Increase Max Funding Rate to 4%

In reference to this discussion: https://forums.dydx.community/discussion/10234-drc-increase-the-maximum-funding-rate

Background

Considered Finance recommends increasing the maximum funding rate parameter for the following reasons:

• There have been a number of historical instances where the maximum funding rate has been insufficient to incentivize convergence between a perpetual market and its underlying index.
• This has led to interventions such as increased initialMarginFraction and use of ‘close-only’ mode which hamper trader user experience.
• The increase simultaneously caps the funding rate at an acceptable level so traders don’t suffer from temporary dislocations that naturally converge while allowing the room for quick action in extreme cases.
• Reduce the need for manual interventions and reduce tail risks to the exchange.

Proposed Change

Increase the maximum funding rate parameter to 4%. This will apply to all live markets.

Implementation

Update the max_funding_rate field in the general config of the smart contract. Increasing the maximum funding rate to 4% requires changing this field value from ‘1120’ to ‘5970’.

Voting Options

Yes: Increase the maximum funding rate from 0.75% to 4% No: Do nothing