This SCCP intends to deprecate Perps V1 Markets by increasing the margin requirement on existing positions. Perps V1 Markets have been in close-only since SIP-278, implemented 3 months ago, but there remains around sUSD 150k worth of positions outstanding.
Deprecation is implemented by raising the
liquidationBufferRatio by 5 percentage points per week, for a 3 month duration. After 3 months, the
liquidationBufferRatio is increased to a level that would cause the rest of the outstanding positions to be closed by liquidation. Furthermore, the
liquidationFeeRatio would be lowered from 35 bp to 2 bp immediately.
Note that existing positions can still be accessed via Kwenta on this link.
liquidationBufferRatiorepresents the proportion of a given position's size that needs to be collateralized by sUSD margin. Accounts who dont maintain enough margin to meet the
liquidationBufferRatiorequirement can be liquidated.
liquidationFeeRatiois the compensation paid to the keeper in order to trigger a liquidation on a given position.
The primary motivation is to enforce sunsetting of outstanding positions in PerpsV1 in the least intrusive manner, leaving enough time for accounts with existing positions to close their positions. The total size per market (i.e. longs + shorts) in PerpsV1 contracts can be found below and the accounts and kwenta smart-contracts holding outstanding positions can be found under the asset folder:
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