SCCP-2036: Update USDT Perps V2 - Spontaneous Vs Endorsed Liquidation Parameters
| Author | |
|---|---|
| Status | Vote_Pending |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2023-08-14 |
Simple Summary
This SCCP proposes to update the USDT perps v2 parameters as per the below:
maxPDupdated from 15 bp to 30 bpmaxLiqudiationDeltaupdate from 30 bp to 15 bp
Abstract
maxPD (MPD) and maxLiquidationDelta (MLD) are parameters introduced in SIP-2005 and they are set by governance taking into account the below rules:
- maxPD is set to 2 * (offchain maker fee + offchain taker fee)
- maxLiquidationDelta is set to offchain maker + offchain taker fees
These parameters did not respect the above rule of thumb in SIP-2030, which might result in more endorsed liquidations then necessary.
Motivation
The main motivation is to align the maxPD and maxLiquidationDelta parameters in terms of setting across all markets.
Copyright
Copyright and related rights waived via CC0.