SCCP-195: Increase Max Initial Leverage
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2022-05-09 |
Simple Summary
This SCCP proposes to increase maxLeverage on the ETH, BTC, LINK and SOL futures markets to 25 from 10.
Abstract
The initial futures rollout established with SIP-80 was done with 10x leverage to limit risk when offering leverage backed by the synthetix debt pool and allow time for optimizations.
maxLeverage is multiplied by initial margin to find the maximum absolute notional value of a position. In order to align current leverage offerings with other exchanges, this proposal seeks to increase this parameter, allowing for higher leverage.
Motivation
Increasing the maximum initial leverage improves capital efficiency, improves the flexibility of the futures product, and is necessary to offer a comparable product to other exchanges, especially in the case of low volatility assets.
The assets proposed for increased leverage have the best latency and are vetted for market liquidity, trading volume, and credibility. With OI (Open Interest) caps and recently introduced safety mechanisms, increasing the available leverage to 25x from 10x should be possible and make the product more appealing for users.
Copyright
Copyright and related rights waived via CC0.