Simple Summary

This SCCP proposes to update the maxLiquidationDelta and maxPD parameters to 10 and 20 bp respectively on the FTM and BCH markets.

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 determine whether an account can be liquidated spontaneously or exclusively by endorsed Liquidators.

Motivation

The proposed changes in this SCCP are necessary, in order to continue to execute liquidations safely, taking into account changes to the makerFee proposed in SCCP-2019.

Copyright

Copyright and related rights waived via CC0.