# IIP-40 ETH2x-FLI Parameter Update #5

**URL:** <https://gov.indexcoop.com/t/iip-40-eth2x-fli-parameter-update-5/1495>\
**Category:** Proposal\
**Tags:** IIP\
**Created:** [12 May 2021 01:02 UTC](https://gov.indexcoop.com/t/iip-40-eth2x-fli-parameter-update-5/1495 "2021-05-12T01:02:10Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![allan.g](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/allan.g/32/3130_2.png) [@allan.g](https://gov.indexcoop.com/u/allan.g)\
**Post date:** [12 May 2021 01:02 UTC](https://gov.indexcoop.com/t/iip-40-eth2x-fli-parameter-update-5/1495/1 "2021-05-12T01:02:10Z")

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iip: 40  
title: ETH2x-FLI Parameter Update #5  
status: Proposed  
authors: Allan Gulley (@allan.g), Cormac Daly (@afromac)  
created: 2021-05-11

## Simple Summary

Update max trade size from 400 ETH to 250 ETH

## Abstract

Adjust the following parameters on the ETH2x-FLI:

Lower max trade size from 400 ETH to 250 ETH.

## Motivation

The ETH2x-FLI product has several parameters that can be updated through governance. For more information on frequently updated parameters, view [this page.](https://docs.indexcoop.com/governance/fli-strategy-parameter-updates) The max trade size is the maximum amount of collateral asset allowed to be exchanged in a single transaction. The rebalance will be broken down across multiple transactions if the total rebalance notional value is above the max trade size parameter.

Since the last parameter update, the price of ETH has increased significantly (~74%) while liquidity on DEXs has generally stayed the same. In order to target a \<0.6% price impact per trade and minimize market impact, we want to lower the max trade size to 250 ETH. Limiting the max trade size to 250 ETH also provides a buffer if the price of ETH continues to increase.

The max trade size for ETH2x-FLI was adjusted on 4/22/2021 for the same reasons when the price of ETH reached ~$2,400; please see [IIP-35](https://gov.indexcoop.com/t/iip-35-eth2x-fli-parameter-update-4/1312) for details.

FOR

- Lower ETH-FLI max trade size from 400 ETH to 250 ETH

AGAINST

- Do not lower ETH-FLI max trade size.

## Copyright

Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).

The poll will be closed on Friday, May 14th at 1pm US EST.

_Poll ([view on site](https://gov.indexcoop.com/t/iip-40-eth2x-fli-parameter-update-5/1495/1))_

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**Author:** ![oneski22](https://avatars.discourse-cdn.com/v4/letter/o/65b543/32.png) [@oneski22](https://gov.indexcoop.com/u/oneski22)\
**Post date:** [14 May 2021 17:41 UTC](https://gov.indexcoop.com/t/iip-40-eth2x-fli-parameter-update-5/1495/2 "2021-05-14T17:41:48Z")

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Is this closing today? May 14 is a Friday?

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**Author:** ![dylan](https://avatars.discourse-cdn.com/v4/letter/d/e95f7d/32.png) [@dylan](https://gov.indexcoop.com/u/dylan)\
**Post date:** [14 May 2021 19:16 UTC](https://gov.indexcoop.com/t/iip-40-eth2x-fli-parameter-update-5/1495/3 "2021-05-14T19:16:18Z")

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All voting happens via snapshot now, to avoid confusion

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<div class="post-metadata">

**Author:** ![allan.g](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/allan.g/32/3130_2.png) [@allan.g](https://gov.indexcoop.com/u/allan.g)\
**Post date:** [17 May 2021 16:29 UTC](https://gov.indexcoop.com/t/iip-40-eth2x-fli-parameter-update-5/1495/4 "2021-05-17T16:29:00Z")

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Hey David - my mistake on the day/date mismatch. Edited the post to reflect the proper poll closing date (Friday, May 14th).

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<div class="post-metadata">

**Author:** ![allan.g](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/allan.g/32/3130_2.png) [@allan.g](https://gov.indexcoop.com/u/allan.g)\
**Post date:** [24 May 2021 18:16 UTC](https://gov.indexcoop.com/t/iip-40-eth2x-fli-parameter-update-5/1495/5 "2021-05-24T18:16:35Z")

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This proposal was moved to [snapshot](https://snapshot.org/#/index/proposal/QmU3wEFKty118Tws75zmf2VHtBGPDcqCvLWn8ehN4PsYhL) on May 17th, 2021, but it did NOT meet quorum.

Once supply-cap-related IIPs are finalized, this parameter change may be re-proposed.