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id Title Status Author Description Discussions to Created
TIP-15 Adapt AMM parameter Implemented Danijel (@dgornjakovic) Adapt Thales AMM maximum skew impact https://discord.gg/8bzFdpGTrp 2021-12-16

Simple Summary

Given the very imbalanced demand for LONG options on Thales market this TIP proposes to increase the maximum skew impact from 5% to 10%

Abstract

Motivation

Current AMM skew is 90-10 LONG dominated.
The maximum skew impact is set to 5% at the moment, but even with that the LONG options are more popular than SHORT options which are being offered without a skew impact.
To reduce some of the AMM exposure this TIP proposes to have the maximum skew impact set to 10%.

Skew impact is determined by the AMM skew on a certain market. If half of the LONG options from the total number of LONG options AMM can offer on a certain market are being bought, but there are 0 SHORT options bough, the skew impact will be maxSkewImpact/2.

Specification

Test Cases

Implementation

Copyright

Copyright and related rights waived via CC0.