HIP-1 [DG] Update price_band and price_ceiling params

Author: fengtality 0x352

Original Post Date: 24 Feb 2022

Snapshot Proposal Link

Why
The price_band and price_ceiling params in PMM are useful for market making in highly volatile markets. However, since it requires users to set actual prices, it’s unwieldy to use. Also, the bot doesn’t update the bands automatically.

Also, there’s no way to update these bands once they are set.

Based on user feedback, the following changes would improve their user experience with price bands.

What
Change price_floor to price_floor_pct and price_ceiling to price_ceiling_pct so that users enter % to the current price rather than fixed prices.

price_ceiling_pct prompt text: “Enter a percentage to the current price that sets the price ceiling. Above this price, only sell orders will be placed”

price_floor_pct prompt text: “Enter a percentage to the current price that sets the price floor. Below this price, only buy orders will be placed”

Add a parameter called price_band_refresh_time. After this amount of time (in seconds), the price bands are reset based on the current price. The default value for this param should be 86400 (1 day).

Last Post Date: 24 Feb 2022