SCCP-2012: Double Max Market Value of OP-PERP

Simple Summary

This SCCP proposes to double the maxMarketValue of OP-PERP from 1,200,000 to 2,400,000.

Abstract

This proposal seeks to increase the maxMarketValue for OP-PERP, the perpetual contract market, by doubling its current value. The maxMarketValue represents the maximum amount of open interest allowed on the short or long side of the OP-PERP market.

Motivation

The motivation behind this proposal is based on the following observations:

1. Open Interest Caps: The open interest caps on OP-PERP have consistently reached their maximum capacity, indicating significant demand and participation in the market.

2. Market Skew: The market skew for OP-PERP has remained historically close to neutral, suggesting a balanced market and reduced risks of large-scale price manipulation.

3. Liquidity and Cost of Manipulation: The 2% market depth on multiple exchanges is well over $1,000,000 in liquidity, which implies a considerable cost associated with manipulating the oracle. Sustained price manipulation across multiple exchanges would be necessary, further mitigating the risks.

4. Lono says "To long op unfortunately", Fifa Bobeefa says "I'd say double it".

Given these factors, it is proposed to double the maxMarketValue of OP-PERP to accommodate the growing demand, ensure sufficient open interest, and align the market parameters with its liquidity and overall risk profile.

Specification

The specification for this proposal is as follows:

• Current maxMarketValue of OP-PERP: 1,200,000
• Proposed maxMarketValue of OP-PERP: 2,400,000

Copyright

Copyright and related rights waived via CC0.