SCCP-202: Lower the skew scale
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2022-06-13 |
Simple Summary
Update the skewScale of the futures markets as per the below (in dollar millions):
| Current Skew Scale | Propose Skew Scale | current hourly funding in bp | |
|---|---|---|---|
| BTC | 300 | 50 | 3 |
| ETH | 300 | 50 | 1 |
| LINK | 300 | 20 | 27 |
| SOL | 50 | 20 | 26 |
| AAVE | 50 | 20 | 35 |
| UNI | 50 | 20 | 25 |
| AVAX | 50 | 20 | 25 |
| MATIC | 50 | 20 | 30 |
| APE | 10 | 10 | 32 |
Abstract
The skewScale determines the funding rate for a given level of skew, as per the function maxFunding*skew/skewScale, the lower the skewScale the higher the funding rate.
Motivation
The main motivation is the state of crypto markets, where short positions undertaken by traders should compensate snx stakers for the risk underwriting.
Copyright
Copyright and related rights waived via CC0.