SIP-46: Ramp up the Amplification Coefficient of Frax pools

Summary

Ramp up the Amplification Coefficient of the FRAXBP and a selection of its constituent metapools.

Abstract

This SIP seeks to increase the Amplification Coefficient [known as, the ‘A’ parameter] of the FRAXBP and FRAXBP metapools on Mainnet and Arbitrum.

Motivation

Increasing the Amplification Coefficient of the FRAXBP metapools, and the FRAXBP itself, stands to give them a competitive depth and performance analogous to the industry standard.

The higher a pool’s Amplification Coefficient is, the wider the range of no-or-low-slippage swaps is. Lower slippage implies more competitive rates and greater volume, which will positively benefit both LPs and the protocol.

Specification

The multisig will queue txn’s to increase Amplification Coefficients according to the following table:

Pool	Chain	Current A	Proposed A
FRAX-USDC-BP	Mainnet	1000	1500
FRAXBP-SUSD	Mainnet	200	500
FRAXBP-USDT	Mainnet	200	800
FRAX-USDC-BP	Arbitrum	500	1000
FRAXBP-USDs	Arbitrum	100	400
FRAXBP-USDT	Arbitrum	100	400

[Note: The Amplification Coefficient will change over time as transactions occur, eventually reaching the target set by this proposal. The Amplification Coefficient may only increase by a maximum of 2x over the span of two weeks-- Meaning it may take some metapools up to 1 month to reach their desired 'A' value.]

For: Increase the amplification coefficients of Saddle Pools in accordance with the table above over the coming weeks.

Against: No change.