Simple Summary

Adjust the nominal fee on orders through Kwenta to Synthetix v2 perpetual futures markets from 0.5bp to 1bp.

Abstract

Implement a 1bp (0.01%) fee on Synthetix v2 perps markets transactions, raising the fee from the previous 0.5bp (0.005%).

Motivation

With additional incentives on OP likely to run until v2x is deprecated, users can still enjoy competitive fees with this small increase. This adjustment ensures continuous, high-quality trader experience and further incentivizes Kwenta to support the older Synthetix v2 version. It also encourages users to begin transitioning to the newer Synthetix v3 perps markets, in preparation for v2x deprecation. The fee increase will provide additional funding for maintenance and operations of Synthetix v2 perps markets while highlighting the benefits of migrating to the newer v3 perps markets.

Specification

A 1bp fee will be imposed on all orders in Synthetix v2 perps markets through Kwenta, raising the fee from the previous 0.5bp. This fee is adjustable based on governance decisions to align with Kwenta's incentives.

Configuration

This fee will be updated through an amendment to Kwenta's Smart Margin v2 trading engine, recorded in the SMv2 Settings contract (Settings.sol), which manages conditional order executor fees and other configurations. The Kwenta pDAO multisig, as the contract owner, can adjust the fee.

Integration

The fee, referred to as orderFlowFee, will be incorporated into the order submission process at the SMv2 Account contract (Account.sol) level. This includes all SMv2-supported order types and SMv2's native conditional orders mechanism logic. The fee will be denominated in Synthetix v2 perps market's margin currency (sUSD). Depending on the order and market position, it will be deducted from the SMv2 account balance or, if insufficient, the market margin. If deducting a fee would result in an unhealthy position, the transaction will revert.