SCCP-283: Update Perp Markets Skew Scale
| Author | |
|---|---|
| Status | Rejected |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Created | 2023-02-18 |
Simple Summary
This SCCP proposes to update the skew parameters on the perp markets as per the below:
| PerpMarket | Proposed | Existing | CEX |
|---|---|---|---|
| sLINK | 10,000,000 | 20,000,000 | 22,255,000 |
| sSOL | 7,000,000 | 10,000,000 | 13,673,000 |
| sAVAX | 4,000,000 | 8,000,000 | 9,726,000 |
| sAPE | 5,000,000 | 15,000,000 | 11,492,000 |
| sDYDX | 2,500,000 | 10,000,000 | 5,855,000 |
| sBNB | 250,000 | 750,000 | 459,000 |
| sATOM | 4,000,000 | 7,500,000 | 8,145,000 |
| sAXS | 1,600,000 | 5,000,000 | 3,306,000 |
| sFTM | 25,000,000 | 150,000,000 | 48,558,000 |
| sNEAR | 6,000,000 | 25,000,000 | 12,549,000 |
Abstract
The SkewScale is the primary scaling parameter, that normalizes the skew of the market in order to determine the prevailing premium/discount as well as it's funding rate velocity. Note that the cex parameters shown in the table above are an estimate obtained using the combined orderbooks of major exchanges.
Motivation
The main motivation is help promote and drive arbitrages that balance out a skew originating from large positional swings.
Copyright
Copyright and related rights waived via CC0.