Simple Summary

This SCCP proposes to deploy the below markets on the new Perps V3 deploy as well SOL and USDe for direct margining.

Markets:

Market	minimumInitialMarginRatio	InitialMarginRatio	maintenanceMarginScalar	skewScale	maxMarketSize	maxMarketValue
LINK	0.20%	5.00	0.34	3,750,000	450,000	5,000,000
ARB	0.33%	1.90	0.38	50,000,000	6,000,000	3,000,000
DOGE	0.20%	1.60	0.36	789,000,000	51,000,000	5,000,000
GMX	0.50%	1.20	0.4	250,000	20,000	500,000
AAVE	0.50%	4.10	0.375	180,000	50,000	3,000,000
NEAR	0.50%	1.60	0.35	8,000,000	750,000	3,000,000
UNI	0.50%	0.49	0.31	2,250,000	500,000	3,000,000
XRP	0.50%	1.20	0.32	187,500,000	5,000,000	1,000,000
LTC	0.20%	5.50	0.4	1,687,500	77,000	5,000,000
ORDI	0.20%	1.16	0.38	870,000	100,000	3,000,000
STX	0.50%	2.80	0.43	15,000,000	700,000	1,000,000
SHIB	0.50%	2.66	0.32	4,000,000,000,000	150,000,000,000	2,000,000
BNB	0.20%	3.40	0.37	250,000	9,500	5,000,000
AVAX	0.20%	4.20	0.36	1,250,000	225,000	5,000,000
PEPE	0.50%	0.60	0.32	8,400,000,000,000	660,000,000,000	5,000,000
OP	0.40%	1.00	0.37	16,000,000	2,000,000	3,000,000
RUNE	0.50%	8.30	0.36	4,000,000	500,000	2,000,000
PYTH	0.50%	0.50	0.37	14,437,500	3,700,000	1,000,000
CRV	0.50%	0.60	0.33	50,000,000	10,000,000	3,000,000
TIA	0.50%	1.20	0.38	4,000,000	800,000	4,000,000
ADA	0.50%	3.20	0.33	150,000,000	12,000,000	4,000,000
BCH	0.50%	1.10	0.31	84,375	15,000	5,000,000
DYDX	0.50%	1.30	0.34	18,000,000	2,000,000	2,000,000
POL	0.20%	1.80	0.37	75,000,000	7,500,000	3,000,000
MKR	0.50%	1.20	0.33	9,000	1,200	2,000,000
XLM	0.50%	1.20	0.37	166,500,000	11,000,000	1,000,000

Aside from the above parameters , the perps markets will have the following configurations as well:

• TakerFeeRatio: 10 bp
• MakerFeeRatio: 0 bp
• maxFundingVelocity: 36
• flagRewardRatio: 3 bp
• minimumPositionMargin: 50
• lockedOiRatio: 0.5
• maxLiquidationLimitMultiplier: 1.5
• maxLiquidationPD: 5 bp
• endorsedLiquidator: "0x11233749514Ab8d00C0A5873DF7428b3db70030f"

Margins:

Margins	discountLower	discountUpper	maxCollateral	skewScale
SOL	5.00%	15.00%	7,500	1,406,250
USDe	0.50%	0.51%	10,000,000	1 wei

Aside from the above parameters, the following parameters apply:

• the discountScalar would be set to 1 for all margins
• the collateral liquidation penalty is 3 bp (collateralLiquidateRewardRatioD18)
• The maxKeeperScalingRatio would be set to 40%
• the wormhole sol token would be used
• the bridged usde token would be used
• The tokens that could be used as margin would be the synth equivalent of the tokens noted above with no fee on wrapping being levied
• The synth fee to sell the synth to USDx (except on USDC) would be set to 30% to discourage swapping until SIP-406 is implemented

Abstract

The parameters configurations description is as follows:

• initialMarginRatio is a scalar applied on the minimumInitialMarginRatio to determine the minimum initial margin required to support a given portfolio of positions
• maintenanceMarginScalar is a scalar applied on the initialMargin in order to obtain the maintenanceMargin. When traders fall below the maintenance margin, they are liquidated.
• skewScale is the scaling factor of the relevant market in the underlying currency for computing price impact and funding rates
• maxMarketSize is the max market value of the relevant market in the underlying currency
• maxMarketValue is the max market value of the relevant market in USD
• maker/taker fees pertain to fees charged when trading
• maxFundingVelocity is the main parameter that allows to nudge funding rates
• minimumPositionMargin is the minimum margin required
• lockedOiRatio is the multiplier that determines the minimum amount of perp collateral required to back a given perp market
• maxLiquidationLimitMultiplier is a parameter that rate limits liquidations. It is applied on the sum of maker and taker fees with a liquidation rate limit being triggered if pd exceeds that value
• maxLiquidationPD is the minimum pd that triggers a reset of the liquidation capacity
• flagRewardRatio is the reward paid to the flagger, capped at 100 snxUSD per account liquidated
• endorsedLiquidator is a liquidator address that can bypass the rate limit
• A discount rate is applied on the margin posted which scales based on it's size and is clamped between the lower and upper limit
• Max Collateral Amount is the maximum possible amount of margin that can be posted
• discountScalar helps increase or decrease the price impact on an account's margin holding
• the collateral liquidation penalty is the penalty paid to the liquidator for executing a liquidation
• minReward/maxReward is used to clamp the reward paid to the keeper for settling an order or liquidating
• profitRatio is an additional profit rate added to the gas costs to increase the incentive to keepers to execute when gas costs rise.
• maxKeeperScalingRatio is the cap on the reward paid to keepers, as a function of the size of the margin. It is intended to limit the situation where accounts are liquidated because of gas price surges

Motivation

The main motivation is to launch more markets on perps v3 on arbitrum with high caps in order to showcase the feature set available with the v3 deploy.

Copyright

Copyright and related rights waived via CC0.