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ADR006 Amendment2: Lower POL Exit Criteria

Merged ADR006 Amendment2: Lower POL Exit Criteria
thorchain-admin-develop-patch-75f7 into develop
Merged THORChain requested to merge thorchain-admin-develop-patch-75f7 into develop

Update Nov 23: Lower POL Exit Criteria

As of Nov 23, POL enters at 50% and exits at 40% (4500):

  • POLTargetSynthPerPoolDepth to 4500
  • POLBuffer to 500 PoL will enter at 4500 + 500 = 50% but exit at 4500 - 500 = 40%

The issue is that POL does not stay in the pools long enough to make enough yield to compensate for the Impermanent Loss experienced from the price change as Synth Utilisation drops from 50% to 40%:

BlockHeight: 13,326,840 
Overall RUNE deposited: 7,590,445.22 RUNE
Overall RUNE Withdrawn: 5,704,572.68 RUNE
Current RUNE PnL: -430,760.85 RUNE

To let PoL stay in the pools for much longer (but still exit if a pool is being removed from the network or utilisation drops off), mimir should refine PoL parameters:

  • POLTargetSynthPerPoolDepth to 3000
  • POLBuffer to 2000

PoL will enter at 3000 + 2000 = 50% but exit at 3000 - 2000 = 10%. This should give PoL enough time to make yield on deposits and is not losing to Impermanent Loss.

Merge request reports

Merge request pipeline #1064351577 passed

Stage: generate
Stage: test
Stage: long-test

Merge request pipeline passed for ff4a7f31

Test coverage 52.70% (-0.10%) from 1 job
Deployed to integ‎ration‎ 1 year ago

Merged by PlutoPluto 1 year ago (Nov 7, 2023 9:13pm UTC)

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Pipeline #1064379468 failed

Stage: generate
Stage: test
Stage: build
Stage: long-test

Pipeline failed for 6d9041e5 on develop

Test coverage 52.80% (-0.10%) from 1 job
Deployed to integ‎ration‎ 1 year ago

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