SCCP-221: Update Futures & Spot Price Parameters
| Author | |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Ethereum & Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2022-08-14 |
Simple Summary
This SCCP proposes to implement the following changes:
| Ticker | Parameter | Proposed Value | Previous Value | Change | Network |
|---|---|---|---|---|---|
| Dydx | makerFee | 65 bp | 55 bp | +10 bp | Optimism |
| Dydx | takerFee | 75 bp | 65 bp | +10 bp | Optimism |
| Dydx | makerFeeNextPrice | 55 bp | 45 bp | +10 bp | Optimism |
| Dydx | takerFeeNextPrice | 60 bp | 45 bp | +15 bp | Optimism |
| Dydx | maxMarketValueUSD | 100k$ | 2m$ | -1.9m$ | Optimism |
| Uni | makerFee | 65 bp | 35 bp | + 30 bp | Optimism |
| Uni | takerFee | 75 bp | 40 bp | + 35 bp | Optimism |
| Uni | makerFeeNextPrice | 55 bp | 30 bp | + 20 bp | Optimism |
| Uni | takerFeeNextPrice | 60 bp | 30 bp | + 30 bp | Optimism |
| Uni | maxMarketValueUSD | 100k$ | 1m$ | -0.9m$ | Optimism |
| Uni | feeRateForExchange | 100 bp | 55 bp | +45 bp | Optimism |
| Aave | makerFee | 65 bp | 40 bp | +25 bp | Optimism |
| Aave | takerFee | 75 bp | 45 bp | +30 bp | Optimism |
| Aave | makerFeeNextPrice | 55 bp | 35 bp | + 20 bp | Optimism |
| Aave | takerFeeNextPrice | 60 bp | 35 bp | + 25 bp | Optimism |
| Aave | maxMarketValueUSD | 300k$ | 1m$ | -0.7m$ | Optimism |
| Aave | feeRateForExchange | 100 bp | 55 bp | +45 bp | Optimism |
| Aave | feeRateForExchange | 100 bp | 70 bp | +30 bp | Ethereum |
| Btc | maxMarketValueUSD | 5m$ | 3m$ | +2m$ | Optimism |
| Sol | maxMarketValueUSD | 3m$ | 1m$ | +2m$ | Optimism |
| Avax | maxMarketValueUSD | 3m$ | 1m$ | +2m$ | Optimism |
| Matic | maxMarketValueUSD | 3m$ | 1m$ | +2m$ | Optimism |
Abstract
- The
makerFeeNextPriceandtakerFeeNextPriceare the fees paid by traders when filled for next price futures orders. - The
makerFeeandtakerFeeare the fees paid by traders when filled for immediate orders. - The
maxMarketValueUSDis the maximum amount of open interest allowed on each side of a market. - The
feeRateForExchangeis the fee paid on trades into a particular synths.
Motivation
The deteriorating situation on the liquidity on the Dydx, Uni and Aave tokens, which can be visualized here has increased the risk of actors manipulating the spot token prices, in order to profit from the infinite liquidity and no slippage trades, with some suspicious activies seen on chain. Hence increasing fees and lowering the open interest leans against these risks. It is important to mention, that Futures V2, which includes a slippage parameter, helps better manage these risks without resorting to baseFee and open interest adjustment.
As for the BTC, SOL, AVAX and MATIC markets, liquidity is sufficient and utilization is high enough that an increase in open interest is deemed acceptable.
Copyright
Copyright and related rights waived via CC0.