This SCCP proposes to update the perp-v2 parameters as per the below configurations:
Below is a description on the parameters being updated:
maxMarketValueis the maximum amount of open interest allowed on long and short positions in a given perp market.
skewScaleis 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.
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.
Please note the below important specifications on the timing of the parameter updates:
maxMarketValuecan be changed immediately.
skewScalecan 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.
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