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Synthetix’s SCCP-293 to Decrease Fees and Increase Open Position Limits in Perps Contracts

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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

Synthetixs SCCP-293 to Decrease Fees and Increase Open Position Limits in Perps Contracts

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

Are you an active user of Synthetix, a decentralized trading platform built on top of the Ethereum blockchain? If so, you may have heard about the recent update to Synthetix’s smart contract, SCCP-293, and how it will affect perpetual (Perps) contract fees and open position limits. Let’s dive into the specifics of this update and what it means for you as a Synthetix trader.

What is Synthetix?

Before we go any further, let’s briefly touch on what Synthetix is and how it works. Synthetix is a protocol that enables the issuance and trading of synthetic assets (or “Synths”) on the Ethereum blockchain. These Synths track the prices of real-world assets such as currencies, commodities, and stocks, allowing users to trade on their price movements without actually owning the underlying asset.

SCCP-293 Update

On April 28th, 2021, Synthetix announced the activation of SCCP-293, an update to its smart contract, which will significantly reduce Perps fees and increase the limit on open positions. Let’s break down what this means:

Perps Fees

Perpetual (Perps) contracts are a type of derivatives contract that allows traders to take long or short positions on the price of an asset without an expiration date. These contracts are settled every second and incur a fee that is paid by the trader to the protocol.
With the SCCP-293 update, the per-second fee for long positions has been reduced from 0.1% to 0.05%, while the fee for short positions has been reduced from 0.15% to 0.075%. This means that traders will save money on fees when trading Perps contracts on Synthetix.

Open Position Limits

Prior to SCCP-293, there was a limit on the number of open positions that a trader could hold on Synthetix. This limit was set at 2,500 for long positions and 2,500 for short positions. With the new update, this limit has been increased to 5,000 for both long and short positions. This means that traders can now hold more open positions on Synthetix without running into limits.

What Does This Mean for Traders?

The SCCP-293 update is great news for traders on Synthetix as it will allow them to save money on fees and increase their open position limits. This will likely result in more trading activity on the platform and could attract new traders looking for a cost-effective way to trade synthetic assets.

Conclusion

In conclusion, Synthetix’s SCCP-293 update is a significant step forward for the protocol and its users. By reducing Perps fees and increasing open position limits, Synthetix has made trading on the platform more cost-effective and accessible. As always, it’s important to keep in mind the risks associated with trading synthetic assets and to do your own research before making any investment decisions.

FAQs

1. What are Perpetual (Perps) contracts?

Perpetual (Perps) contracts are a type of derivatives contract that allows traders to take long or short positions on the price of an asset without an expiration date.

2. What is the per-second fee for long and short positions under SCCP-293?

Under SCCP-293, the per-second fee for long positions has been reduced from 0.1% to 0.05%, while the fee for short positions has been reduced from 0.15% to 0.075%.

3. What was the open position limit prior to SCCP-293?

Prior to SCCP-293, the limit on the number of open positions that a trader could hold on Synthetix was set at 2,500 for long positions and 2,500 for short positions.

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