From bd725d764603e61d2b27c8becd05af740040a542 Mon Sep 17 00:00:00 2001 From: kaleb Date: Fri, 30 Jun 2023 09:43:03 +0200 Subject: [PATCH] Update sccp-2018.md --- content/sccp/sccp-2018.md | 8 ++++---- 1 file changed, 4 insertions(+), 4 deletions(-) diff --git a/content/sccp/sccp-2018.md b/content/sccp/sccp-2018.md index 798c24cc3..e3bf8c0a7 100644 --- a/content/sccp/sccp-2018.md +++ b/content/sccp/sccp-2018.md @@ -11,9 +11,9 @@ type: Governance # Simple Summary This SCCP proposes to update the following parameters: -- Increase the PEPE max market value to 2.4 trillion +- Double the PEPE max market value to 2.4 trillion from 1.2 trillion previously (i.e. to 4m$) +- Double the BNB max market value from 20k to 40k (9.5m$) - Lower the skewScale on PEPE from 37 trillion to 30 trillion -- Increase the BNB max market value from 20k to 40k # Abstract @@ -24,8 +24,8 @@ Below is a description of the parameter being changed: # Motivation The motivation behind these changes are as follows: -- PEPE and BNB having high utilization which exceeds 75% would benefit from the `maxMarketValue` increase. It is worth noting that the open interest exposure on synthetix's side is far below that available on other trading venues. -- Lowering the skewScale parameter on PEPE allows for increasing the maxMarketValue, as arbitrages would be incentivized to neutralize skew, taking into account the slippage incurred on other trading venues. +- PEPE and BNB having high utilization, which exceeds 75%, would benefit from the `maxMarketValue` increase. It is worth noting that the open interest exposure on synthetix's side is far below that available on other trading venues, so the changes denoted in this SCCP are still fairly conservative. +- Lowering the skewScale parameter on PEPE, allowsfor large volume arbitrages to be incentivized to neutralize the resulting skew, taking into account the slippage incurred on other trading venues. # Copyright