SCCP-2030: Update Perp Parameters
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2023-07-31 |
Simple Summary
This SCCP proposes to update the perp parameters as the below configuration:
Max Market Value
| Market | Current OI | Proposed OI | Current OI $ | Proposed OI $ | OI$ Delta |
|---|---|---|---|---|---|
| sETH | 20,000 | 27,000 | $ 37,361,200 | $ 50,437,620 | $ 13,076,420 |
| sSTETH | 3,000 | 1,500 | $ 5,586,378 | $ 2,793,189 | $ (2,793,189) |
| sDOGE | 70,000,000 | 50,000,000 | $ 5,523,987 | $ 3,945,705 | $ (1,578,282) |
| sBNB | 40,000 | 20,000 | $ 9,758,624 | $ 4,879,312 | $ (4,879,312) |
| sCRV | 2,000,000 | 3,000,000 | $ 1,279,621 | $ 1,919,431 | $ 639,810 |
| sXRP | 10,000,000 | 4,250,000 | $ 7,036,999 | $ 2,990,725 | $ (4,046,275) |
| sLTC | 45,000 | 32,000 | $ 4,223,915 | $ 3,003,673 | $ (1,220,242) |
Skew Scale
| currency | Current Scale | Proposed Scale | Delta |
|---|---|---|---|
| sBNB | 750,000 | 850,000 | + 100,000 |
| sXRP | 300,000,000 | 500,000,000 | + 200,000,000 |
| sLTC | 1,650,000 | 2,250,000 | + 600,000 |
| sSOL | 6,000,000 | 7,500,000 | + 1,500,000 |
| sADA | 290,000,000 | 400,000,000 | + 110,000,000 |
| sMATIC | 125,000,000 | 200,000,000 | + 75,000,000 |
offchain Maker Fee
Increase the offchain maker fee on FTM and BCH back to 2 bp from 0 bp currently (undoing SCCP-2019)
Max Funding Velocity
Increase the maxFundingVelocity to 36 on the following sSTETH, sINJ, sFLOKI, sPEPE, sTRX, sDOT, sATOM, sARB, sDOGE, sLINK, sAXS, sUNI, sLDO, sBLUR, sSHIB, sAVAX, sBNB, sCRV, sOP, sLTC, sAPT, sDYDX, sSOL, sSUI, sFIL, sADA, sAPE, sNEAR, sAAVE, sMATIC, sGMX, sFLOW, sETHBTC, sYFI, sMKR, sCOMP, sXMR, sMAV, sBCH, sRPL, sETC, sXRP and sFTM.
Therefore, the maxFundingVelocity on sETH, sBTC, forex and commodities markets would remain unchanged.
Abstract
The parameters configurations description is as follows:
- maker/taker offchain delayed orders pertain to fees charged with the pyth offchain route
- maxMarketValue is the max market value of the relevant market in the underlying currency
- skewScale is the scaling factor of the relevant market in the underlying currency for computing PD and Funding Rates
- maxFundingVelocity is the main parameter that allows to nudge funding rates given a persistent skew
Motivation
The main motivation is as follows:
- Max Market Value was increased on ETH and CRV markets, taking into account the available oi across different trading venues. The SCCP also proposes to lower the open interest limit on different markets based on review of open interest utilization in the last few weeks.
- Skew Scale was updated in order to algin the price impact with those observed in centralized exchanges.
- It has been observed that the funding rate mechanism helps balance out the skew during times of increased volatility. Hence, the changes proposed in this SCCP aims at better balancing out of the skew on long-tailed exposures.
- offchain maker fee are restated back to 2 bp on FTM and BCH, as funding rates would be more leaned on in order to encourage skew balancing.
Copyright
Copyright and related rights waived via CC0.