Hey everyone, lately, we are noticing the $ARB liquidity on centralized exchanges has decreased and the oracle price feeds can be exposed to more abnormal risks. So, to protect the MUXLP and prevent exploits, MUX dev contributors temporarily increased the halfSpread under the market to 0.2% earlier today.
However, the 0.2% spread will significantly increase the trader’s trading cost and weaken the trading experience, which is non-ideal. Therefore, after in-depth evaluation, MUX devs will lower the spread back for ARB/USD pair to 0% but add a minimum position holding time (the holding time setup has always been available in the contract, but the time was set to 0 previously).
The minimum position holding time for ARB/USD position will start at 30 minutes. After the opening of an ARB position, the position needs to be held for at least 30 minutes before the profits can be obtained; if the position is in profit and closed before the minimum position holding time is reached, traders won’t receive the profits and can only receive the collateral.
Beside the time delay, if the index price moves 95% above or below the entry price during the 30 minutes of minimum position holding time (which is very unlikely to happen), the position can be closed with profits before the minimum time is reached.
We are sorry for this change, as the trading experience under the ARB market won’t be as good as before. Still, the minimum position holding time might be the most effective approach for protecting the LP while maintaining the optimized trading cost under the ARB market. MUX contributors will continue to evaluate the situation and make further improvements.