SCCP-212: Raise the skew scale

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Simple Summary

Update the skewScale of the futures markets as per the below (in dollar millions):

Current Skew Scale Propose Skew Scale current 1h normalized funding current dydx 1h funding
BTC 50 300 0.010104% -0.002247%
ETH 50 300 0.006144% 0.000202%
LINK 20 300 0.017516% 0.000366%
SOL 20 50 0.010601% -0.001427%
AAVE 20 50 0.002244% 0.001197%
UNI 20 50 0.004271% -0.003826%
AVAX 20 50 0.003707% 0.000757%
MATIC 20 50 0.000152% 0.000595%
APE 10 10 -0.000603% N/A


The skewScale determines the funding rate for a given level of skew, as per the function maxFunding*skew/skewScale, raising the skewScale will result in a lower funding rate.


skewScale was recently lowered by a significant amount due to the state of the markets, resulting in extremely high funding. This was originally done due to the high volatility and consistent price movement in a single direction. This situation seems to have abated, leaving Kwenta futures traders exposed to extremely unfavorable funding rates, which concerned users have noted are 100x higher than competing exchanges, and which many users have expressed cause normal trading strategies to be impossible on Kwenta. This proposal returns these parameters to their state before sccp-202 to alleviate issues with the UX.

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