Contingent on this vote passing on-chain, it would be prudent to update the Charm SPOT/USDC vault configuration to account for the reduced flash fees. As Brandon articulated on discord, we need to be mindful of the mechanics of liquidity concentration.
Currently Charm’s concentrated liquidity is activated when SPOT’s price is roughly [-8%, 8%] of the FMV (the “active zone” on the contract is [-5%,5] and the base liquidity width of 3% ).
We could update the new active zone to be [-5%, 11%]. (The actual smart contract configuration would be [-2%,8%] and the base liquidity width would remain as is). This simply keeps the existing 16% band while mitigating the concentrated liquidity risk.