Simple Summary

This SCCP proposes to updates the below parameters, pertaining to Perps V3:

lockedOiRatio

ticker	Existing	Proposed
eth	0.5	0.25
btc	0.5	0.25

Max Market Value and Max Market Size

ticker	Current MMV M$	Proposed MMV $M	Current MMS	New MMS
btc	5.0	10.00	149	230
eth	7.0	10.00	2,777	5,000
sol	0.5	3.00	5,000	30,000
snx	0.5	1.00	127,000	500,000

Skew Scale

Ticker	Current Parameter	New Parameter	Current Slippage	Proposed Slippage	Cex
BTC	50,000	35,000	0.75	1.07	0.50
RUNE	2,000,000	3,000,000	215	145	35

Abstract

The parameters configurations description is as follows:

• skewScale is the scaling factor of the relevant market in the underlying currency for computing PD and Funding Rates
• The oi cap for a market is determined by the minimum between the maxMarketValue (in USD) and the value of maxMarketSize in USD.
• The lockedOiRatio determines the minimum amount of requiredCredit available from LP's to back a given market for a given amount of open interest.

Motivation

The update to the lockedOiRatio is to allow improved efficiency of usage of liquidity from USDC stakers. The skewScale update is to incentivize market makers' arbitrage of the skew and lastly the increase in oi caps on these markets is to provide higher levels of oi for traders to open positions given the more efficient of usage of provided liquidity from USDC stakers.

Copyright

Copyright and related rights waived via CC0.