SCCP-2036: Update USDT Perps V2 - `maxPD` and `maxLiquidationDelta`
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2023-08-14 |
Simple Summary
This SCCP proposes to update the USDT perps v2 parameters as per the below:
maxPDupdated from 1.5 bp to 3 bpmaxLiquidationDeltaupdate from 3 bp to 1.5 bp
Abstract
maxPD (MPD) and maxLiquidationDelta (MLD) are parameters introduced in SIP-2005 and are set by governance taking into account the below rules:
- maxPD is set to 2 * (offchain maker fee + offchain taker fee)
- maxLiquidationDelta is set to offchain maker + offchain taker fees
These parameters did not respect the best practive rule of thumb which has been rolled out on all existing perp markets which could result in more relinance on endorsed liquidations then necessary without having any effect on the trading experience.
Motivation
The main motivation is to align the maxPD and maxLiquidationDelta parameters as per the rules of thumb established on all markets.
Copyright
Copyright and related rights waived via CC0.