| sccp | network | title | author | status | created | proposal | type |
|---|---|---|---|---|---|---|---|
2049 |
Optimism |
Update APE Market Parameters |
Kaleb (@kaleb-keny) |
Implemented |
2023-10-06 |
Governance |
This SCCP proposes to lower the skew scale parameter on the APE market from 45,000,000 to 25,000,000.
The slippage on 100k$ on a centralized exchange amounts to 5 bp, while synthetix's slippage would be slightly above 15 bp after these changes are implemented.
The description of the parameters changes is as follows:
skewScaleis the scaling factor of the relevant market in the underlying currency for computing PD and Funding Rates.
The main motivation is to increase the incentive on arbitrageurs to arbitrage the skew by targeting an effective liquidity comfortably below liquidity available on centralized exchanges.
Copyright and related rights waived via CC0.