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Version: testnet (v0.77)

Propose new futures successor market

Propose a cash-settled futures market to succeed an existing market, taking along the equity-like share and a portion of the insurance pool.

Requirements​

You will need:

Anatomy of a new successor market proposal​

The new successor market proposal requires the same fields as a new market proposal, with the addition of two fields described below.

See the new market proposal tutorial for what each field accepts and needs to contain.

  • Settlement asset must match that of the parent market.
  • Instrument name and code should be different to the parent market.

Successor market fields​

The following successor parameters need to be used if you are proposing a market that will succeed an existing market. A successor market that passes governance and is enacted will take the LPs' equity-like share from the parent market, and whatever percentage of the insurance market you choose in the proposal.

  • Parent market ID: Required to define the proposal as for a successor market
  • Insurance pool fraction: Required percentage of the parent market's insurance pool, up to 100%, can be earmarked for transfer to the successor market. It is submitted as a number between and including 0 and 1, which represents the factor for the percentage.

Submitting proposals in a batch​

If you want to submit this proposal as part of a larger batch of proposals, follow this sample structure:

{
    "batchProposalSubmission": {
        "rationale": {
            "title": "High level title",
            "description": "Description of all parts of this batch of proposals"
        },
        "terms": {
            "closingTimestamp": "123",
            "changes": [
                {
                    "enactmentTimestamp": 123,
                    "cancelTransfer": {
                        "changes": {
                            "transferId": "345"
                        }
                    }
                },
                {
                    "enactmentTimestamp": 123,
                    "cancelTransfer": {
                        "changes": {
                            "transferId": "789"
                        }
                    }
                }
            ]
        }
    }
}

Templates and submitting​

In the tabs below you'll see:

  • Annotated example describing what each field is for
  • JSON example that can be submitted with the governance dApp ↗
  • Command line examples for different operating systems

Replace the example data with the relevant details before submitting.

{
 proposalSubmission: {
  rationale: {
   title: "Lorem Ipsum successor",
   description: "A successor market"
  },
  terms: {
   newMarket: {
    changes: {
     // Successor configuration. If this proposal is meant to succeed a given market, then this should be set.
     successor: {
      // ID of the market that the successor should take over from.
      parentMarketId: "marketid",

      // A decimal value between or equal to 0 and 1, specifying the fraction of the insurance pool balance that is carried over from the parent market to the successor.
      insurancePoolFraction: "1"
     },

     // Linear slippage factor is used to cap the slippage component of maintenance margin - it is applied to the slippage volume.
     linearSlippageFactor: 0.001,

     // Decimal places used for the new futures market, sets the smallest price increment on the book. (uint64 as string)
     decimalPlaces: "5",

     // Decimal places for order sizes, sets what size the smallest order / position on the futures market can be. (int64 as string)
     positionDecimalPlaces: "5",

     // Instrument configuration
     instrument: {
      // Instrument name.
      name: "Oranges Daily",

      // Instrument code, human-readable shortcode used to describe the instrument.
      code: "ORANGES.24h",

      // Future product configuration
      future: {
       // Asset ID for the product's settlement asset. (string)
       settlementAsset: "8b52d4a3a4b0ffe733cddbc2b67be273816cfeb6ca4c8b339bac03ffba08e4e4",

       // Product quote name. (string)
       quoteName: "tEuro",

       // Data source spec describing the data source for settlement. (object)
       dataSourceSpecForSettlementData: {
        // DataSourceDefinitionExternal is the top level object used for all external 
        // data sources. It contains one of any of the defined `SourceType` variants. 
        external: {
         // Contains the data specification that is received from Ethereum sources.
         ethOracle: {
          // The ID of the EVM based chain which is to be used to source the oracle data. (uint64 as string)
          // The ID of the EVM based chain which is to be used to source the oracle data. 
          sourceChainId: "1",

          // Ethereum address of the contract to call.
          address: "0x1b44F3514812d835EB1BDB0acB33d3fA3351Ee43",

          // The ABI of that contract.
          abi: "[{" inputs ":[]," name ":" latestRoundData "," outputs ":[{" internalType ":" int256 "," name ":" "," type ":" int256 "}]," stateMutability ":" view "," type ":" function "}]",

          // Name of the method on the contract to call.
          method: "latestRoundData",


          /* Normalisers are used to convert the data returned from the contract method
           * into a standard format. The key of the map is the name of the property,
           * which identifies the specific piece of data to other parts of the data
           * sourcing framework, for example filters. The value is a JSONPath expression
           * for expressing where in the contract call result the required data is
           * located, for example $[0] indicates the first result. $[1].price would look
           * in the second result returned from the contract for a structure with a key
           * called 'price' and use that if it exists. */
          normalisers: [
           {
            name: "prices.ORANGES.value",
            expression: "$[0]"
           }
          ],

          // Number of confirmations required before the query is considered verified
          requiredConfirmations: 3,

          // Conditions for determining when to call the contract method.
          trigger: {
           /* Trigger for an Ethereum call based on the Ethereum block timestamp. Can be
            * one-off or repeating. */
           timeTrigger: {
            /* Repeat the call every n seconds after the initial call. If no time for
             * initial call was specified, begin repeating immediately. */
            every: 30
           }
          },

          // Filters the data returned from the contract method
          filters: [
           {
            key: {
             name: "prices.ORANGES.value",
             type: "TYPE_INTEGER",
             numberDecimalPlaces: 8
            },
            conditions: [
             {
              operator: "OPERATOR_GREATER_THAN_OR_EQUAL",
              value: "0"
             }
            ]
           }
          ]
         }
        }
       },

       // The external data source spec describing the data source of trading termination. (object)
       dataSourceSpecForTradingTermination: {
        // The external data source spec describing the data source of trading termination.
        internal {
         // Internal data source used for emitting timestamps.
         time: {
          // Conditions that the timestamps should meet in order to be considered.
          conditions: [
           {
            // Type of comparison to make on the value. (string)
            operator: "OPERATOR_GREATER_THAN_OR_EQUAL",

            // Value to be compared with by the operator. (string)
            value: "1648684800",
           }
          ]
         }
        },

        // DataSourceSpecToFutureBinding describes which property of the data source data is to be
        used as settlement data and which to use as the trading terminated trigger(object) dataSourceSpecBinding: {
         // Name of the property in the source data that should be used as settlement data.
         // If it is set to "prices.BTC.value", then the Future will use the value of
         // this property as settlement data. (string)
         settlementDataProperty: "prices.ORANGES.value",

         // Name of the property in the data source data that signals termination of trading. (string)
         tradingTerminationProperty: "vegaprotocol.builtin.timestamp"
        }
       },

       // Optional new futures market metadata, tags.
       metadata: [
        "enactment:2024-08-27T09:59:59Z",
        "settlement:2024-08-26T09:59:59Z",
        "source:docs.vega.xyz"
       ],

       // PriceMonitoringParameters contains a collection of triggers to be used for a given market
       priceMonitoringParameters: {
        // PriceMonitoringTrigger holds together price projection horizon τ, probability level p, and auction extension duration
        triggers: [
         {
          // Price monitoring projection horizon τ in seconds. (int64 as string)
          horizon: "43200",

          // Price monitoring probability level p. (string)
          probability: "0.9999999",


          /* Price monitoring auction extension duration in seconds should the price
           * breach its theoretical level over the specified horizon at the specified
           * probability level. (string) */
          auctionExtension: "3600",
         }
        ]
       },

       // Risk model for log normal
       logNormal: {
        // Tau parameter of the risk model, projection horizon measured as a year fraction used in the expected shortfall
        calculation to obtain the maintenance margin,
        must be a strictly non - negative real number.(number) tau: 0.0001140771161,

        // Risk Aversion Parameter. (double as number)
        riskAversionParameter: "0.00001",

        // Risk model parameters for log normal
        params: {
         // Mu parameter, annualised growth rate of the underlying asset. (double as number)
         mu: 0,

         // R parameter, annualised growth rate of the risk-free asset, used for discounting of future cash flows, can be any real number. (double as number)
         r: 0.016,

         // Sigma parameter, annualised volatility of the underlying asset, must be a strictly non-negative real number. (double as number)
         sigma: 0.15,
        }
       },

       // Liquidity SLA parameters
       liquiditySlaParameters: {
        // (string)
        priceRange: 0.1,

        // Specifies the minimum fraction of time LPs must spend "on the book" providing their committed liquidity. (string)
        commitmentMinTimeFraction: "0.1",

        // Specifies the number of liquidity epochs over which past performance will continue to affect rewards. (uint64 as string)
        performanceHysteresisEpochs: "10",

        // Specifies the maximum fraction of their accrued fees an LP that meets the SLA implied by market.liquidity.commitmentMinTimeFraction will lose to liquidity providers
        // that achieved a higher SLA performance than them. (string)
        slaCompetitionFactor: "0.2",
       },

       // Liquidation strategy for this market.
       liquidationStrategy: {
        // Interval, in seconds, at which the network will attempt to close its position. (int64 as string)
        disposalTimeStep: 500,

        // Fraction of the open position the market will try to close in a single attempt; range 0 through 1. (string)
        disposalFraction: "1",

        // Size of the position that the network will try to close in a single attempt. (uint64 as string)
        fullDisposalSize: "18446744073709551615",

        // Max fraction of the total volume of the orderbook, within liquidity bounds, that the network can use to close its position; range 0 through 1. (string)
        maxFractionConsumed: "1",


        /* Decimal > 0 specifying the range range above and below the mid price within which the network will trade to dispose of its position.
         * The value can be > 1. For example, if set to 1.5, the minimum price will be 0, ie max(0, mid_price * (1 - 1.5)), and the maximum price will be mid_price * (1 + 1.5). (string) */
        disposalSlippageRange: "0.1",
       },

       // Specifies how the liquidity fee for the market will be calculated.
       liquidityFeeSettings: {
        // Method used to calculate the market's liquidity fee.
        method: "METHOD_CONSTANT",

        // Constant liquidity fee used when using the constant fee method. (string)
        feeConstant: "0.00005",
       },

       // Liquidity monitoring parameters.
       liquidityMonitoringParameters: {
        // Specifies parameters related to target stake calculation.
        targetStakeParameters: {
         timeWindow: "3600",
         scalingFactor: "0.05"
        },
       },

       // Mark price configuration.
       markPriceConfiguration: {
        // Decay weight used for calculation of mark price.
        decayWeight: "1",

        // Decay power used for the calculation of mark price. (string)
        decayPower: "1",

        // Cash amount, in asset decimals, used for the calculation of the mark price from the order book. (string)
        cashAmount: "5000000",

        // Weights for each composite price data source. (array)
        sourceWeights: [
         "0",
         "1",
         "0"
        ],

        // For how long a price source is considered valid. One entry for each data source
        // such that the first is for the trade based mark price, the second is for the book based price
        // the third is for the first oracle, followed by more oracle data source staleness tolerance. (array)
        sourceStalenessTolerance: [
         "1m0s",
         "1m0s",
         "1m0s"
        ],

        // Which method is used for the calculation of the composite price for the market. (string)
        compositePriceType: "COMPOSITE_PRICE_TYPE_WEIGHTED",

        // Additional price sources to be used for internal composite price calculation. (array)
        dataSourcesSpec: [],

        // List of each price source and its corresponding binding (array)
        dataSourcesSpecBinding: []
       },

       // The market tick size defines the minimum change in quote price for the market
       tickSize: "1",


       /* If enabled aggressive orders sent to the market will be delayed by the configured number of blocks */
       enableTransactionReordering: true
      },

      // Timestamp as Unix time in seconds when voting closes for this proposal,
      // constrained by `minClose` and `maxClose` network parameters. (int64 as string)
      closingTimestamp: 1724662799,

      // Timestamp as Unix time in seconds when proposal gets enacted if passed,
      // constrained by `minEnact` and `maxEnact` network parameters. (int64 as string)
      enactmentTimestamp: 1724749199,
     }
    }
   }

Voting​

All proposals are voted on by the community.

To vote, community members need, at a minimum, the larger of 🔗1 token or 🔗1 token associated to their Vega key.

Your proposal will need participation of 🔗7% and a majority of 🔗66%, so having community support is essential.

Proposers who invite feedback, engage with comments, and make revisions to meet the needs of the community are more likely to be successful.

Enactment​

If successful, the proposal will be enacted at the time you specify in the enactmentTimestamp field, depending on the status of other successor market proposals.