SCCP-2008: Sunset Perps V1 Markets

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Simple Summary

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.


  • The liquidationBufferRatio represents 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 liquidationBufferRatio requirement can be liquidated.
  • The liquidationFeeRatio is 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:

market MarketSizeUSD
sETH 108,319
sXAG 11,300
sBTC 12,158
sXAU 3,523
sMATIC 2,043
sLINK 2,920
sOP 2,170
sDOGE 511
sAPE 554
sDebtRatio 365
sAVAX 1,149
sUNI 352
sDYDX 159
sEUR 3,617
sBNB 154
sSOL 370
sXMR 0

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