FTSO Scaling PCT Band Adjustments

ftso group test
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:studio_microphone:FTSO Scaling PCT Bands Adjustments

Following the approval of FIP.11 and SIP.05, an adaptive mechanism was introduced for determining the width of the secondary reward bands (“PCT bands”) in the FTSO Scaling protocol. This mechanism is used to adjust band sizes based on market volatility and spread of individual provider submissions.

While initial band widths were updated accordingly after these proposals were adopted, as market conditions evolve, some PCT bands can become either too narrow or too wide. If the bands are too narrow, natural market volatility can exceed the range of submitted on-chain prices, resulting in accurate submissions being excluded from rewards. Conversely, if bands are too wide, the incentive to provide precise price estimates is reduced, potentially degrading the overall accuracy of FTSO feeds.

This proposal recommends adjusting the PCT bands for the following feeds to better reflect current volatility patterns and maintain the intended balance between reward fairness and feed accuracy:

  • SGB: from 0.090% to 0.115%

  • XRP: from 0.115% to 0.090%

  • XLM: 0.115% to 0.090%

  • DOGE: from 0.160% to 0.090%

  • ALGO: from 0.115% to 0.090%

  • XDC: from 0.090% to 0.050%

  • TON: from 0.050% to 0.090%

  • SHIB: from 0.115% to 0.090%

  • WIF: from 0.160% to 0.140%

  • BONK: from 0.160% to 0.140%

  • ETHFI: from 0.115% to 0.140%

  • ENA: from 0.160% to 0.140%

  • HNT: from 0.090% to 0.115%

  • PEPE: from 0.160% to 0.115%

  • AAVE: from 0.090% to 0.115%

  • TRUMP: from 0.160% to 0.140%

  • USDX: from 0.010% to 0.020%

  • PENGU: from 0.160% to 0.140%

  • HYPE: from 0.115% to 0.140%

  • BERA: from 0.160% to 0.140%

Voting Process

An official request proposal posted in open forum on Discourse for MG members to voice their support or raise any concerns.

The Flare Foundation will then initiate transactions from the polling contracts on both Songbird and Flare for MG members to cast on-chain votes either for or against the proposed changes.

Voting is rejection based and would require 66% participation amongst all eligible MG members and more than 50% of the votes going against the proposal for it to be rejected. Otherwise, the Foundation will proceed with the scaling PCT band changes on Songbird/Flare sometime after the voting period expires.

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FTSOCAN will support this proposal.

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Strongly in support of this proposal.