Simple Summary

This SCCP proposes to update the perp-v2 parameters as per the below configurations:

Max Market Value

	Existing	Proposed	Change
sOP	700,000	1,200,000	+500,000

Skew Scale

	Existing	Proposed	Change
sDYDX	10,000,000	15,000,000	+ 5,000,000
sBCH	340,000	500,000	+ 160,000
sUNI	4,000,000	8,000,000	+ 4,000,000
sFLOW	5,000,000	10,000,000	+ 5,000,000

Abstract

Below is a description on the parameters being updated:

• maxMarketValue is the maximum amount of open interest allowed on long and short positions in a given perp market.
• skewScale is a scaling parameter that helps calibrate the amount of slippage (or price improvement) a position receives when a position is modified. It also is a parameter that affects the speed by which funding rate changes.

Motivation

The primary motivation behind these parameter changes:

• The increase in the OP max market value is due to an increase interest in trading OP with the cap being hit on longs and shorts for an extended period of time.
• Skew Scale is modified on few markets in order to align with the scaling factor seen on centralized exchanges.

Configuration Details

Please note the below important specifications on the timing of the parameter updates:

• maxMarketValue can be changed immediately.
• skewScale can be changed by at most 10% per day (whether up or down) until it reaches the target specified in this SCCP. However, if the existing market is utilized by more than 90% of the prevailing open interest (on both long and short sides), then the skew scale parameter can be updated immediately.

Copyright

Copyright and related rights waived via CC0.