SCCP-2053: Update Perps V2 Parameters
| Author | |
|---|---|
| Status | Vote_Pending |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Created | 2023-10-13 |
Simple Summary
This SCCP proposes to update the perps v2 parameters as per the below:
| Skew Scale | Current | Proposed | SNX Price Impact | Cex Price Impact |
|---|---|---|---|---|
| FTM | 225,000,000 | 75,000,000 | 24 | 10 |
| WLD | 26,000,000 | 13,000,000 | 26 | 12 |
| INJ | 2,850,000 | 1,425,000 | 36 | 12 |
| MKR | 36,000 | 18,000 | 18 | 8 |
| OP | 4,100,000 | 2,050,000 | 16 | 6 |
| Max Market Value | Current | Proposed | Proposed in $M | Cex OI in $M |
|---|---|---|---|---|
| LDO | 400,000 | 800,000 | 1.41 | 26.21 |
| WLD | 650,000 | 1,300,000 | 2.14 | 46.53 |
| XRP | 4,250,000 | 3,250,000 | 1.48 | 27.81 |
| OP | 4,100,000 | 2,050,000 | 2.72 | 38.58 |
Abstract
Below is a description of the parameter changes propopsed in the SCCP:
MaxMarketValueis the maximum possible open interest on any given side of a perp market.skewScaleis the scaling factor of the relevant market in the underlying currency for computing PD and Funding Rates.
Motivation
The proposed parameter changes on skew scale aim at increasing the incentive on arbitrageurs to arbitrage the skew by targeting an effective liquidity comfortably below liquidity available on centralized exchanges. While the motivation behind the changes on WLD and LDO oi balances are done in order to appease it's high utilization. Finally, XRP and OP oi caps are proposed to be lowered because of their relatively low historical utilization.
Copyright
Copyright and related rights waived via CC0.