Simple Summary

This SCCP proposes to update the perps v2 parameters as per the below:

Skew Scale:

Market	Current Scale	Proposed Scale	Current Slippage	Proposed Slippage	Cex Slippage
PYTH	14,437,500	35,000,000	391.00	161.29	36
WLD	3,250,000	9,750,000	168.00	56.00	18

** Slippage figures in the table above are with respect to a trade size of USD 500 thousand **

Update Endorsed Liquidator Parameters

Update the maxLiquidationDelta of and maxPD of the SOL perp market to 8.01 bp and 16.02 bp, respectively.

Abstract

Below is a description of the parameter changes proposed in the SCCP:

• skewScale is the scaling factor of the relevant market in the underlying currency for computing PD and Funding Rates.
• maxPD and maxLiquidationDelta, described in SIP-2095, are parameters that determine whether accounts flagged for liquidation require an endorsed account to confirm the liquidation. As a rule, the maxPD is configured to 2 * (offchain maker fee + offchain taker fee) while the maxLiquidationDelta is set to offchain maker + offchain taker fees.

Motivation

The proposed parameter changes on skew scale aim at calibrating the incentive on arbitrageurs to arbitrage the skew by targeting an effective liquidity comfortably below liquidity available on centralized exchanges.

The update to maxPD and maxLiquidationDelta are proposed in this SCCP, following the change in maker fee on the SOL perp market in SCCP-2106.

Copyright

Copyright and related rights waived via CC0.