{"componentChunkName":"component---src-pages-sips-sip-markdown-remark-frontmatter-sip-tsx","path":"/sips/sip-231/","result":{"data":{"markdownRemark":{"fileAbsolutePath":"/vercel/path0/content/sips/sip-231.md","frontmatter":{"sip":231,"sccp":null,"title":"OffChain Circuit Breaker","network":"Optimism","author":"Kaleb (@kaleb-keny)","type":"Governance","proposal":"https://snapshot.org/#/snxgov.eth/proposal/QmVPYhPjKKPTqvXpNnpncXmvGqsJrRYUj7LpWRQuvZ8WJn","implementor":null,"release":null,"created":"2022/04/19","updated":null,"status":"Implemented"},"html":"<h2 id=\"simple-summary\" style=\"position:relative;\"><a href=\"#simple-summary\" aria-label=\"simple summary permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Simple Summary</h2>\n<!--\"If you can't explain it simply, you don't understand it well enough.\" Simply describe the outcome the proposed changes intends to achieve. This should be non-technical and accessible to a casual community member.-->\n<p>Formalize the functionality of the centralized circuit breaker specified in <a href=\"https://sips.synthetix.io/sips/sip-55/\">SIP-55</a>, allowing spot and futures markets to be paused for a particular asset class when a <code>deltaThreshold</code>, is exceeded. Trading is resumed when the <code>observedDelta</code> goes back below the respective threshold.<br>\nIt is important to mention that this SIP only formalizes the implementation of the centralized circuit breaker in a transparent fashion, the circuit breaker is already in place on the ethereum network and is already being used on optimism for pausing commodity and stables assets during times of inactivity.</p>\n<h2 id=\"abstract\" style=\"position:relative;\"><a href=\"#abstract\" aria-label=\"abstract permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Abstract</h2>\n<!--A short (~200 word) description of the proposed change, the abstract should clearly describe the proposed change. This is what *will* be done if the SIP is implemented, not *why* it should be done or *how* it will be done. If the SIP proposes deploying a new contract, write, \"We propose to deploy a new contract that will do x\".-->\n<p>The centralized circuit breaker would pause, and resume trading based on the configurable SCCP parameters for each asset class. A <code>deltaThreshold</code>, equivalent to a multiple of the fees paid on a certain asset would offset the profit from the latency gap.</p>\n<h2 id=\"motivation\" style=\"position:relative;\"><a href=\"#motivation\" aria-label=\"motivation permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Motivation</h2>\n<!--This is where you explain the reasoning behind how you propose to solve the problem. Why did you propose to implement the change in this way, what were the considerations and trade-offs? The rationale fleshes out what motivated the design and why particular design decisions were made. It should describe alternate designs that were considered and related work. The rationale may also provide evidence of consensus within the community, and should discuss important objections or concerns raised during discussion.-->\n<p>The main motivation of this sip is to extend the functionality of <a href=\"https://sips.synthetix.io/sips/sip-55/\">SIP-55</a>, to offset the oracle latencies.\nCurrently dynamic fees can be calibrated further as to offset completely that price gap, however, this approach suffers from a determented UX with prolonged periods of high fees. The centralized circuit breaker would help provide a medium-term solution that allows us to provide traders with reasonable fees and minimal downtime, until the decentralized best execution pricing <a href=\"https://sips.synthetix.io/sips/sip-303/\">sip</a> is launched.</p>\n<table>\n<thead>\n<tr>\n<th><strong>ticker</strong></th>\n<th><strong>deltaThreshold</strong></th>\n<th><strong># triggers per day</strong></th>\n<th><strong>down time per day in hours</strong></th>\n<th><strong>average down time in seconds</strong></th>\n<th><strong>sigma down time in seconds</strong></th>\n<th><strong>max downtime in seconds</strong></th>\n</tr>\n</thead>\n<tbody>\n<tr>\n<td>eth</td>\n<td>40</td>\n<td>41</td>\n<td>0.54</td>\n<td>48</td>\n<td>56</td>\n<td>73</td>\n</tr>\n<tr>\n<td><strong>eth</strong></td>\n<td><strong>45</strong></td>\n<td><strong>30</strong></td>\n<td><strong>0.36</strong></td>\n<td><strong>44</strong></td>\n<td><strong>50</strong></td>\n<td><strong>70</strong></td>\n</tr>\n<tr>\n<td>eth</td>\n<td>50</td>\n<td>22</td>\n<td>0.24</td>\n<td>39</td>\n<td>43</td>\n<td>57</td>\n</tr>\n<tr>\n<td>btc</td>\n<td>40</td>\n<td>24</td>\n<td>0.27</td>\n<td>42</td>\n<td>45</td>\n<td>72</td>\n</tr>\n<tr>\n<td><strong>btc</strong></td>\n<td><strong>45</strong></td>\n<td><strong>17</strong></td>\n<td><strong>0.18</strong></td>\n<td><strong>38</strong></td>\n<td><strong>42</strong></td>\n<td><strong>70</strong></td>\n</tr>\n<tr>\n<td>btc</td>\n<td>50</td>\n<td>12</td>\n<td>0.12</td>\n<td>35</td>\n<td>40</td>\n<td>65</td>\n</tr>\n<tr>\n<td>link</td>\n<td>45</td>\n<td>39</td>\n<td>0.2</td>\n<td>18</td>\n<td>14</td>\n<td>49</td>\n</tr>\n<tr>\n<td>link</td>\n<td>50</td>\n<td>25</td>\n<td>0.12</td>\n<td>18</td>\n<td>12</td>\n<td>53</td>\n</tr>\n<tr>\n<td><strong>link</strong></td>\n<td><strong>55</strong></td>\n<td><strong>16</strong></td>\n<td><strong>0.07</strong></td>\n<td><strong>17</strong></td>\n<td><strong>11</strong></td>\n<td><strong>42</strong></td>\n</tr>\n<tr>\n<td>link</td>\n<td>60</td>\n<td>11</td>\n<td>0.05</td>\n<td>16</td>\n<td>12</td>\n<td>38</td>\n</tr>\n<tr>\n<td>link</td>\n<td>70</td>\n<td>5</td>\n<td>0.02</td>\n<td>15</td>\n<td>11</td>\n<td>57</td>\n</tr>\n<tr>\n<td>sol</td>\n<td>50</td>\n<td>57</td>\n<td>0.37</td>\n<td>23</td>\n<td>47</td>\n<td>58</td>\n</tr>\n<tr>\n<td>sol</td>\n<td>60</td>\n<td>30</td>\n<td>0.17</td>\n<td>21</td>\n<td>28</td>\n<td>50</td>\n</tr>\n<tr>\n<td><strong>sol</strong></td>\n<td><strong>65</strong></td>\n<td><strong>20</strong></td>\n<td><strong>0.11</strong></td>\n<td><strong>20</strong></td>\n<td><strong>27</strong></td>\n<td><strong>48</strong></td>\n</tr>\n<tr>\n<td>sol</td>\n<td>70</td>\n<td>13</td>\n<td>0.08</td>\n<td>21</td>\n<td>29</td>\n<td>46</td>\n</tr>\n<tr>\n<td>sol</td>\n<td>80</td>\n<td>7</td>\n<td>0.04</td>\n<td>19</td>\n<td>19</td>\n<td>41</td>\n</tr>\n<tr>\n<td>aave</td>\n<td>60</td>\n<td>49</td>\n<td>0.3</td>\n<td>22</td>\n<td>23</td>\n<td>56</td>\n</tr>\n<tr>\n<td>aave</td>\n<td>70</td>\n<td>28</td>\n<td>0.16</td>\n<td>21</td>\n<td>19</td>\n<td>55</td>\n</tr>\n<tr>\n<td>aave</td>\n<td>75</td>\n<td>22</td>\n<td>0.12</td>\n<td>20</td>\n<td>18</td>\n<td>63</td>\n</tr>\n<tr>\n<td><strong>aave</strong></td>\n<td><strong>80</strong></td>\n<td><strong>17</strong></td>\n<td><strong>0.09</strong></td>\n<td><strong>21</strong></td>\n<td><strong>19</strong></td>\n<td><strong>62</strong></td>\n</tr>\n<tr>\n<td>uni</td>\n<td>50</td>\n<td>52</td>\n<td>0.34</td>\n<td>24</td>\n<td>20</td>\n<td>63</td>\n</tr>\n<tr>\n<td>uni</td>\n<td>60</td>\n<td>25</td>\n<td>0.15</td>\n<td>21</td>\n<td>18</td>\n<td>69</td>\n</tr>\n<tr>\n<td><strong>uni</strong></td>\n<td><strong>65</strong></td>\n<td><strong>20</strong></td>\n<td><strong>0.11</strong></td>\n<td><strong>20</strong></td>\n<td><strong>17</strong></td>\n<td><strong>69</strong></td>\n</tr>\n<tr>\n<td>uni</td>\n<td>70</td>\n<td>14</td>\n<td>0.07</td>\n<td>19</td>\n<td>16</td>\n<td>69</td>\n</tr>\n<tr>\n<td>uni</td>\n<td>80</td>\n<td>8</td>\n<td>0.04</td>\n<td>19</td>\n<td>15</td>\n<td>66</td>\n</tr>\n<tr>\n<td>avax</td>\n<td>50</td>\n<td>40</td>\n<td>0.27</td>\n<td>24</td>\n<td>21</td>\n<td>63</td>\n</tr>\n<tr>\n<td><strong>avax</strong></td>\n<td><strong>60</strong></td>\n<td><strong>19</strong></td>\n<td><strong>0.12</strong></td>\n<td><strong>22</strong></td>\n<td><strong>20</strong></td>\n<td><strong>61</strong></td>\n</tr>\n<tr>\n<td>avax</td>\n<td>70</td>\n<td>10</td>\n<td>0.06</td>\n<td>21</td>\n<td>17</td>\n<td>44</td>\n</tr>\n<tr>\n<td>avax</td>\n<td>80</td>\n<td>7</td>\n<td>0.04</td>\n<td>20</td>\n<td>16</td>\n<td>33</td>\n</tr>\n<tr>\n<td>matic</td>\n<td>40</td>\n<td>119</td>\n<td>0.64</td>\n<td>19</td>\n<td>17</td>\n<td>51</td>\n</tr>\n<tr>\n<td>matic</td>\n<td>50</td>\n<td>50</td>\n<td>0.25</td>\n<td>18</td>\n<td>15</td>\n<td>49</td>\n</tr>\n<tr>\n<td><strong>matic</strong></td>\n<td><strong>60</strong></td>\n<td><strong>22</strong></td>\n<td><strong>0.1</strong></td>\n<td><strong>17</strong></td>\n<td><strong>11</strong></td>\n<td><strong>50</strong></td>\n</tr>\n<tr>\n<td>matic</td>\n<td>70</td>\n<td>10</td>\n<td>0.04</td>\n<td>16</td>\n<td>10</td>\n<td>49</td>\n</tr>\n</tbody>\n</table>\n<p>Proposed parameters to be implemented are in bold and permit pDAO to update the parameters within a -10% + 10% margin of error once launched in order to have a better grasp of the parameters.</p>\n<h3 id=\"commodities\" style=\"position:relative;\"><a href=\"#commodities\" aria-label=\"commodities permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Commodities:</h3>\n<ul>\n<li>The proposed implementation could also be used as to gauge whether a price is active, since our oracle provider does not provide an oracle on the liveliness of the price.</li>\n</ul>\n<h3 id=\"configurable-values-via-sccp\" style=\"position:relative;\"><a href=\"#configurable-values-via-sccp\" aria-label=\"configurable values via sccp permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Configurable Values (Via SCCP)</h3>\n<ul>\n<li><code>deltaThreshold</code>: The absolute value of the delta seen between off-chain and on-chain prices that triggers pausing of trading.</li>\n</ul>\n<h2 id=\"copyright\" style=\"position:relative;\"><a href=\"#copyright\" aria-label=\"copyright permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Copyright</h2>\n<p>Copyright and related rights waived via <a href=\"https://creativecommons.org/publicdomain/zero/1.0/\">CC0</a>.</p>"}},"pageContext":{"id":"0dd1c519-2702-5dc0-a68f-7eda6a417cff","frontmatter__sip":231,"__params":{"frontmatter__sip":"231"}}},"staticQueryHashes":[]}