Summary
Below, we provide initial recommendations for launch parameters for ORDI, SATS, STX, and ZRO on GMX V2, following our New Assets Listing Framework. We do not recommend the listing of SATS at this time due to its very low liquidity in both spot and futures markets, in addition to its very high volatility. However, if SATS is listed, we also provide recommended parameters.
Based on market cap and trading volume, we recommend setting parameters similar to those of mid-cap assets, adjusting for the specific risks associated with low liquidity and high volatility.
We suggest different Reserve Factors and Open Interest Reserve Factors for backed and synthetic markets and more conservative swap parameters for backed markets.
Asset Breakdown
| Asset | Recommend Listing | Asset Class | Market Cap | Volume | Slippage [bps] | Liquidity Depth [$] |
|---|---|---|---|---|---|---|
| ORDI | Y | Mid Cap | $1,082,435,879 | $231,072,785 | 2 | 300k |
| SATS | N | Mid Cap | $754,989,906 | $49,951,343 | 75 | 150k |
| STX | Y | Mid Cap | $3,375,710,754 | $104,322,335 | 13 | 400k |
| ZRO | Y | Mid Cap | $554,044,569 | $335,602,001 | 30 | 150k |
- Market Cap - average 180 days market cap
- Volume - average 180 days volume
- Slippage - The 99th percentile of slippage on Binance XXXX-USDT perp at 100K
- Liquidity Depth - the 10th percentile of order book depth at 1% from the middle price on leading CEX over the last two months
Below, we present the daily price change for each of the assets, alongside statistics derived from it:
ORDI:
SATS:
STX:
ZRO:
Note: ZRO was listed very recently and there is limited data available
As observed, these assets are highly volatile. Therefore, we recommend a maximum leverage of 100x, a minimum collateral factor of 0.01, and suitable minCollateralFactorOILong and minCollateralFactorOIShort values.
All these assets have very low liquidity on leading CEXs, as shown above by looking at their P10 of liquidity. We will, therefore, limit them to OI caps at conservative initial values of $500k. As these markets grow, we can potentially increase the OI caps while continuing to consider their low liquidity.
Recommendations
| Parameter | Backed Markets | Synthetic Markets |
|---|---|---|
| Position Impact Exponent | 2.2 | 2.2 |
| Position Impact Positive Factor | 2.50E-10 | 2.50E-10 |
| Position Impact Negative Factor | 5.00E-10 | 5.00E-10 |
| Position Impact Max Positive Factor | 0.005 | 0.005 |
| Position Impact Max Negative Factor | 0.005 | 0.005 |
| Position Impact Max Factor for Liquidations | 0 | 0 |
| Swap Impact Exponent | 2 | 2 |
| Swap Impact Positive Factor | 1.5e-8 | 2.5e-9 |
| Swap Impact Negative Factor | 3e-8 | 5e-9 |
| Swap Fee Factor (Positive Price Impact) | 0.0005 | 0.0005 |
| Swap Fee Factor (Negative Price Impact) | 0.0007 | 0.0007 |
| Position Fee Factor (Positive Price Impact) | 0.0005 | 0.0005 |
| Position Fee Factor (Negative Price Impact) | 0.0007 | 0.0007 |
| Borrowing Factor Long | 1.6e-8 | 1.6e-8 |
| Borrowing Factor Short | 1.6e-8 | 1.6e-8 |
| Borrowing Exponent Long | 1 | 1 |
| Borrowing Exponent Short | 1 | 1 |
| Funding Increase Factor | 1.74E-12 | 1.74E-12 |
| Funding decrease Factor | 0 | 0 |
| Max funding Factor | 2.25E-08 | 2.25E-08 |
| Min funding factor | 3e-10 | 3e-10 |
| Threshold for stable funding | 0.05 | 0.05 |
| Threshold for decrease funding | 0 | 0 |
| Min Collateral | 1 | 1 |
| Min Position size | 1 | 1 |
| Min Collateral Factor | 0.01 | 0.01 |
| Min Collateral Factor OI Long | 2.5e-9 | 2.5e-9 |
| Min Collateral Factor OI Short | 2.5e-9 | 2.5e-9 |
| Max Leverage | 100 | 100 |
| Max Open Interest Long | 500,000 | 500,000 |
| Max Open Interest Short | 500,000 | 500,000 |
| Reserve Factor Long | 0.95 | 0.8 |
| Reserve Factor Short | 0.95 | 0.8 |
| Open Interest Reserve Factor Long | 0.9 | 0.75 |
| Open Interest Reserve Factor Short | 0.9 | 0.75 |
| Max PnL Factor Long | 0.8 | 0.5 |
| Max PnL Factor Short | 0.8 | 0.5 |