SCCP-320: Update Perps V3 Parameters
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Base |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2024-04-13 |
Simple Summary
This SCCP proposes to update the perps v3 parameters as per the below:
Skew Scale
| Market | Current Scale | Proposed Sclae | Current Slippage | Proposed Slippage | Cex Slippage |
|---|---|---|---|---|---|
| ETH | 500,000 | 350,000 | 1.54 | 2.20 | 1.09 |
| W | 8,750,000 | 26,250,000 | 459.24 | 153.08 | 61.89 |
The Slippage figures above consider a trade of size 500k$
Maker Fee
Lower the maker fee on ETH and BTC to zero from 2 bp
Abstract
Below is a description of the parameter changes proposed in the SCCP:
skewScaleis the scaling factor of the relevant market in the underlying currency for computing PD and Funding Rates.makerFeeis the fee paid to LP's when traders reduce the skew
Motivation
The proposed parameter changes on skew scale and maker fee aim at increasing the incentive on arbitrageurs to arbitrage the skew by targeting an effective liquidity with the current level of open interest.
Copyright
Copyright and related rights waived via CC0.