SCCP-2073: Update Perps V2 Parameters
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2024-01-08 |
Simple Summary
This SCCP proposes to update the perps v2 parameters as per the below:
Skew Scale
| Market | Current Scale | Proposed Scale | CEX Slippage | Proposed Slippage |
|---|---|---|---|---|
| INJ | 1,425,000 | 712,500 | 11 | 18 |
| OP | 22,500,000 | 11,250,000 | 7 | 12 |
| TIA | 3,000,000 | 1,500,000 | 11 | 20 |
| DOGE | 1,875,000,000 | 937,500,000 | 1 | 6 |
| NEAR | 18,750,000 | 9,375,000 | 6 | 14 |
| MKR | 18,000 | 9,000 | 11 | 30 |
| BCH | 225,000 | 112,500 | 5 | 18 |
| SEI | 106,500,000 | 35,500,000 | 12 | 18 |
| RNDR | 7,500,000 | 3,750,000 | 16 | 32 |
| TRX | 430,000,000 | 322,500,000 | 5 | 15 |
| FIL | 12,750,000 | 6,375,000 | 5 | 12 |
| AXS | 2,812,500 | 2,109,375 | 13 | 29 |
| XMR | 191,250 | 95,625 | 13 | 32 |
| COMP | 483,750 | 241,875 | 18 | 40 |
| FXS | 937,500 | 703,125 | 43 | 85 |
Slippage refers to the price impact incurred from trading with a 100k$ notional
Max Market Value
| Market | Current MMV | Proposed MMV | Proposed MMV $M | Avg OI Utiliz $M |
|---|---|---|---|---|
| BTC | 2,350 | 1,400 | 60 | 32.21 |
| ETH | 36,000 | 22,300 | 50 | 16.34 |
| MATIC | 12,000,000 | 5,952,400 | 5 | 0.57 |
| LINK | 1,000,000 | 368,500 | 5 | 1.29 |
| AVAX | 320,000 | 142,700 | 5 | 0.55 |
| OP | 2,050,000 | 1,474,900 | 5 | 1.15 |
| DOT | 300,000 | 139,100 | 1 | 0.08 |
| BCH | 12,000 | 4,200 | 1 | 0.02 |
| FIL | 225,000 | 165,800 | 1 | 0.84 |
| APT | 250,000 | 111,600 | 1 | 0.21 |
| ARB | 4,600,000 | 2,702,700 | 5 | 3.14 |
| SUI | 2,000,000 | 1,190,500 | 1 | 0.24 |
| TRX | 15,000,000 | 10,000,000 | 1 | 0.06 |
| FTM | 6,000,000 | 2,500,000 | 1 | 0.29 |
| NEAR | 1,000,000 | 295,000 | 1 | 0.23 |
| INJ | 200,000 | 79,400 | 3 | 1.24 |
| SEI | 3,000,000 | 1,470,600 | 1 | 0.75 |
| TIA | 270,000 | 198,200 | 3 | 1.21 |
| RUNE | 800,000 | 614,800 | 3 | 1.09 |
| CRV | 6,000,000 | 1,851,900 | 1 | 0.58 |
| LDO | 800,000 | 326,800 | 1 | 0.82 |
| AAVE | 31,150 | 10,100 | 1 | 0.23 |
| WLD | 1,300,000 | 362,300 | 1 | 0.04 |
| RNDR | 400,000 | 263,200 | 1 | 0.12 |
| BLUR | 3,000,000 | 2,222,200 | 1 | 0.15 |
| ALGO | 6,000,000 | 5,263,200 | 1 | 0.03 |
Avg OI Utiliz refers to the average open interest utilization during the latest running month
Abstract
Below is a description of the parameter changes proopsed in the SCCP:
skewScaleis the scaling factor of the relevant market in the underlying currency for computing PD and Funding Rates.maxMarketValuerefer to the maximum open interest allowed on either side of the market.
Motivation
The proposed parameter changes on skew scale aim at increasing the incentive on arbitrageurs to arbitrage the skew by targeting an effective liquidity comfortably below liquidity available on centralized exchanges. While the motivation behind the changes in the maxMarketValue is to align open interest caps with it's respective recent utilization.
Copyright
Copyright and related rights waived via CC0.