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Synthetix Announces SCCP-293 Activation to Update Perpetual Contract Parameters

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On April 28th, Synthetix announced that SCCP-293, which has been activated to update perpetual contract parameters, will significantly reduce Perps fees and increase the limit on o

Synthetix Announces SCCP-293 Activation to Update Perpetual Contract Parameters

On April 28th, Synthetix announced that SCCP-293, which has been activated to update perpetual contract parameters, will significantly reduce Perps fees and increase the limit on open positions.

Synthetix has activated SCCP-293 for updating perpetual contract parameters

Synthetix, a decentralized financial trading platform built on the Ethereum blockchain, has recently announced the activation of SCCP-293. This update is set to change the parameters of perpetual contracts, reducing fees and increasing the limit on open positions. This article will delve deeper into the specifics of SCCP-293 and how it will impact users on the Synthetix platform.

What is SCCP-293?

SCCP stands for Synthetix Improvement Proposal, which serves as a means of discussing and implementing changes to the Synthetix protocol. SCCP-293 was proposed and passed by the Synthetix community on March 5th, 2021, and has now been activated.
The purpose of SCCP-293 is to update the parameters of perpetual contracts, which are a type of derivative trading instrument on the Synthetix platform. Specifically, SCCP-293 will reduce the fees associated with trading these contracts and increase the limit on open positions.

Changes to Perpetual Contract Fees

One of the main changes that SCCP-293 brings is a significant reduction in the fees associated with trading perpetual contracts. Prior to the activation of SCCP-293, the fee to open a position in a perpetual contract was 0.3%, and the fee to close a position was 0.3%. With the activation of SCCP-293, both of these fees have been reduced.
The fee to open a position in a perpetual contract has been reduced from 0.3% to 0.1%, which will make it cheaper for traders to enter into these positions. Meanwhile, the fee to close a position has been reduced from 0.3% to 0.05%, which will make it less expensive for traders to exit their positions.

Changes to Perpetual Contract Position Limits

In addition to reducing fees, SCCP-293 also brings an increase in the limit on open positions for perpetual contracts. Prior to the activation of SCCP-293, the limit on open positions for perpetual contracts was set at 20,000 sUSD. With the activation of SCCP-293, this limit has been increased to 25,000 sUSD.
This increase in the limit on open positions will allow traders to engage in larger trades and potentially earn higher profits. However, it’s important to note that larger trades also carry higher risk, so traders should be aware of this before taking on larger positions.

Implications of SCCP-293 for Synthetix Users

Overall, the activation of SCCP-293 is a positive development for users of the Synthetix platform. It makes it cheaper for traders to enter and exit perpetual contracts, and also allows for larger positions to be taken on these contracts.
However, it’s important to note that these changes also come with potential risks. Traders should always be aware of the risks involved in trading any financial instrument, and should only take on positions that they are comfortable handling. Additionally, it’s important to keep an eye on any further developments or changes to the Synthetix platform, as these can also impact trading conditions.

Conclusion

The activation of SCCP-293 on the Synthetix platform represents a positive development for users of the platform, particularly those who trade perpetual contracts. The reduction in fees and increase in position limits will make it easier and potentially more profitable for traders to engage in these trades. However, it’s important to keep in mind the potential risks involved and to always trade responsibly.

FAQs

1. What is a perpetual contract?
A perpetual contract is a type of derivative trading instrument that allows traders to speculate on the price movements of an underlying asset without actually owning that asset.
2. What is SCCP-293?
SCCP-293 is a Synthetix Improvement Proposal that was recently activated on the Synthetix platform. It is designed to update the parameters of perpetual contracts, reducing fees and increasing position limits.
3. Are there any risks associated with trading perpetual contracts on the Synthetix platform?
Yes, as with any financial instrument, there are potential risks associated with trading perpetual contracts on the Synthetix platform. It’s important for traders to be aware of these risks and to only take on positions that they are comfortable handling.

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