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.
PCT bands can become either too narrow or too wide as market conditions evolve. 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 rewarding. 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 (ordered by index) to better reflect current volatility patterns and maintain the intended balance between reward fairness and feed accuracy:
Feed - Proposed Band (%), Current Band (%)
SGB/USD - 0.140, 0.115
ADA/USD - 0.090, 0.115
FIL/USD- 0.115, 0.090
ARB/USD - 0.115, 0.090
DOT/USD - 0.115, 0.090
TON/USD - 0.115, 0.090
BCH/USD - 0.050, 0.090
NEAR/USD - 0.090, 0.115
UNI/USD - 0.115, 0.090
HNT/USD - 0.090, 0.115
QNT/USD - 0.115, 0.090
AAVE/USD - 0.090, 0.115
S/USD - 0.140, 0.115
RENDER/USD - 0.140, 0.115
NOT/USD - 0.140, 0.115
HBAR/USD - 0.090, 0.115
HYPE/USD - 0.115, 0.140
APT/USD - 0.115, 0.090
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 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 parameter changes on both Songbird and Flare sometime after the voting period expires.