Simple Summary

Following the implementation of SIP-2021, this sccp proposes to unpause the stETH market as per the parameters below:

	{
		"marketKey": "sSTETHPERP",
		"asset": "STETH",
		"makerFee": "0.3",
		"takerFee": "0.3",
		"takerFeeDelayedOrder": "0.3",
		"makerFeeDelayedOrder": "0.3",
		"takerFeeOffchainDelayedOrder": "0.0010",
		"makerFeeOffchainDelayedOrder": "0.0002",
		"nextPriceConfirmWindow": "2",
		"delayedOrderConfirmWindow": "120",
		"minDelayTimeDelta": "60",
		"maxDelayTimeDelta": "6000",
		"offchainDelayedOrderMinAge": "4",
		"offchainDelayedOrderMaxAge": "60",
		"maxLeverage": "27.5",
		"maxMarketValue": "3000",
		"maxFundingVelocity": "9",
		"skewScale": "100000",
		"offchainPriceDivergence": "0.0150",
		"liquidationPremiumMultiplier": "1.5625",
		"offchainMarketKey": "ocSTETHPERP",
		"liquidationBufferRatio": "0.01",
		"maxPD": "0.0024",
		"maxLiquidationDelta": "0.0012",
		"paused": false,
		"offchainPaused": false
	}

Abstract

Below is a description of the primary parameters involved with this market:

• maxMarketValue is the maximum amount of open interest allowed on long and short positions in a given perp market.
• skewScale is a scaling parameter that helps calibrate the amount of slippage (or price improvement) a position receives when a position is modified. It also is a parameter that affects the speed by which funding rate changes.
• liquidationBufferRatio is the penalty imposed on a position when it is liquidated. The penalty is calculated as follows: buffer * P * S
• LiquidationPremiumMultiplier or LPM is an additional margin required to be set aside when an account opens position with larger size. The liquidationPremium is calculated as follows: LPM * (S /Scale) * P * S .
• makerFeeOffchainDelayedOrder and takerFeeOffchainDelayedOrder are the fee rates applied on maker & taker off-chain orders in bp
• maxLeverage is the max leverage a position is allowed to take on. Any changes to existing positions that result in the leverage going above maxLeverage would revert.
• maxFundingVelocity is the parameter that helps calibrate the speed by which funding rate changes for a given level of skew & skew scale.
• maxPD (MPD) and maxLiquidationDelta (MLD) are parameters introduced in SIP-2005 and they are typically set as described above. These parameters determine whether an account can be liquidated spontaneously or exclusively by endorsed Liquidators.

Motivation

The primary motivation behind the primary parameter updates:

• maxMarketValue is proposed as an initial cap, however, this can be further increased based on demand, given the abundance of on-chain liquidity of stETH.
• skewScale is updated on few markets in order to align with the slippage incurred from swapping stETH into ETH.
• liquidationBufferRatio and liquidationPremiumMultiplier are mostly aligned with those used on the ETH market.

Copyright

Copyright and related rights waived via CC0.