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Sccp 2050 (#1717)
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kaleb-keny authored Oct 11, 2023
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4 changes: 3 additions & 1 deletion content/sccp/sccp-2049.md
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network: Optimism
title: Update APE Market Parameters
author: Kaleb (@kaleb-keny)
status: Vote_Pending
status: Implemented
created: 2023-10-06
proposal: >-
https://snapshot.org/#/snxgov.eth/proposal/0x054b037ab40502146525c3de844ef9859718338f034c3cde29bf3000d6099314
type: Governance
---

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---
sccp: 2050
network: Optimism
title: Update Perps V2 Parameters
author: Kaleb (@kaleb-keny)
status: Vote_Pending
created: 2023-10-10
type: Governance
---

# Simple Summary

This SCCP proposes to update the RUNE and GMX market parameters as per the below:

| **Max Market Value** | **Current** | **Proposed** | **Proposed $** | **CEX OI in $** |
|:------------------:|:-----------:|:------------:|:------------------:|:----------------:|
| GMX | 21,000 | 27,720 | 1.00 M | 8 M |
| RUNE | 400,000 | 800,000 | 1.35 M | 15 M |


| **Skew Scale** | **Current** | **Proposed** | **Slippage Per M$** | **CEX Slippage Per M$** |
|:-------------:|:-------------:|:-------------:|:-------------------:|:-----------------------:|
| GMX | 112,500 | 60,000 | 2,314 bp | 1,085 bp |
| RUNE | 25,500,000 | 12,750,000 | 233 bp | 60 bp |

# Abstract

The description of the parameters changes is as follows:
- `skewScale` is the scaling factor of the relevant market in the underlying currency for computing PD and Funding Rates.
- `MaxMarketValue` is the maximum possible open interest on any given side of a perp market.

# Motivation

The main motivation is to increase the caps on markets with high turnover and high utilization all the while maintaing the incentive of arbitrages in balancing out the skew.

# Copyright

Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).


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