1. IF Soft Circuit Breaker
We have made an improvement to the insurance fund (IF) mechanism that helps to ensure protocol solvency: IF Soft Circuit Breaker. The Soft Circuit Breaker protects the exchange against insolvency resulting from a severe market event, protocol exploit or hack. In any such event leading to bad debt that exceeds the IF’s ability to pay back, traders that profited during the event will be able to realize these profits only when the IF has funds available to do so (i.e. funds from trading fees). The Soft Circuit Breaker helps keep all users’ funds safe, which is of the highest priority for the core team. If you have any questions or comments, please reach out to us on Discord
2. Migration to Goerli Testnet
Our testnet migration from Kovan to Goerli has been completed. Please find the list of contract addresses here
3. Contract Parameter Updates
Increased ETH Collateral Cap
Since ETH liquidity is getting deeper on Optimism, the ETH collateral cap has been raised to 1000 ETH. The team will monitor this for a few days and aims to further increase it in the near future.
Updated Max Spread Price Ratio
The contract parameter “_MAX_PRICE_SPREAD_RATIO” has been changed from 20% to 10%. After this update, users are not allowed to provide liquidity when the deviation of mark and index price is more than 10%. This ensures the system against bad debt resulting from a severe market event or price manipulation.
4. Liquidity Mining Update
We have updated our Liquidity Mining program “Pool Party” to make it more efficient and robust against potential wash trading. The new formula is based on the amount of time the price is within the LP’s range and the concentration of liquidity. This means only active liquidity will get rewards and concentrated liquidity will get more rewards. The new formula will apply to rewards distributed next week on Oct 24th for liquidity provided during Oct 16-23.