Sunsetting Perps V1
SCCP 2008 has passed, and with it goes into motion, a plan to sunset the Perps V1 markets. These markets have been in close-only mode for three months, but some positions still haven’t been closed. Necessary steps in deprecating Perps V1 and moving these last few traders to Perps V2 will begin.
The liquidationBufferRatio will be raised by five percentage points per week for a duration of three months (Starting the week of June 5th ) . After this period, the liquidationBufferRatio will be increased to a level that will cause the remaining outstanding positions to be closed by liquidation. In addition, the liquidationFeeRatio will be reduced from 35 bp to 2 bp.
What does this mean for traders?
Traders with existing positions in Perps V1 can still access their positions via Kwenta and should note:
-
Withdraw all funds from v1 markets within the three-month window to avoid being liquidated.
-
Users can find idle deposits by clicking the
sUSDicon at the top right of the v1 markets page
Removing Isolated v2 margin on Kwenta
Kwenta introduced its proprietary margin engine, Smart Margin v2 (SMv2) ~2 months ago, introducing a system that provides an extensive selection of trading tools tailored for Synthetix perp v2 contracts, including advanced order types, a reimagined Futures UI/UX & contract upgradability. As such, discontinuing support for isolated margin is the last piece to closing out the launching of Smart Margin; thus making it the main margin engine on Kwenta.
During next weeks planned exchange downtime (June 6th at 16:00 UTC - 20:00 UTC), we will remove isolated margin from the Kwenta UI.
Kwenta's decision to end support for Isolated Perp Markets is driven by:
-
Maintaining two separate code bases can pose a significant challenge for developers, requiring additional resources and effort. By shifting the focus towards the Smart Margin feature, developers can concentrate their efforts on refining and optimizing a single risk management solution, ensuring a more efficient allocation of resources.
-
Kwenta's long-term strategic vision lies in prioritizing and further developing Smart Margin functionality. This shift allows developers to dedicate their attention to enhancing the user experience and implementation of the Smart Margin framework instead of allocating time to maintaining yet another product.
-
While Isolated Margin will no longer receive official updates from Kwenta, it will still remain accessible through this deployment.
This will enabling users who have existing positions within Isolated margin to continue accessing and managing them. However, focusing on a single feature like Smart Margin enables Kwenta to streamline development efforts, ensuring a more coherent and robust trading experience for our users.
It is important to note that while isolated margin on old Kwenta deployments will continue to function for a period of time, we cannot provide a guarantee regarding the duration of its functionality. Therefore, we strongly advise traders to migrate to using the Kwenta Smart Margin engine to ensure a seamless and reliable trading experience.
Any Questions?
If you haven't already, join the Kwenta community on Discord.
To be the first to learn about new updates to Kwenta, follow us on Twitter.