SCCP-2092: Update Perps V2 Parameters

Author	Kaleb
Status	Implemented
Type	Governance
Network	Optimism
Implementor	TBD
Release	TBD
Proposal	Loading status...
Created	2024-03-11

Simple Summary

This SCCP proposes to update the perps v2 parameters as per the below:

Skew Scale

Market	Current Scale	Proposed Scale	Current Slippage	Proposed Slippage	Cex Slippage
PYTH	28,875,000	14,437,500	10	20	7
ALGO	103,875,000	51,937,500	8	16	7
BCH	168,750	84,375	13	26	11

Max Market Value

Market	Current MV	Proposed MV	Proposed MV$	CexOI
PEPE	850 billion	275 billion	2.5 million	32,000 billion
SHIB	212 billion	72 billion	2.5 million	4,700 billion
RUNE	614,800	350,000	3 million	5 million
MKR	2,000	1,250	3 million	20,000

Abstract

Below is a description of the parameter changes proposed in the SCCP:

MaxMarketValue is the maximum possible open interest on any given side of a perp market.
skewScale is the scaling factor of the relevant market in the underlying currency for computing PD and Funding Rates.

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 on max market value levels are done in order to align the oi caps with historical utilization.