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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 | ||
--- | ||
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# Simple Summary | ||
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This SCCP proposes to update the RUNE and GMX market parameters as per the below: | ||
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| **Max Market Value** | **Current** | **Proposed** | **Proposed $** | **CEX OI in $** | | ||
|:------------------:|:-----------:|:------------:|:------------------:|:----------------:| | ||
| GMX | 21,000 | 27,720 | 1.00 M | 8 M | | ||
| RUNE | 400,000 | 800,000 | 1.35 M | 15 M | | ||
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| **Skew Scale** | **Current** | **Proposed** | **Slippage Per M$** | **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 | | ||
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# Abstract | ||
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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. | ||
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# Motivation | ||
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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. | ||
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# Copyright | ||
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Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). | ||
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