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TIP-107.md

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id Title Status Author Description Discussions to Created
TIP-107 Increase ThalesAMM Positional Token price limits Draft padzank (@padzank) Increase price limits of Positional Tokens from 0.1<>0.9 to 0.08<>0.95 https://discord.gg/rPpPcMXSeU 2022-11-21

Simple Summary

Increase ThalesAMM price limits of Positional Tokens from 0.1<>0.9 to 0.08<>0.95.

Abstract

This TIP proposes that ThalesAMM moves minSupportedPrice and maxSupportedPrice from 0.1 and 0.9 to 0.08 and 0.95 respectively.

Motivation

Increasing the liquidity price limits to 0.08 and 0.95 should increase UX and drive more volume while not increasing the AMM risk. Market liquidity will be more resilient towards asset price swings and traders will have more versatility. Allowing purchase of options up to 95% of implied probability means that users will be able to purchase even safer positions but also subsequently drive more volume to the platform. The AMM risk parameters remain the same and ITM position buyers will incur the same risk to the AMM as before but with more volume and fees driven to the SafeBox contract.

Specification

This TIP entails the Thales Protocol DAO to implement to increase the minSupportedPrice to 0.08 and maxSupportedPrice to 0.95 in the (ThalesAMM.sol)[https://optimistic.etherscan.io/address/0x5ae7454827D83526261F3871C1029792644Ef1B1] contract across all supported networks.

Variables

minSupportedPrice = 80000000000000000

maxSupportedPrice = 950000000000000000

Implementation

Copyright

Copyright and related rights waived via CC0.