60 minutes means that an auction participant needs to commit to a MKR price for an hour - basically making a prediction of the MKR price in one hour.
If you are lucky, the price after your bid (usually ~4% discount to market) is not changing too much - if it goes up more than ~2% you are already about to make a loss as the uniswap fees alone are 0.6%, not speaking of hedging, kicking and gas costs.
A 2% swing within an hour on the MKR/DAI-price is actually not too rare.
Of course we could increase the
beg but that would just increase the discount on the auctions resulting in less MKR being burned.
We think we should decrease the
ttl, observe the effects for a while, and then maybe even reduce the
beg later on.
- less time keepers need to commit to a MKR price
- smaller discount, higher MKR burn
- potentially attracts more participants in flap auctions
- higher risk for 0-bids
Please vote for all options you would support in an onchain poll
- No change (60 minutes)
- 45 minutes
- 30 minutes
The Polls will run until 2021-06-24T13:00:00Z; their outcomes will either result in on-chain-polls assuming the outcome of the polls deems it necessary or its intermediate results are going to be taken to another initiative - another signal, onchain-poll or urgency executive.