SCCP-298: Increase Max Funding Velocity

Author
Fifa
StatusImplemented
TypeGovernance
NetworkOptimism
ImplementorTBD
ReleaseTBD
ProposalLoading status...
Created2023-04-26

Simple Summary

With SCCP-293 set to be implemented on the 27th of April, this SCCP proposes to also increase the max funding velocity on ETH & BTC to 9.

Abstract

maxFundingVelocity is the parameter that helps calibrate the speed by which funding rate changes for a given level of skew & skew scale.

Motivation

The main motivation is to help promote arbitrages of the skew, by allowing funding to settle back into neutrality at a faster pace, when outsized positions are executed on the debt pool that flip the skew from short to long or vice-versa.

Copyright and related rights waived via CC0.