Simple Summary

This SCCP proposes to deploy the below markets on Perps V3 on Base and Arbitrum:

Market	minimumInitialMarginRatio	initialMarginRatio	maintenanceMarginScalar	skewScale	maxMarketSize	maxMarketValue
CAT	5%	0.449	0.335	100 billion	50 trillion	2m
DEGEN	5%	0.658	0.317	100 million	600 million	1m
SLERF	5%	1.073	0.317	5 million	15 million	500k

Aside from the above parameters , the perps markets will have the following configurations as well:

• TakerFeeRatio: 10 bp
• MakerFeeRatio: 0 bp
• maxFundingVelocity: 9
• flagRewardRatio: 3 bp
• minimumPositionMargin: 50
• lockedOiRatio: 0.5
• maxLiquidationLimitMultiplier: 1.5
• maxLiquidationPD: 5 bp
• endorsedLiquidator: "0x11233749514Ab8d00C0A5873DF7428b3db70030f"

Abstract

The parameters configurations description is as follows:

• initialMarginRatio is a scalar applied on the minimumInitialMarginRatio to determine the minimum initial margin required to support a given portfolio of positions
• maintenanceMarginScalar is a scalar applied on the initialMargin in order to obtain the maintenanceMargin. When traders fall below the maintenance margin, they are liquidated.
• skewScale is the scaling factor of the relevant market in the underlying currency for computing price impact and funding rates
• maxMarketSize is the max market value of the relevant market in the underlying currency
• maxMarketValue is the max market value of the relevant market in USD
• maker/taker fees pertain to fees charged when trading
• maxFundingVelocity is the main parameter that allows to nudge funding rates
• minimumPositionMargin is the minimum margin required
• lockedOiRatio is the multiplier that determines the minimum amount of perp collateral required to back a given perp market
• maxLiquidationLimitMultiplier is a parameter that rate limits liquidations. It is applied on the sum of maker and taker fees with a liquidation rate limit being triggered if pd exceeds that value
• maxLiquidationPD is the minimum pd that triggers a reset of the liquidation capacity
• endorsedLiquidator is a liquidator address that can bypass the rate limit
• the collateral liquidation penalty is the penalty paid to the liquidator for executing a liquidation

Motivation

The more options traders have via Synthetix Perps, the less likely they will move their margin to other trading venues to trade markets we don't provide.

Copyright

Copyright and related rights waived via CC0.