SCCP-298: Increase Max Funding Velocity
| Author | Fifa |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Optimism |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2023-04-26 |
Simple Summary
With SCCP-293 set to be implemented on the 27th of April, this SCCP proposes to also increase the max funding velocity on ETH & BTC to 9.
Abstract
maxFundingVelocity is the parameter that helps calibrate the speed by which funding rate changes for a given level of skew & skew scale.
Motivation
The main motivation is to help promote arbitrages of the skew, by allowing funding to settle back into neutrality at a faster pace, when outsized positions are executed on the debt pool that flip the skew from short to long or vice-versa.
Copyright
Copyright and related rights waived via CC0.