VBP1 - Post-palazzo network parameter changes - 21st Feb 2024

🗳️ Governance Proposals Batch Proposals
1

VBP1 - Post-palazzo network parameter changes - 21st Feb 2024

Batch Summary

This batch includes all network parameter changes that are recommended by the project team as part of the Palazzo Mistero release. The changes included here are to existing network parameters which now make sense to change given the additional features introduced in Palazzo.

The proposal changes two parameters:

Change market.liquidity.probabilityOfTrading.tau.scaling from a value of 1 to a value of 0.1. The network parameter value range restrictions were changed as a result of this specification change allowing values lower than 1. This will reward competitively priced volume more than volume posted with bigger spread.

Change market.liquidity.minimum.probabilityOfTrading.lpOrders from 0.000001 to 0.001. This means that volume that has low probability of trading gets no liquidity reward.

Rationale

The full rationale including supporting analysis can be found at the below link.

https://github.com/vegaprotocol/governance-templates/tree/main/mainnet/0.74-proposal-templates

It is important to note that the recommendations and rationale presented in the repo are recommendations based on testing conducted by the project team, but they are not the only approach. It is expected that the community will review and debate these changes and agree on an appropriate way forward in the forums before ratifying this via on-chain governance.

4 Likes
2

In full support thanks @david, this is much needed!

1 Like
3

We are waiting for an update. They should have a positive impact on our project!

4

We will support these changes.

5

Here is the full proposal JSON that I will be submitting:

{
  "batchProposalSubmission": {
    "rationale": {
      "description": "Update some network parameters",
      "title": "Update network parameters to support new v0.74.x features"
    },
    "terms": {
      "closingTimestamp": "1709156700",
      "changes": [
        {
          "enactmentTimestamp": "1709156700",
          "updateNetworkParameter": {
            "changes": {
              "key": "market.liquidity.minimum.probabilityOfTrading.lpOrders",
              "value": "0.001"
            }
          }
        },
        {
          "enactmentTimestamp": "1709156700",
          "updateNetworkParameter": {
            "changes": {
              "key": "market.liquidity.probabilityOfTrading.tau.scaling",
              "value": "0.1"
            }
          }
        }
      ]
    }
  }
}
1 Like