SCCP-222: Unpause Futures Markets - DebtRatio ,DOGE & BNB

Simple Summary

This SCCP proposes to unpause the DebtRatio, DOGE and BNB markets. The DOGE and BNB markets would take on the following parameters, while the DebtRatio parameters would be the ones specified in SIP-257.

Ticker	Parameter	Proposed Value
BNB	makerFee	30 bp
BNB	takerFee	35 bp
BNB	makerFeeNextPrice	20 bp
BNB	takerFeeNextPrice	25 bp
BNB	maxMarketValueUSD	1m$
BNB	nextPriceConfirmWindow	2
BNB	maxLeverage	25
BNB	maxFundingRate	10%
BNB	skewScaleUSD	50m$
DOGE	makerFee	35 bp
DOGE	takerFee	40 bp
DOGE	makerFeeNextPrice	25 bp
DOGE	takerFeeNextPrice	30 bp
DOGE	maxMarketValueUSD	1m$
DOGE	nextPriceConfirmWindow	2
DOGE	maxLeverage	10
DOGE	maxFundingRate	10%
DOGE	skewScaleUSD	50m$

Abstract

• The makerFeeNextPrice and takerFeeNextPrice are the fees paid by traders when filled for next price futures orders.
• The makerFee and takerFee are the fees paid by traders when filled for immediate orders.
• The maxMarketValueUSD is the maximum amount of open interest allowed on each side of a market.
• The maxFundingRate is the maximum funding rate per day a position can take on.
• The skewScaleUSD determines the funding rate, a lower skewScaleUSD means that funding will be more pronounced to changes in the skew, while a larger leads to buffered reaction.
• The nextPriceConfirmationWindow is the number of chainlink rounds, by which a next price order needs to be confirmed.
• The maxLeverage is the maximum leverage that can be assumed by a position.

Motivation

maxMarketValueUSD

The oi parameters were set based on the slippage one would inccur by trading these tokens on centralized exchanges. This can be seen in this chart under the 1%_slip column, which represents the $ million volume required to push a price by 1%.

makerFee and takerFee

The fees are calibrated by looking at the spread between centralized exchanges prices and those seen on chain for BNB and DOGE. A wider delta requires more significant fees to lean against latency bots, for now but not for long.

Copyright

Copyright and related rights waived via CC0.