Simple Summary

This SCCP proposes to update the following parameters:

• Double the PEPE max market value to 2.4 trillion from 1.2 trillion previously (i.e. to 4m$)
• Double the BNB max market value to 40k from 20k (i.e. to 9.5m$)
• Lower the skewScale on PEPE to 30 trillion from 37 trillion

Abstract

Below is a description of the parameter being changed:

• maxMarketValue is the maximum amount of open interest allowed on long and short positions in a given perp market.
• skewScale is a scaling parameter that helps calibrate the amount of slippage (or price improvement) a position receives when a position is modified. It also is a parameter that affects the speed by which funding rate changes.

Motivation

The motivation behind these changes are as follows:

• PEPE and BNB having high utilization, which exceeds 75%, would benefit from the maxMarketValue increase. It is worth noting that the open interest exposure on synthetix's side is far below that available on other trading venues, so the changes denoted in this SCCP are still fairly conservative.
• Lowering the skewScale parameter on PEPE, helps incentivize large volume arbitrages that neutralize a skew, taking into account the slippage incurred on other trading venues.

Copyright

Copyright and related rights waived via CC0.