Skip to content
New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

vAMM spread around fair price #2371

Open
davidsiska-vega opened this issue Sep 23, 2024 · 1 comment · May be fixed by #2379
Open

vAMM spread around fair price #2371

davidsiska-vega opened this issue Sep 23, 2024 · 1 comment · May be fixed by #2379
Assignees

Comments

@davidsiska-vega
Copy link
Contributor

Figure out how easy or hard, given current design and implementation would it be to allow some % spread around fair price.

@davidsiska-vega davidsiska-vega added this to the 🕌 Genbu Temple milestone Sep 23, 2024
@witgaw witgaw self-assigned this Sep 25, 2024
@davidsiska-vega
Copy link
Contributor Author

davidsiska-vega commented Oct 7, 2024

Implementation suggestions with 1. a) probably being preferable, but let's see.

a) To achieve the spread no volume implied by the curve is deployed within the specified spread but if cumulated and deployed on the first ticks that are just outside the spread. The fair price + spread is capped +/- lower and upper bounds - 1 tick so that the volume will always get deployed somewhere.

b) Same as 1a) but the volume that's not deployed is placed at lower and upper bounds.

c) Same as 1b) but the volume is "spread evenly across the curve" whatever that means.

d) Same as 1a) but the "missing volume" isn't deployed anywhere. (probably won't ensure you get to zero position if market returns to base price)

  1. We have base price +/- spread and so there is a spread when the curve has no position and quotes around base price. Once it acquires position the spread is gone because it's no longer quoting around the base but it's quoting around the fair price. (this isn't as useless as it initially sounds, but if you have an oracle updating the base price then you have a spread around your base price).

@davidsiska-vega davidsiska-vega assigned cdummett and unassigned witgaw Oct 7, 2024
@cdummett cdummett linked a pull request Oct 23, 2024 that will close this issue
Sign up for free to join this conversation on GitHub. Already have an account? Sign in to comment
Labels
None yet
Projects
None yet
Development

Successfully merging a pull request may close this issue.

3 participants