1. Background
This proposal seeks to modify the A Factor for the xINIT-INIT pool on Initia DEX.
The existing parameter was set at launch to ensure price stability within the stablepool. As liquidity has grown and the system has matured, we now have an opportunity to further optimize the user and LP experience by refining this value.
2. Parameter Changes
| Module | Parameter Name | Current Value | Proposed Value |
|---|---|---|---|
| stablepool (xINIT-INIT) | A Factor | 50 | 20 |
All proposed changes are in accordance with Initia’s governance process and will be automatically applied by the chain once the proposal passes and the voting period concludes.
3. Rationale
This parameter change is intended to enhance capital efficiency and align pool dynamics with optimal market responsiveness.
4. Testing
Impact on Users/Validators:
No negative impact expected. Users may observe a more responsive and intuitive pool pricing experience.
Chain Stability Considerations:
No risks to chain performance. The change follows standard stablepool parameter logic and does not affect core consensus or infrastructure.
Governance Votes
- YES – You support implementing the proposed parameter changes.
- NO – You oppose making these changes to the on-chain parameters.
- NO WITH VETO – This proposal is spam, harmful, or violates governance principles.
EDIT:
A Factor Ramping Period
Once this proposal is approved, the A Factor will be updated using a linear ramp from the current value to the new value over a period of 14 days. This gradual adjustment is designed to minimize any sudden price shifts and protect liquidity providers from value loss during the transition.